Thanks to modern technology, it’s never been easier to transfer money from one person to another. Whether you’re looking to reimburse a friend for lunch or send a freelancer you outsourced work to a bonus for a job well done, there are numerous apps and interfaces out there that can help you out. However, things become a little trickier when you need to send money overseas or internationally, including for business purposes. High service charges, surprise fees, and fluctuating exchange rates don’t allow you the luxury of assuming everything will go as smoothly as usual, but keeping the following options in mind can help take out some of the guesswork of the process.
1. Bank Transfers
Many business owners simply fall back on what works perfectly well the rest of the time if they need to pay an employee internationally: a good, old-fashioned bank transfer. On the one hand, bank transfers are seamless, reliable ways to move money from one place to another, especially if you need to move a lot of it at one time. However, most banks are only willing to facilitate transfers headed toward another bank account. International transfers can also take several days to be completed, as well as comes with high fees you may wish to avoid.
PayPal brings many advantages to the table when it comes to transferring money, especially if the funds need to travel internationally. It’s easy, it’s simple, and it’s fast. (In many cases, the recipient receives the money within seconds.) As the sender, you aren’t strictly limited to sending the money from a bank account either. To complete the transaction, any debit or credit card can be useful if it is already linked to your PayPal account. However, the person you’re sending it to needs to have a PayPal account as well in order to receive the funds in the first place. Plus, applicable PayPal fees can be costly, and some users occasionally run into issues when transferring large amounts. When you are signing up as a business account in PayPal, you or the receiver will be charged 2.9% for the transaction.
Another important thing is that if any suspicious behavior can be seen in your account, PayPal will freeze your account, which means if you are in urgency, still you will not be able to send or receive money.
ShareMoney is a widely trusted money sharing interface that’s designed specifically with international transfers in mind. Users can send money to Mexico, Brazil, Vietnam, Costa Rica, and a variety of other countries. It’s as fast and simple as PayPal and similar methods. However, the associated fees are significantly less, and the exchange rates are a lot more reliable. You also have a couple of choices as to how the money is ultimately delivered on the other end. You can have it transferred into your employee’s bank account, of course, or you can arrange for a cash pickup at a variety of different locations instead. The main disadvantage of ShareMoney is that a few countries can avail the service and there is a limit of money transfer. One cannot send more than $9999 in six months.
4. Western Union
Western Union is among the oldest, longest standing ways to send money from one place to another. As there are many options, still it is very popular. As with some of the above options, senders have the option of using a debit or credit card to send the funds, so it’s convenient on their end. Both the service fees and the exchange rate markups are reasonable, especially in comparison to a bank transfer. You also get to decide whether the funds go to the recipient’s bank account or an established Western Union location. In comparison with other options, Western Union charges less while sending a large amount of money. However, money transfers initiated via Western Union can typically be pretty slow, especially in comparison to some of your other choices.
Ultimately, the best way to transfer money and payments to traveling employees and international associates depends on several factors. It goes without saying that you want an option that’s safe, reliable, and efficient. However, you also need to make sure the money will be sent and received the way you need it to be and in a timely manner that serves everyone’s purposes. One great advantage is that in most cases you will be able to have a live chat or talk to a customer care representative if any problem occurs during the transaction, which is obviously needed.