Oct 15, 2024 ArticlesTravelWire FeesPayments
Case Study: How can you reduce your wire transfer fees with Flowbrite?
Making international wire transfers can be challenging and expensive. Not only are there often high foreign exchange margins hidden within the exchange rates, but there can also be excessive wire transfer fees applied on domestic and international payments. In isolation these wire transfer fees might seem low, however they soon add up and could be costing you and/or your business thousands.
What are wire transfer fees?
Wire transfer fees are typically one-time, fixed charges added to international payments that you make and receive. These fees typically range anywhere from $5 to over $75 and are non-negotiable. Meaning that in some instances they may even amount to more than the value of the payment! Which is crazy!
Why are wire transfer fees an issue?
These fees are frustrating for two reasons, they're expensive and affect your margins. Lets imagine the following example of a travel business making monthly international wire transfers from the US to Africa in USD:
| Total value of wires, per month | 100,000 USD |
| Average payment value | 2,000 USD |
| Number of transfers, per month | 50 |
| Wire transfer fee, per transfer | 50 USD |
So what fees are they paying?
| Total wire fees, per month | (50 * 50 USD) = 2,500 USD |
| Effective cost | 2.5% (approx) |
Ouch! That's a lot!
We encourage you to check a few of your last few payments to see how much you're paying in fees and calculate your effective own cost! You might be surprised.
What is the Flowbrite solution?
At Flowbrite we believe wire transfer fees charged to customers far exceeds the true costs and think the market needs a shake-up.
By utilizing Flowbrite's extensive global banking network, our clients can seamlessly send and receive funds via local payment networks.This eliminates the need for complex cross-border transfers, saving both time and money.
Here's how it works...
- Accept local payments. Avoid receiving fees in EUR, GBP, USD and CAD by accepting payments using local networks into your accounts. (SEPA Credit Transfer, UK Faster Payments, Fedwire, ACH, IAT and EFT)
- Pay out like a local. Avoid intermediary bank fees for you and your beneficiaries and send payments to over 50 countries using local networks in the US, Canada, the UK, Eurozone & Nordics, India, Singapore, Hong Kong, Indonesia, Malaysia and the Philippines.
- Use SWIFT for the rest. Pay to over 180 countries via the SWIFT network at great rates (just ask us), and track the payment directly from your dashboard using our SWIFT Payment Tracking tool.
This efficient approach can mean faster transactions and lower fees compared to traditional international wire transfers.
Additionally, you'll gain free access to our comprehensive online payments dashboard which allows you to...
- Store beneficiary information for quick and easy future payments
- Convert currency at competitive exchange rates.
- Hedge against currency fluctuations by utilizing forward contracts.
- Access many other valuable features to streamline your international payment processes.
By choosing Flowbrite, you can save money and simplify your international payments. To find out more please get in touch with one of the team!
Piqued your interest?
Don't let wire transfer fees get you down!