Going Global: Five lessons to ensure a smooth transaction online
Online global transactions can be easily done albeit with a cautious approach
Global remittance has been fashionable long before the augmentation of e-commerce. Transferring money abroad goes centuries back as people have been sending money overseas for various reasons, from property investment to business operations, and even for personal affairs, amongst other foreign matters.
With the exponential growth of e-commerce lately, it has never been easier to conduct local and foreign business as transactions could be completed within minutes with the account of speed, costs, and security. That said, to ensure smooth and secure transactions of large funds over precarious cyberspace, here are five lessons to keep in mind for global transactions.
What to do before transferring money overseas
1. Triple-check recipient details
The first step is always the most important aspect of all business deals. In this case, you need to first confirm the authenticity regarding the person you intend to send the money to. It comes as common sense to peruse all details before you hit that ‘send’ button to prevent any adverse events from happening. Not only do you need to put up with money loss, but you also risk encountering troubles with the person you are sending the money to. From legal issues to delayed shipping, and reputation damages, these matters alone warrant you to be extra cautious when there is a vast sum of money involved.
Triple-checking will properly ensure your transaction to be completed safely, especially for transferring money overseas.
2. Check remittance guidelines
It is to no surprise that financial services are one of the most heavily guarded and regulated industries today, given that most businesses are done online. In the case of the money remittance industry where it was expected to hit $746 billion globally in 2020, certain guidelines have been proposed forward to counteract money laundering and threats of cyberterrorism.
The growth of digital remittance services has led to the emergence of new money laundering risks as it has rendered it easier for criminals to circumvent the identity verification process and even harder for officials to supervise.
Such complications have given rise to Anti-Money Laundering Act (AML), ensuring one adheres to certain guidelines for any transactions. For example, the Customer Due Diligence process must be followed in which identities and nature of businesses involved will be verified. To ensure you do not come off as suspicious of any act of money laundering, it is best to go over the guidelines before proceeding with any transaction.
3. Pay heed to fees
Finalising an international transaction could subject you and the recipient to a certain type of fees, known as transfer or service fees. While it is not always the case, you need to take into account what fees you need to pay and how these may affect the final amount to complete a transaction. There are few types of fees typically present at any international money transfer, including but not limited to the flat service fee. Banks charge the flat service fee and they could largely increase it whenever you are dealing with a large transfer. These fees adding up can cause you to pay more, so always keep in mind and check for all amounts of fees before settling on a payment.
4. Look into estimated delivery time to avoid delayed transfers
Although wire transferring is done conveniently, your funds will take a certain amount of time to reach the recipient. Therefore, you should always check the duration of each transfer provider to ensure the transaction is completed on time.
Keep in mind that international transfer will not be immediate as it typically takes up 1 to 5 business days or perhaps even longer due to various factors, such as the payment method used, currencies involved, differences in time zones, and not to mention the holiday period in certain countries. As a result, it is always wise to cross-check your country and the recipient’s with these factors in mind to estimate and avoid unnecessary delays.
5. Keep an eye out for exchange rates
When it comes to international money transfer, you should always check out the latest exchange rates and compare the money transfer services available to get the best deal that favours your transfer destination and budget. Comparing these services could potentially help you save a ton especially if you are transferring a large sum of money.
Are you planning to grow your business globally this new year? If so, you would probably need to look for the best global money transferring service for employee payrolls, supplier payments and many more. TranSwap offers a quick, safe, cost-friendly way to conduct international transactions with end-to-end tracking. To learn more, send your questions here or get started by clicking here.
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