Wells Fargo investigated for overcharging customers on foreign exchange fees
December 4, 2017
The Wall Street Journal recently exposed yet another way banks are bullying US small businesses in their article, Wells Fargo Bankers, Chasing Bonuses, Overcharged Hundreds of Clients.
Wells Fargo, one of the largest banks in the US, has been accused of overcharging customers for international wire transfers. Foreign exchange rates and transfer fees were allegedly inflated in an effort to maximize profit for the bank to achieve sales quotas. According to Wells Fargo employees, only 12% of fee agreements made by the foreign-exchange operation were accurately charged.
Banks are supposed to be safe places you can trust, but this model shows them as businesses interested in charging you as much as they want. How can customers trust banks when 88% of their customers were overcharged?
When it comes to servicing small businesses, the pattern of “bad bank behaviour” is clear. This is yet another major US banking scandal that further jeopardizes the reputation and effectiveness of the legacy banking system, and begs the question of who is fighting for the interests of business owners?
The wire transfer model of all banks, not just Wells Fargo’s, is old, outdated and primed for innovation. Businesses sending payments to their global suppliers and contractors are subject to unnecessary transfer fees and confusing, hidden foreign-exchange fees. Plus, lack of transparency in the legacy banking system leaves businesses in the dark about their payments.
Banks are being outed as the for-profit bullies they are.
The international wire transfer market is undergoing massive change. As Uber erupted in 2009 with an innovative and user-centric model that revolutionized the taxi industry, Veem is modernizing and connecting the global payments world.
Veem’s mission is to create a global payment experience that addresses the pains and failures of the traditional wire transfer business — and more importantly, focuses on the needs of businesses over banks.
Veem’s Connected Payment Platform eliminates bank fees, offers transparent foreign exchange rates, and tracks payment status.
The Connected Payment Platform easily integrates global payments with your accounting software, and provides live support on each payment. Additionally, Veem verifies the receiving business in your transaction to reduce fraud and to ensure your payment gets where you want it to go, quickly and securely.
Veem believes in transparency, creating value for the customer, and promoting the interests of business owners around the world. What’s not to love about that?
Have you had challenges with wire transfers? We’d love to hear about your experiences in the comments.