How to Save On Worldwide Bank Transfers

If you are a business owner, and you have been making worldwide bank transfers as a method of paying service providers, contractors, or affiliates around the world, then you probably know that traditional worldwide bank transfers are not the cheapest option out there. 

There is a way to save more on worldwide bank transfers, however, and in this article, we look at how it is done. 

So What is the Answer? 

The first thing you want to do is make cumbersome and costly international money transfers a thing of the past.  These services, offered by companies like Western Union, and by most commercial banks, are designed for low volume worldwide bank transfers – not as a business solution.

The next thing you want to do is ask your bank whether they support international ACH, and what their process is.

Like traditional worldwide bank transfers, international ACH allows you to send money all over the globe.  However, unlike worldwide bank transfers, where the transaction is a direct one, between your bank and the recipients, when you use international ACH, your bank works with an intermediary, or clearing house, who acts as a funnel for the payments. 

This makes it much quicker, and much easier, to make large numbers of payments to contractors, suppliers or affiliates around the world, and it also does not make a difference which banks they are with – the clearing house will distribute the payments to the correct institutions. 

What Are the Benefits Of This Type of Worldwide bank transfer? 

There are many benefits to using international ACH instead of the traditional worldwide bank transfer you are used to. 

The first benefit is, of course, cost.  Where a traditional worldwide bank transfer or wire transfer will cost a lot, each individual transaction made with international ACH costs much, much less. 

The next benefit is that when you use ACH, you can make hundreds of small payments at the same time, and it is much more efficient than sending each one as an individual wire transfer. 

It is a streamlined version of the old way of sending worldwide bank transfers, and it will save you and your business time and money when you need to pay affiliates and contractors around the world.

Who Offers This Type of Worldwide bank transfer? 

Most of the large commercial banks should offer some type of international ACH payment system, as well as the vast majority of smaller banks.  There are also other companies, which are not affiliated directly to commercial banks, which specialise in offering this type of service to companies engaged in global or online business. 

Setting up this type of system is usually fairly quick and easy, and there are options to include an online banking interface, so you can pay your employees, affiliates, contractors and suppliers no matter where you are in the world. 

So if you’re still using the old method of worldwide bank transfer, and paying a fortune while using up your valuable time, maybe it’s time to look at the modern alternative.