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Learn More: Online Wire Transfers

Online wire transfers are fast, reliable and secure electronic payments sent directly from a PC or mobile device.

Our "Learn More" series provides businesses with an introduction in subjects of foreign exchange and international payments.

Advantage Of Online Wire Transfers

  • Online wire transfers can be made directly from a PC or mobile device, using an online payments platform. No need to make time-consuming visits to a bank or wire transfer operator.
  • Payments can be made in all major currencies and many minor ones. Online wire transfers can be sent to or received from any country where there are correspondent banks.
  • Online payment platforms may offer the ability to lock in currency exchange rates, so there are no nasty surprises on bank statements.
  • Online wire transfers can be particularly helpful to businesses trading with emerging or frontier market countries, since they can speed up the flow of funds through the business.
  • Online wire transfers are great for urgent payments in US dollars, as funds typically reach the recipient the same day. Can help businesses avoid penalties for late payments and obtain discounts for timely payment.
  • Online payment platforms may offer the potential for more accurate and less manually intensive cash flow management and reconciliation by integrating online wire transfers with invoicing and cash management software.
  • Peace of mind from using a secure and reliable online wire transfer service for domestic and international payments.

"These electronic international payment solutions aim at improving the efficiency of foreign currency transactions and hold supplier data so that invoices can be settled in just a few clicks - making reconciliation for importers effortless."1

Online Wire Transfers Benefit Businesses That:

  • Have customers and/or suppliers to whom the convenience of making/receiving payments online is attractive.
  • Need to be able to make domestic and international payments whenever it suits them, rather than being restricted to bank opening hours.
  • Want to manage their business from their PC or mobile device and make and receive payments while on the move.
  • Want to integrate payments and receipts with other online business functions.
  • Want to control cash flow and manage FX rates directly themselves using an online payments platform, rather than being dependent on bank statements.

"Today, money can be sent online to another country in minutes. People can transfer money directly from their bank accounts, or use a credit or debit card. There is no need to visit a bank – money can be sent directly from a mobile device or laptop computer."2

Points To Consider

  • Online payment platforms that manage regular payments will need to keep records of payee bank account details. There may be data protection implications and need for increased security.
  • Online platforms typically notify sending and receipt of international payments when they are made. However, the funds may take several days to appear in the recipient’s bank account, depending on the destination and the complexity of the correspondent banking network over which they travel.
  • Online payment platforms can enable businesses to lock in exchange rates prior to payment, but they cannot eliminate the risk of gains or losses from FX movements.

"With a well-thought-out fraud prevention strategy supported by systems that give the security and control you need, you can minimize the cost and risk of fraud for your business."3

Frances Coppola - The Author

The Author

Frances Coppola

With 17 years experience in the financial industry, Frances is a highly regarded writer and speaker on banking, finance and economics. She writes regularly for the Financial Times, Forbes and a range of financial industry publications. Her writing has featured in The Economist, the New York Times and the Wall Street Journal. She is a frequent commentator on TV, radio and online news media including the BBC and RT TV.

Sources

1. The Emergence of Electronic Funds Transfer and its Role in Wiring Money Online - https://www.americanexpress.com/us/content/foreign-exchange/articles/role-of-electronic-funds-transfer-in-wiring-money-online/
2. How Tech Innovation in International Money Transfers is Improving Business Efficiency - https://www.americanexpress.com/us/content/foreign-exchange/articles/innovation-in-money-transfers/
3. Tips For Avoiding Online Fraud - https://www.americanexpress.com/us/content/foreign-exchange/articles/tips-for-avoiding-online-fraud/

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