Expanding beyond your domestic market and entering the global arena can offer you success and growth. However, starting an international business can be intimidating if you don’t have a reliable method to transact funds across borders. An international business needs a fast and secure money transfer method for paying foreign suppliers, managing payroll for overseas employees, etc. One of the most dependable methods for transacting money across borders is international wire transfer.
Before getting into why wire transfer is the best for making international transactions, let’s understand a bit about what it is.
What Is a Wire Transfer?
Wire transfer is a method to transact money between bank accounts. It is processed using wire networks like Fedwire Funds Service (Fedwire for short) or Society for Worldwide Interbank Financial Telecommunication (SWIFT). Businesses, especially international ones, depend on wire transfers for making their transactions. The number of wire transfers originating is increasing day by day. According to Fedwire Funds statistics, the total wire transfer originated in July 2024 was around 18 million and in June 2024 was around 16 million.
Depending on where the transaction originates and where its destination is, there are two types of wire transfers. One is domestic wire transfer, and the other one is international wire transfer. International wire transfers often need specific codes like SWIFT or IBAN. On the other hand, domestic wire transfers only require a routing number and account number. Zil is a platform from where you can make both international and domestic wire transfers easily and effectively.
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Why International Businesses Choose Wire Transfers?
- Wire transfer helps international businesses pay their suppliers on time, as it is one of the fastest ways to send money internationally. It guarantees that your funds reach the supplier without any delays, no matter where they are. Normally, a wire transfer would take 1-5 business days to reach its destination. You can send wire transfers quickly with Zil.
- International businesses need a payment solution that allows them to move large sums of funds easily when they need to invest in foreign markets. Wire transfer is the best method for transacting large amounts of money as it offers high transaction limits. You can send large sums to your payee without incurring additional fees with Zil.
- While importing and exporting goods, international businesses need a secure method to make payments and receive funds. Wire transfer is a secure way to move money between parties. Zil offers you a real-time tracking feature, which helps you to make sure that your funds are reaching the right person.
- For businesses whose employees or contractors are based in foreign countries, a wire transfer is the best choice for making payments. It offers an efficient way to send payments to employees overseas.
Steps To Make Wire Transfers Easily
- Open your Zil account and go to the homepage.
- Select the bank account from the ‘pay from‘ drop-down.
- Choose wire transfer from the ‘pay as‘ drop-down.
- Enter the amount and other required details.
- Add attachments, comments, and remittances if needed.
- You can either save it to pay later or pay immediately.
- After the payment is initiated, you can click on view payment to check the payment status.
Now, let’s explore the other benefits of using Zil.
Fee-Free Checking Account
For international businesses, the monthly maintenance fees and minimum balance penalties of a checking account can add up quickly due to the high frequency of transactions. The fee-free checking account from Zil helps to reduce the overall cost compared to other checking accounts. The platform offers a checking account where there is no initial fee, monthly fee, or minimum balance requirement.
Zil allows you to open a fee-free US checking account from anywhere in the world. With the platform, you don’t need to be physically present in the US to open a checking account. All you need is a subscription to Zil.
ACH vs Wire
- With Zil, making ACH payments is easy and affordable since the platform is an official member of NACHA. NACHA is the regulating body that controls and monitors the ACH network via which ACH transactions are processed.
- When comparing wire transfers with ACH, wire transfers can be sent both domestically and internationally, whereas ACH can only be sent within the country.
- Since the transaction is only within the country, ACH transfers have less cost than wire transfers.
- ACH transactions are used mainly for paying bills, salaries etc. On the other hand, wire transfers are used for making larger business transactions.
- When considering transaction limits, wire transfers come with higher transaction limits than ACH.
Conclusion
Wire transfers are important for the smooth operations of international businesses. The speed, worldwide reach, and security of wire transfers make them the go-to method for handling large transactions internationally. International wire transfers are the best for paying your suppliers, contractors, and employees based in foreign countries. With Zil, you can make both international and domestic wire transfers.
