If you’re selling products overseas as an exporter or eCommerce business or paying overseas suppliers as an importer, set yourself up to avoid the hidden charges.
There are two major costs associated with international money transfers.
- The exchange rate: foreign exchanges rates are an Over The Counter market (OTC). Essentially what that means is that there is no central exchange controlling the rates, so the rates are set up between two parties.
- The transaction fee: fees charged range from zero up towards the $100 mark, depending on the provider you choose and the type of transfer.
When pressed for time, your bank can feel like the best port of call for these exchanges because it’s convenient. But that convenience often comes with an extra charge for service.
“I love the exhilaration of running an export business”
Catherine Cervasio founded AromaBaby Natural Skincare now a hugely successful export of organic baby care products to China over 15 years ago. Innovators in her category Catherine told Small Business First she’s loved the exhilaration of export:
“Being able to travel for business, learn new cultures, new languages, even being able to share my story globally has been so rewarding. It’s really wonderful to see the business you started be held in such high esteem outside your home country.”
When it comes to managing the expense of international money transfers, Catherine told Small Business First the process was definitely a learning experience.
“We have built up solid relationships with several retail and distribution partners, some of whom we have worked with for 10-20 years.”
Money transfer that saves you time and money
WorldFirst is a market leader in exchange rates with transparent pricing of 0.60% or less. They offer money transfers up to 8x cheaper than the banks.
‘Pricing’ refers to the difference between the rate your currency is purchased at and the rate it’s sold to you.
One of the typical big banks will charge between 3-3.5% per cent for the same service.
In addition to being cost efficient, WorldFirst money transfers are fast and secure. Built with intuitive same day account opening you can also make same day payments in 30 different currencies. And given they’re regulated by ASIC, fully licensed with trusted tier one banking partners and have transferred over 150M for more than 250K clients around the world since 2004, you know your money is safe.
Importers can enjoy reduced supplier costs. Exporters can access local currency account details in ten currencies allowing them to collect, convert and make payments from one platform.
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement.
Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed.
All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.
Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.