With the level of globalization we are experiencing in the world today, even small businesses are doing business across country borders. Whether it is paying suppliers overseas or buying goods and paying remote working employees in different currencies, there will always be a need to pay and receive money across borders. And that is why every small business owners need to pay special attention to money transfer services for small business.
Whether it is sending or receiving money both domestically and overseas, money transfer services have a huge advantage over banks. However, with the increase in the number of money transfer providers, you need to be extra careful when choosing one.
Here are the best money transfer services you should consider for your business. But before that, let’s take a look at some distinctions between these services and bank transfers.
What Benefits Do Money Transfer Services Offer Over Banks?
Yes, money transfer is an attractive alternative to banks. These service providers specialize in helping their clients enjoy the best, cheapest, and fastest international transfers to anywhere across the globe. But banks offer many other services and money transfer is only a fraction of what they do. Which means they cannot be as focused as money transfer providers.
Money transfer providers are global expertise in sending and receiving money both locally and overseas. Using them will also help you benefit from their exceptional customer support which is set up specifically to help you transfer funds internationally. Banks cannot meet that kind of support.
Since they are online businesses that have taken full advantage of technological innovation to run their business, they have been able to lower overheads than the banks. That way, they are able to charge much lower for their services. Think of how beneficial that will be for your growing business; having a service that is available 24/7 and also charges a fraction of what banks will traditionally charge.
The best money transfer services for small business
#1: Transferwise
Transferwise has been serving businesses for years, and it is known for its amazing services. One unique feature that sets it apart from several other money transfer services is that it uses two local transactions instead of a single one. It also converts money at the true mid-market exchange rate.
Instead of charging a markup on the exchange rate when you send money internationally, Transferwise only charges a percentage of the amount you are transferring and a flat fee for specific country routes. You don’t need an intermediary to send money here. Transferwise uses local accounts to collect and send money, removing the need for any intermediary bank fees.
Unique features of Transferwise
- It allows for batch payment, hence making it super easy to send money to a large pool of recipients overseas.
- Transparent fees. You will even know how much the recipient will get as you send the money.
- It offers a multi-currency account where you can hold your balances in more than 40 currencies
#2: PayPal
PayPal is not only a popular money transfer company but also one of the pioneers of online payments and transfers. This company has a track record for serving several businesses across the globe, making it easy for them to send and receive money anywhere in the world.
Transfer and payments with PayPal are very fast and easy. But the only downside here is that they are not as cheap as other money transfer services. They charge a markup on the exchange rate, a flat fee, and a processing commission. However, their services make a whole lot of sense to small businesses.
If you are not bothered about the fee but more concerned about having a money transfer service that will allow you to transfer money quickly – almost instantaneously, PayPal got your back.
- Unique features of PayPal
- Speedy, almost instantaneous transfer
- You can make transfers without a bank account
- No minimum or maximum transfer amount
#3: World First
This is a U.K based business that offers money transfers for both individuals and businesses. They have both mobile and desktop versions of their site, and you can also call their customer service center to transfer money. World First also provides money exchange services, such as forward exchange transactions and standard currency exchanges.
Unique features of World First:
- Transaction time is usually between 2-3 days
- Minimum transfer amount is £250
- Transfer involves a two-step process; first, you send the money to them, and then they send it to your recipient’s bank account.
- You can lock-in an exchange rate and transfer money at that rate for as long as you want in the future.
- You will be required to verify your account – usually with your social security number or government-issued IDs
#4: OFX
One unique thing that sets OFX apart is that it can provide money transfers to more than 80 countries across the world. It also offers the cheapest service without sacrificing quality. They are also well-known for their high-quality customer service.
OFX doesn’t charge any transaction fee but instead makes its money through the exchange rate markup. However, this markup fluctuates and is usually dependent on the volume being traded and the currency routes.
Unique features of OFX:
- Minimum transfer amount of $1,000 but no maximum amount
- Transfer can be done both on the web and on mobile
- Account creation is free and you can opt out at any time you want
- Transfer is typically between 2 to 4 business days and transactions are only sent to bank accounts
- Customer support is available 24/7
#5: WorldRemit
This company has offices in different cities across the world, including in London and Sydney. Interestingly, WorldRemit provides transfer services to more than 150 countries worldwide. They also offer cheap transaction costs.
They make their money by charging bot a margin on the exchange rate and a flat fee. There are different options available to you to pay for the transfer. This includes bank transfer, credit/debit cards, Android Pay, Apple Pay, and Sofort.
Unique features of WorldRemit:
- Instantaneous transfer
- User-friendly website and app
- Highly competitive fees
No minimum transfer amount but a maximum amount of $5,000
