In general, we refer to any bank transfers as “wire transfer” and it’s still one of the most popular methods of sending money to your business partners, employees or freelancers. However, there’s a little more to that.
In order for a transfer to go between banks, a certain amount of collaboration is required, and when we’re talking about international transfers, things are even more complicated.
Let’s take a look at the different types of bank transfers, and also see what the best option is.
The 4 Types of Bank Transfers
ACH are probably the most popular choice and it stands for “Automatic Clearing House.” This option is often used to transfer small amounts of money between accounts and usually take 3 to 4 days to arrive.
Commercial Money Transfers
In commercial money transfers, banks are not usually involved. Instead of simply sending the money between accounts, agents or transfer locations are being reimbursed with funds within the system. The money is transferred once to the bank, and then the bank uses its own funds to complete the transaction.
Wire transfers are used to transfer large sums of money between banks, and are the most expensive option. In general, these transfers arrive the same day they are issued, and depending on the bank, you may have to pay a fee of up to $100 per transfer.
International Wire Transfers
International wire transfers work on the same principle as regular wire transfers. However, in order to successfully complete an international wire transfer, you also need a SWIFT code. This allows fast processing for large money transfers.
Give up Any Bank Transfers — Use CollabPay!
The answer to this question depends on your needs. If you want to buy a house or a car, as a one-time purchase, then Wire transfers are the way to go. However, if you have a business and need to transfer money all the time, you may want to check out other options too.
PayPal, Stripe and Payoneer are some of the most popular online money processing platforms. This means that you can manage your funds without needing to collaborate with a bank. Although this is not a long-term solution, it’s something an online business owner would want to consider.
If you need a platform to help you manage your business’ profits and each partner’s revenue, then you need an app such as CollabPay to help you with that. Because it’s seamlessly integrated with the most popular eCommerce platforms, like Shopify and WooCommerce, all you need to do is send out payments directly from the app and that’s it – you don’t need to lose time preparing bank transfers, and you won’t be stressed that the information is wrong and money may end up blocked in the system.
Besides, you get around the standard banking fees. CollabPay offers three subscription plans, depending on your needs, and there are no hidden fees to worry about.