Foreign Currency Payments - Importing / Exporting

If you import and pay foreign currency, your bank is probably not the cheapest way to make a payment. Banks tend to charge both the sender and receiver a fee of around $20 each, plus their margin on currency exchange is around 1%+- or worse. So even though you have agreed to pay someone US$100, and you pay NZ$150 + NZ$20 in fees, the customer at the other end might get their US$100 with $10 deducted for "receiving overseas payments".

The same goes if you export, and you want people to pay you in a foreign currency at an agreed price. You don't want to be hit with different fees just because the sender used their bank to initiate the payment.

Currency Online are a great option for dealing with foreign currency issues. There are plenty of similar companies to choose from.

You don't have to be a big money speculator to use these services, anyone can open a free account.

The benefits of using these kind of systems is:

• A smaller fee to initiate outward payments
• No fees on incoming payments
• Tighter margins on currency conversion, eg +- 0.5%
• A potential to pick a rate if the market might match it over a few days.
• For the currencies supported by them, outward payments typically won't incur any fees for the receiver
• Online service
• Fast, you can initiate the currency exchange, setup dispersements in one day. At the same moment, if you are making an outward payment, you can initate your ordinary bank transfer to deposit accounts in their local bank account. The FX company take care of everything as soon as the money is identified in their account, eg next business day. And the receiver would have their payment in cleared funds the following business day.

http://www.currencyonline.com

[Index] [Previous] [Next]