It Pays to Shop Around Before Making That Wire Transfer | AccountingWEB

It Pays to Shop Around Before Making That Wire Transfer

Before you make your next domestic or international wire transfer, industry analysts recommend that you shop the rates and delivery schedules offered by banks and private systems. The difference in price and service could really affect your bottom line.

While most private systems like Western Union offer same-day service and most banks require one or two business days to complete a domestic transfer, the price variance between the two is significant. Banks typically charge a flat rate for transfers, while Western Union's rates climb as the dollar value of the transaction increases.

For international transfers that involve currency exchange, the experts recommend comparing rate differences by checking with commercial banks, private systems and currency houses such as Thomas Cook. Regardless of your choice, you will most likely be charges for the cost of the transfer and a minimum of one percent of the dollar value for foreign exchanges.

Experts also recommend looking up the wholesale exchange rate published in newspapers and using this information to shop for the best rate.

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