What You Need to Know about Global Payments
Technology has made transferring funds overseas easier, faster and safer. However, if you are new to the process you may wonder how to send funds and which service to choose. In addition to sending a cheque, there are two primary ways to make global payments: wire transfers and electronic funds transfers (EFTs).
A wire transfer, or wire payment, is a type of EFT, and is the most reliable way to transfer funds overseas. A financial institution will process the wire transfer by using a secure system that is managed by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The details you provide will only be shared with the institutions or person who is processing, receiving or sending the transfer.
Some countries do have extra regulations in place to monitor safe transactions. Sometimes, the receiving or intermediary financial institution will ask what the reason for the payment is.
Electronic funds transfers are a fast method of sending funds overseas. You can make these transactions online, by telephone, or through a financial institution. Payments can take between one and eight business days to process, depending on the country you are sending funds to. Online transactions are usually the fastest way to process a global payment
For both of these methods you will need the payee’s banking information, including:
- The payee’s account name
- The payee’s account number
- The routing (SWIFT, ABA etc.) code for the payee’s bank or if this is unavailable, the bank address
You will need to check the requirements of each country when sending international payments. Some countries will ask for additional information.
Receiving an International Payment
An electronic transfer is a fast way to receive a payment and funds are automatically converted to the currency of the receiving bank account at the current rate of exchange.
You will need the following information to receive the funds:
- Your bank name
- Your account name
- Your bank’s SWIFT code
- Your International Bank Account Number
With so much money being sent across borders, new financial regulations have been put in place to help mitigate unfair practices. Financial companies are required to disclose fee costs before processing a global transaction, and they must have a process in place to handle errors and disputes.
Access to Customer Support
With many online services, accessing customer service can be difficult and faceless.
At Firma, customer service is our priority, and you can be sure all your financial transactions are processed with the utmost discretion and security.