What Are the Drawbacks of a Global Bank Transfer?

When you are looking at sending money internationally in your business, then one of the first things you will probably consider is a global bank transfer. These are one of the best-known methods of sending money internationally, and they are well known for their security. However, there are also drawbacks to a global bank transfer. These are:

• Before you can do a International bank transfer, you will need to have the recipient’s bank account details, name, and their bank’s address and SWIFT, IBAN or BIC code. If you are sending money to someone who does not have a bank account, or in a country where the banking system leave a lot to be desired, this can be problematic!
• In the vast majority of cases, you will need to visit your bank or a third party money transfer service office in order to make a global bank transfer. If you pay your affiliates or contractors on a weekly or bi monthly basis, that could mean a fair amount of time spent in the bank!
• The fees associated with a global bank transfer are generally much higher than those of newer types of international payment are. Both you and your recipient will be paying fees, and if you are paying a large number of people, that can add up!
• There are no mass payment options when you use a traditional global bank transfer to pay your team. That means that each transaction needs to be done individually, and that adds to the time and cost involved.
• When you use global bank transfers, the time between when the transaction is initiated, and when the cash can be withdrawn by the recipient can be as much as a week, or even more. In that time, currency fluctuations may have occurred, and the amount your contractor receives may be considerably less than agreed.
• While International bank transfers are usually secure, there have been cases where they have been used by fraudsters, or where the person that the money was intended for was not the one who collected it. This usually happens with third party services, but it is something to watch out for. 

Global bank transfers have long been an accepted method of paying people around the world. However, just because they are a traditional method of payment, which does not mean that they are without their flaws! 

If you need to pay a global team, you would do better to look into newer, more modern, more efficient and cost effective payment methods, like third party processors, prepaid debit card programs or mass payment systems. All of those are as secure, but they offer significant benefits over outdated payment methods, and they can be achieved from anywhere in the world, as long as you have access to a computer.

Business is changing, and so are the types of payment method and other technologies on offer. Isn’t it time you took advantage of that?