I have lots of responses/feedback mails from my readers stating that my posts needs to be more explanatory in terms of technicality and it is best to reduce the density of topics and split it into different posts. Thanks for all those suggestions and feedback and I will be considering them for my future posts.
This post is about different global payment options available for virtual organization to pay their team. Please also note that these rules and regulations may vary country to country and is good to consult with an expert before opting any of these.
I have listed these payment options in the order of my preference but have not favoured or disapproved any of them.
International Wire transfer:
Wire transfers are the easiest/fastest way to transfer funds globally. Consider the following when you use it.
- Currency of the transfer can be opted by the payee. Often source currency transfer is the best(For example a payee from United States of America can transfer in USD irrespective of the destination currency). Source currency gives the beneficiary the best exchange rates available at their local bank and are often better than selling rates in a foreign country. I have also observed that the foreign currency reaches faster because they use an international SWIFT code to wire transfer.
- A line of instruction that goes along with wire transfer is the key to safe inward remittance. The remittance instruction contains further instructions to the major international branch to forward the remittance to corresponding branch and to the specific account. Do check this with your bank.
Paypal is an Ebay company and have very strict norms regarding payments and adheres to it. It also follows rules and regulations of the beneficiary’s country.
- Paypal has now introduced a system to withdraw to bank account directly. In India it uses NEFT for transfers.
- Paypal has also options to withdraw as cheque.
- They do charge a fee for the transaction made unless it is a premium account and have an arrangement to transfer paypal funds to some accounts without loosing paypal fee.
- Paypal exchange rates are not often par with international exchange rates.
- Verified PayPal account of the beneficiary is best to send regular payments.
Xoom is best suited to transfer funds to some specific countries and have better exchange rates when compared to Paypal account withdrawal exchange rates. Xoom can directly transfer funds from bank account to some selected countries. Points to consider when using Xoom are as follows.
- There is a fee for transferring funds, it varies depending on the mode of transfer, source and amount.
- Xoom also have direct beneficiary account transfer which is more reliable and faster than other mode of transfers.
This is the ages old way but it takes at least 15 to 20 days to reach most of the Asian countries from Europe. It takes another 20 days, if the bank does not have a clearing house inside the beneficiary country.
There are lots of other channels to transfer money like Western Union , remittance websites that do this service and banks .
I urge my readers to enlighten me with more options, if they have exercised/read about them and I will add that to this post as well.
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