How to Send Money to Overseas Contractors Without the Hassle

July 26, 2017 by  
Filed under Business Services

If you’ve started a business in the digital age, you’ll quickly realize that moving money overseas is an important component in completing the work you do. Most small businesses begin by hiring contractors from outside their home country, and that’s where the standard digital wallet can help or hinder you as a business owner. Here are some of the everyday challenges folks face when trying to pay the contractors they work with.

Locations

Not every digital wallet allows you to send money to any country, and some will outright refuse to transfer money to a contractor working in a particular country. The first step in working with your freelancer, if you’re not already using some third party to get into contact with this person, is to establish how they would like to be paid. See what the constraints are on your bank, and how you can move money.

If you fail to pay your freelancer on time, even if it’s because you’re having trouble moving money to their country, they may withhold the work they’ve done. If you want to avoid this, make sure you view the FAQ (or contact support) for that payment processor. Ask them if they service the particular country you want to send money to.

Rates and Fees

Flat fees can kill a freelancer’s income, so they may do a job for you but suddenly be unavailable for the next gig. If this happens to you, check your wallet to make sure that the transfer fees aren’t hurting the freelancer’s income. Don’t try and correct this problem by paying the freelancer a few dollars to cover the difference. In some cases, you might actually hurt them worse thanks to flat fee pricing taking a larger share of the higher payout.

There will always be some fees the freelancer (or you) will have to pay to transfer money, but you can find processors and wallets with reduced or minimal fees. The two big ones to watch out for are currency conversion fees and transfer fees to a third party account (such as sending to an account that isn’t a member of the organization you bank with).

Final Thoughts

Paying freelancers will always be a challenge throughout the life of your business, so make sure you do the research now to find a good digital wallet you can use to transfer money. You will save yourself both time and frustration in the long run.

This articles submitted by Charge.com. For six years running, Charge.com has been voted the #1 name in small business credit card processing.

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