What Is a Local Bank Transfer?

If you work with affiliates and contractors in your home country, then a local bank transfer may be the solution you are looking for to pay them.  In this article, we look at what a local bank transfer is, and what the pros and cons are. 

What Is a Local Bank Transfer? 

A local bank transfer is a method of transferring money from one bank or account in your home country, to another bank or account in your home country. 

Because there is less paperwork and hassle involved in this type of transaction for both banks, this type of transfer is usually cheaper than an international bank transfer. 

What Are the Pros of a Local Bank Transfer? 

If you need to pay people in your own country, then the following points are in the favor of using a local bank transfer: 

• It is secure.  Because you need the person who is receiving the money’s bank account details, there is no chance that your money will end up in a different account, or, as in the case of a check ‘lost in the mail.’
• Because you are transferring money that you have from your bank account to another, there is no risk of bounced checks, and the fees associated with them.
• If you are transferring funds between two branches of the same bank, transfers can be virtually instant, whereas two branches of different banks may take a day or two to process the transaction.
• There are several methods you can use to complete this type of transfer. 

Those are some of the benefits of using local bank transfers to pay local affiliates and contractors.  Now let us look at the down side. 

What Are the Cons of a Local Bank Transfer? 

Everything has a downside, and a local bank transfer is no different.  It is always worth knowing what you are facing beforehand, however, so here are the cons of local bank transfers: 

• In some cases, you may need to go into your bank in order to set up a transfer facility, or to complete the transaction itself.
• You will need to take the time to get each person you need to pay’s banking details, and to update them if they change.
• This type of money transfer is not automated, so there is a lot of human involvement.  If you are processing a lot of transactions, that can be very time consuming.
• There is often a charge involved in both making, and receiving this type of local bank transfer, so both you and your affiliate or contractor may end up paying for the transaction.
• Fees, particularly if you visit your branch to do this sort of transaction, can be quite high.

There are always both positive and negative aspects of a particular payment method.  However, if you are paying only a small number of local contractors or affiliates, then a local bank transfer may be a short-term solution, until you can find something more efficient and cost effective.