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Sunday, December 1, 2019

International wire transfer vs. PayPal: What are the benefits and challenges of each method of payment

International wire transfer vs. PayPal: What are the benefits and challenges of each method of payment
Source: www.finder.com

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In order to make a payment in the US most businesses might associate with PayPal, but what about making an international wire transfer payment? Does your business know the difference between these two payment options?

Currency Exchange International helps many businesses save thousands and provides a convenient way to quickly send hundreds of international wire transfers in a safe, secure, and easy to use platform. 

We’re going to provide you with some insight, and highlight the benefits vs challenge for each method of making payments outside of the US, so you can see the clear difference when you choose CXI. 

 

CXI International wire transfer vs. PayPal

 

PayPal Benefits

When your business needs to send an international payment, depending on how much money you send, you’ll pay a fee equivalent from $0.99 to $4.99 of your transaction if it’s funded by your bank account or PayPal balance.

If you pay via credit or debit card, PayPal charges a fee of 2.9% of the transaction amount and a fixed fee based on the currency you're sending can range from $0.99 to $4.99, according to finder.com as of March 28, 2019. 

  • Small transfers. PayPal’s fees are based on how much money you are sending. 
  • Flexible transfers. Not every money transfer service offers direct-to-PayPal or mobile wallet options and recurring payments.
  • Fast, easy transfers. If you just want a simple option to send money domestically or overseas and you already have an account.

International Wire Transfer Benefits

CXI’s international wire transfer solutions leverage its access to a global network of correspondents providing the fastest and safest means to send wires to foreign countries.

Utilizing CXI’s proprietary software (CEIFX) directly, gives businesses a secure, easy to use platform. Additionally, CEIFX integrates into core banking systems to ease processing burdens. CXI’s suite of tools help businesses meet Dodd-Frank Reg. E requirements and Patriot Act/BSA regulations. 

Help streamline your process for sending and receiving international wires with CXI. Check out our full list of benefits your business can enjoy when you choose CXI:

  • Quickly send and receive international wire transfers around the world
  • CXI’s direct wire network minimizes excessive rates and fees
  • Bulk wire processing through file imports and integrations
  • Beneficiary bank and IBAN validations remove most common delays
  • Mitigate risk with user thresholds and IP access restrictions
  • Custom multi-tier system fit any level of approvals needed
  • Intuitive OFAC screening simplify reviewing potential matches

PayPal Challenges

PayPal’s exchange rates are calculated by a financial institution and updated multiple times a day to match fluctuating market conditions. PayPal’s bank adds 2.5% to a wholesale rate price to calculate the service’s retail foreign exchange rate.

Their payment options are limited to hold a balance in their account in 26 currencies. Since it’s a cross-border transaction, it can also be subject to currency conversion costs. Transfer limits for verified account holders are from $1 up to $10,000 in a single transaction. Then you have to take the fees into consideration, according to finder.com as of March 28, 2019:

  • Interchange Fees are set by Visa and MasterCard. They approximately range from 0.20% to 2.00% and vary for different types of cards (for example by categories and brand).
  • Percentage-based fees (such as 3.4%) refer to an amount equal to that percentage of the payment amount.
  • Fixed Fees are based on the currency received, like €0.35 EUR (if recipient is outside of France)

International Wire Transfer Challenges

With CXI there's no challenges when your business needs to send International Wire Transfers. CXI can send payments knowing how much will arrive and have stated costs. 

International Payments Made Easy for Your Business

How CXI Makes International Payments Easy for Your Business

 

 

Visit our case studies and resources page >

Schedule a call to make international payments >

 

About Currency Exchange International
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations and travelers. Products and services for international travelers include access to buy and sell more than 90 foreign currencies, multi-currency cash passport’s, traveler’s cheques and gold bullion coins and bars. For financial institutions and corporations, our services include the exchange of foreign currencies, international wire transfers, global EFT, the purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com

Disclaimer: All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.
Posted By Jacquelyn McMullen at 08:10 AM
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