International Money Transfer
by Raxx · in General Discussion · 12/03/2005 (2:27 pm) · 9 replies
Hello, I'll just dive right to the question. What's the cheapest, easiest, and/or safest form of money transfer for people who do contract work with others from another country?
Money order, check, wire transfer, paypal/online alternative, does anyone have experiences with the mediums and can offer advice? I've been through wire transfer and paypal before, they are downright terrible in different ways.
Paypal has zero support for electronic goods-related issues, and banks charge outrageous amounts of money for wire transfers.
All I can really think of is doing it by money order. Between two different types of currency and of course internationally, what's the best service out there?
Money order, check, wire transfer, paypal/online alternative, does anyone have experiences with the mediums and can offer advice? I've been through wire transfer and paypal before, they are downright terrible in different ways.
Paypal has zero support for electronic goods-related issues, and banks charge outrageous amounts of money for wire transfers.
All I can really think of is doing it by money order. Between two different types of currency and of course internationally, what's the best service out there?
About the author
#2
Ultimately, my suggestion would be to find a bank that does business in both countries you need to transfer money to/from, assuming it's the same country. For example...if I regularly transfer between myself and one developer located in...say...Tokoyo...Bank of America does business there. It's a straight account-to-account transfer that can be done online with minimal fees for conversion. Stick with big banks if you need multiple countries to keep the conversion fees to a minimum...the more $$$ conversions the bank does in a day, the cheaper their conversion rates will be.
A smaller off-shore bank may do you right for areas that you can't find a major bank. They tend to cater to international businesses and deal in multiple currancies, though their fees may be slightly higher. Opening an account can generally be done online with a minimial opening deposit. If you're in Florida, you're set...they have the largest number of off-shore banks (dealing strictly with international business) per-capita.... The catch here is, each member of your team should have an account at the same bank, then transfer funds online as needed. When they want a deposite, you link that account to your "home" bank...should be free at most big banks....is for me, anyway, but then again, I use a Credit Union now. I don't remember having to pay at Wells Fargo or Bank of America....Bank One was by far the most expensive bank (personal and especially business) that I've ever seen.
Another option might be to open a Money Market account at an online securities firm. Most give you checks...most allow wire transfers (free for xx/month). Higher interest rates there, too. :)
Lots of options.... Boils down to your needs...how much $$$, how frequently, how many people/countries...per month...
12/03/2005 (3:41 pm)
Personally, I use PayPal. I have several reasons for this...simplicity being the #1. I can send/receive in whatever currancy they support, and have a running balance on all of them, so my conversions are kept to a minimum. The #2 reason is because I travel internationally quite extensively, and having the currancy on my PayPal account is quite a convience for me. Not many people are really in a situation like this, though... By the way...while their conversion rates aren't the greatest, they ARE just slightly better than what an ATM will give you in a foreign country, and far better than an Exchange service will offer....and ATMs generally give the better rate, depending on the bank (lower overhead = fewer fees).Ultimately, my suggestion would be to find a bank that does business in both countries you need to transfer money to/from, assuming it's the same country. For example...if I regularly transfer between myself and one developer located in...say...Tokoyo...Bank of America does business there. It's a straight account-to-account transfer that can be done online with minimal fees for conversion. Stick with big banks if you need multiple countries to keep the conversion fees to a minimum...the more $$$ conversions the bank does in a day, the cheaper their conversion rates will be.
A smaller off-shore bank may do you right for areas that you can't find a major bank. They tend to cater to international businesses and deal in multiple currancies, though their fees may be slightly higher. Opening an account can generally be done online with a minimial opening deposit. If you're in Florida, you're set...they have the largest number of off-shore banks (dealing strictly with international business) per-capita.... The catch here is, each member of your team should have an account at the same bank, then transfer funds online as needed. When they want a deposite, you link that account to your "home" bank...should be free at most big banks....is for me, anyway, but then again, I use a Credit Union now. I don't remember having to pay at Wells Fargo or Bank of America....Bank One was by far the most expensive bank (personal and especially business) that I've ever seen.
Another option might be to open a Money Market account at an online securities firm. Most give you checks...most allow wire transfers (free for xx/month). Higher interest rates there, too. :)
Lots of options.... Boils down to your needs...how much $$$, how frequently, how many people/countries...per month...
#3
I'm told it's better (for me) if he actually pays me in
01/13/2006 (5:18 am)
I'm in the UK and am doing some freelance/contracting work for someone in the US, for an agreed cost of $1000US. Can anyone provide real-life estimates for what I'll actually get using either wire transfer or PayPal?I'm told it's better (for me) if he actually pays me in
#4
01/13/2006 (6:40 am)
A quite different way is to both register at Plimus.com - sender and receiver. Within Plimus you have the ability to transfer from one account to the next one. They offer quite nice services. I use them for all my e-commerce transactions. Easy and cheap.
#5
Paypal isn't the safest as they reserver the right to withhold payment if they thing there is something dodgy going on :( In which case they may keep your money.
01/13/2006 (8:13 am)
I paid one of the coders I'm collaborating on a contract with $2100 last month via paypal and it cost him 5 pounds to transfer. Paypal did phone and ask him what the money was for, and the time it takes is quite long. 5-7 days to get the funds to his paypal cleared, and another 5-7 days to get it transfered to his bank account. It does seem to be by far the cheapest way though.Paypal isn't the safest as they reserver the right to withhold payment if they thing there is something dodgy going on :( In which case they may keep your money.
#6
01/16/2006 (12:19 am)
That does sound cheap. But are you sure they didn't incorporate extra charges into their exchange rate - was it a competitive rate? You made the payment in Dollars and let PP convert it right?
#7
01/17/2006 (7:32 pm)
As I've said before, I use PayPal quite a bit, simply because of their international currancy options. (I travel internationally quite extensively.) I have found their rates to be consistantly competitive with major banks (ATMs generally giving the best exchange rates) and always (so far) well below what a money-changer will charge. So far, I have found them to be on-par with the bigger and cheaper financial institutions.
#8
01/20/2006 (2:56 pm)
I just made a transfer to the UK (US$ to Euros), and there was no fee beyond the exchange rate.
Torque Owner Magnus Blikstad
Basically I'd say you're stuck with paypal or wires. Both work okay for me even though they have their fair share of problems.