5 Old Ways Businesses Still Use for International Payments

If you're doing business internationally, you need to be able to send and receive payments quickly and easily. However, not all payment methods are created equal. Some are outdated and can cause delays, fees, and other problems. Here are five old-fashioned payment methods you should avoid—and what to use instead. 

Telegraphic Transfer 

A telegraphic transfer (TT) is a type of international wire transfer. In the past, this was the most common way to send large sums of money internationally. Today, however, TTs are slow, expensive, and often involve intermediary banks that can add even more fees. 

Checks 

While checks are still used for domestic payments in many countries, they are generally not accepted for international payments. This is because they can take weeks or even months to clear—and there's always the risk that they will get lost in the mail. In addition, banks typically charge high fees for processing international checks. 

Money Orders 

Like checks, money orders can take a long time to clear and there's no guarantee they will ever reach their destination. In addition, money orders limit the amount of money that can be sent in one transaction. For these reasons, money orders are generally not a good option for international payments. 

Bank Drafts 

Bank drafts are similar to checks but are typically used for larger sums of money. Like checks and money orders, bank drafts can take a long time to clear—sometimes up to six weeks. In addition, bank drafts may be subject to additional fees from intermediary banks. For these reasons, bank drafts are not a good option for international payments either.  

Wire Transfer Fees  

While wire transfers are faster than TTs, they still involve numerous steps and can take several days to complete—not to mention the fact that they often come with high fees from both the sending and receiving banks. In addition, some wire transfer services limit the amount of money that can be sent in one transaction. For these reasons, wire transfers should also be avoided for international payments whenever possible. 

Conclusion:  

There are many different ways to send payments internationally—but not all of them are created equal. Some methods, like telegraphic transfers and checks, are slow and expensive; others, like money orders and bank drafts, come with high risks; and still others, like wire transfers, come with high fees. The best way to avoid these problems is to use a modern payment method like MTFX. It is fast, convenient, and doesn't charge any hidden fees. So if you're looking for a better way to send payments internationally, give MTFX a try today.