Advantages of FX Wires

Article provided by Currency Exchange International (CXI)

Today’s customer expectations have never been higher. Transferring money electronically has become simple and intuitive with fewer clicks needed. The question then must be answered: How can we deliver the speed and maintain our customer’s trust when moving money Internationally?

One way to provide faster payments is by sending wires in the beneficiary’s local currency instead of in US dollars (USD). Sending payments in your beneficiary’s local currency can improve the time it takes for the funds to be available, ensure the amount of funds that arrive to the beneficiary, and be more cost effective.

Let’s look at some common customer questions to see how sending FX wires can give you an advantage.

How can I pay my beneficiary quickly?

When paying a foreign beneficiary in USD, funds will likely be converted, which can take longer for them to be available in their bank account. On the other hand, you can minimize delays by sending money in the local currency, streamlining the delivery process, and allowing beneficiaries to receive their funds faster.

How can I reduce fees paid?

Sending USD internationally may involve an additional bank in the routing of your transaction. The receiving bank can also apply a fee to convert your dollars into the local currency. FX wires enable customers to avoid additional fees and reduce payment costs.

How can I get the most for the funds I send?

When a foreign bank converts USD funds it has received into the local currency the bank’s exchange rate is often less favorable than our rate. Customers can compare rates in advance and select the best option by paying in local currency.

How can I send the exact amount of foreign currency?

When sending a wire in USD, the value of the transfer from when it is approved and when it lands in the beneficiary’s bank account can be different due to fluctuating exchange rates. If a wire is sent in the local currency, the rate of exchange and costs are calculated upfront, ensuring the full amount gets to your beneficiary.