(Topic ID: 289755)

What is the safest way of a high payment?

By Zevage

3 years ago



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  • Latest reply 3 years ago by ForceFlow
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#4 3 years ago

If you go the route of bank wire, a few things to keep in mind.

I’m going to assume you would be having funds wired to a Euro account?
Unless you have a U.S. dollar account in Europe (I.E. funds would be going from a dollar account to a dollar account), A few things to keep in mind with an international bank wires and exchange rates.

If the funds go from a dollar account (or any other currency) to a Euro account, the banks are going to convert a dollar payment into Euros upon receipt and they will almost certainly NOT use the official rate, or even the middle rate of exchange. You really want to make sure that the buyer uses a method where they buy the Euros ahead of time which locks in the exchange rate and you receive the correct amount. Effectively wiring Euros to a Euro account. If not and the bank converts it at an unfavorable rate you might wind up with a few hundred dollars less on a larger transaction when the payment arrives and is converted. It’s the buyers responsibility to insure you get paid the correct amount in the correct currency. Just tell them to make sure when they send a wire that they are actually buying the Euros up front rather than sending a dollar equivalent.

Secondly, international bank wires are normally NOT direct bank to bank transfers.
What happens is the person sending an international wire orders said wire at their bank to be wired to your bank.
The wire will almost certainly go through an intermediary bank (sometimes more than one). It’s normally one of the big banks in New York like Chase and quite often they will take out a fee along the way for their part in the transaction. It could be as little as $15, sometimes as much as $50.
This doesn’t happen 100% of the time, but it happens on a pretty regular basis.

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