Monthly Archives

June 2016

Sending money to Bosnia

By | Money transfer

Have a need to send money to friends or family in Bosnia? If so, there are many different options available. The right option depends on a few factors, including how the recipients are able to receive the money and how much you are looking to send. So, before you settle on the first option available, make sure to look over these different sending money options.


Azimo is a quality service with lower than normal fees, depending on the option you go with. There is one option, which offers a $2.99 fee plus a 1.6% exchange rate margin. The option is a $6.9 fee that doesn’t have any sort of an exchange rate or total cost percentage. Both of these options take about three to five days for the money to transfer over. When comparing money transfer options, you not only need to look at what it will cost but the transfer time. If the money needs to get there instantly, you may want to look for other options, but this one is on the lower end of fees when sending money to Bosnia.

Western Union

Western Union is possibly the longest tenured option available to you. WU has been around for over a century as everything from a mail currier to financial service. While you always need to weight it against how much money you are transferring. Western Union will cost you a $5.00 fee but there is no exchange rate margin. On top of this, the transfer will occur in less than 24 hours. With Western Union though there does need to be a set location around both you and the recipient in order to pick up the money.

Small World FS-LCC

Both Western Union and Azimo have the lower fees and exchange rates. This helps you save money whenever sending it internationally to locations such as Bosnia. Small World FS-LCC has the next lowest total cost percentage behind these two. With Small World FS-LCC the fee might end up being lower, again based on how much you intend on transferring. It comes with a $3.45 fee and a three percent exchange rate margin which comes to a total cost percent of four percent. It will take a bit longer for the money to transfer over though. It will transfer at some point within the month. This is more of a direct, physical money transfer option, if the recipient doesn’t have a traditional bank account for SEPA financial transfers.

Virtual bank accounts for cash management

By | Banking, Money transfer

A virtual bank account has the potential to significantly improve a company’s cash collections. Enhanced automation and accelerated cash centralization adds up-to-the-minute liquidity to enterprise accounting operations. For this reason, electronic payment via virtual banking is fast becoming the preferred source of payment across the globe.

Which payment instruments availed to customers for response to remittances can have a significant effect on an eCommerce or traditional company’s ability to improve cash flow performance.

How does a virtual bank account work?

Like traditional bank accounts, virtual bank accounts can be set up to receive paid in funds. Virtual bank accounts also enable an account holder to utilize the bank account number as a payment reference in reconciliation of intraday and end-of-day collection records by way of an automated reporting feature. For exporter merchants, a virtual account offers a solution to acceptance of multi-currency payment in international and eCommerce trade. Pricing of virtual bank accounts is charged on a per account basis or a per sweep basis.

Promoting Transaction Security

Virtual bank account architecture is supported by International Bank Account Number (IBAN) system transaction coding. Society for Worldwide Interbank Financial Telecommunication (SWIFT) system IBAN accord individual identities to each bank branch within the network. IBANs identify virtual accounts with designated codes used between two banking institutions to transmit transaction data or transaction communications. During a transaction, virtual IBANs verify settlement account numbers held by a corporation or business.

Virtual Accounts are Data Value Added

Remittance information gathered via a virtual bank account can be fed into an enterprise system automatically for reconciliation and control of financial accounts and outstanding invoices. Less expensive for businesses than manual reconciliation, virtual bank accounts can boost the efficiency of an enterprise, by reducing the cost, time, and error quality control associated with accounting and reporting. Electronic remittances may also support rationale for a company’s investment in new technology. Data value added transparency is the end result. When it comes to regulatory adherence to financial control, companies employing automated accounts receivable processing are more likely to survive an audit.

The Pros and Cons to Virtual Bank Accounts


The use of virtual bank accounts for collections and transactions enables a company to resolve barriers to to the account receivables reconciliation process by way of cash management centralization. For companies with multiple divisions, virtual account management enables a more effective and efficient method of managing a cash in the interest of on-time delivery.

The utility of virtual accounts can also be seen in implementation of payment gateway functions as part of a company’s value chain. The integration of a virtual bank account as part of a company’s enterprise system serves to decrease operational costs and transaction risks related to accuracy of account receivable reconciliation. The result: customer credit limit advancement and increased sales by synchronizing the financial supply chain with order operations.


One of the cons to using virtual bank account numbers to conduct business, is the pass-through aspect of a centralized, virtual bank account as cash account center for operations. Virtual accounts depositing transactions into a company’s centralized account do not hold value the general ledger at banks. This can cannibalize the fee stream from company division accounts, as well as cash pool sweeps. Yet there is still an upside in that bank revenue is likely to grow from transaction sweeps from division virtual accounts to header accounts, which provides cash flow for parent company operations and investment.

Virtual bank account providers

In Europe Barclays and BNP Paribas are two giant banks providing virtual bank account solutions. If you’re looking for a more affordable solution B2B Pay is worth checking out.


What are IBAN numbers?

By | Banking, Money transfer

Maybe you were told that you need an IBAN number. But you have no idea what an IBAN number actually is and would like to know what it is. Well, an IBAN number is defined as being an international bank account number. In fact, it happens to be a number that is assigned to all of the bank accounts that exist within all of the EU countries.

An international bank account number is comprised of a code that provides the identification information in regards to which nation the bank account originates in, the actual bank that holds the particular bank account of a person or company, along with the provision of the information of the bank account number as well.

One of the primary purposes for having an international bank account number is that this does tend to make it much easier to be able to perform the completion of cross border payments more efficiently and much more quickly. Thus an international bank account number does prove to be a very good and convenient thing to have, since it is very beneficial for making payments and sending money from country to country.

So it is only natural for one to wonder how an international bank account number is actually constructed, which we will attempt to explain here for the clarity and understanding of those who are curious about such matters. Well, it is important to first of all note that an international bank account number contains up to a maximum allowance of the usage of thirty-four alphanumeric characters. This is the standard that all banks must comply with.

The structure of an international bank account number is designed to include two letters that represent the home country where the bank account originates, such as “IE” to represent the nation of Ireland. There are two numbers that are designated to be set forth as the control key. Now there is the remainder of a maximum of thirty alphanumeric characters that are used to provide identification about which bank holds the account, along with the provision of the regular bank account number.

Note that you do not assign an international bank account number yourself. It is impossible for you to do this task yourself, as it is the bank that assigns this type of number to each of your accounts that you register. And it is important to note here that each bank has its own method of assigning an IBAN.

So with this information, you will be now more informed about an what an IBAN is and why you need one. Once you start using yours for cross boarder payments or for sending money, you will see how beneficial it really is for you.

B2B Payment from Europe to India

By | Banking, Money transfer

B2B Payment from Europe to India: for an Indian exporter, what are good ways to receive money for goods and services exported to Europe?

Europe is the most advanced continent in the world in terms of infrastructure, finance, science and education. The reason for all this success is the fact that it is the hub of all trade and commerce in the entire universe. There are countless European companies throughout the continent that conduct trade intracontinental as well as intercontinental. Due to the amalgamation of most of Europe into a single union called European Union, the trade and business conducted within the continent has been made pretty comprehensive. Most business owners can now relax when it comes to worrying about the rules and regulations of all these countries as a whole because the EU oversees all transactions.

On the other hand, import and export between countries from outside the European Union and the countries that are part of the European Union, are comparatively complex. But fortunately, carrying out trades and the relocation of money from one place to another has now been facilitated by different payment gateways. Payment gateways, are exactly what they sound like, they are the gateways or the medium through which you transfer money from buyer to the seller, or seller to the buyer (as applicable).

In order to select an optimal payment gateway that facilitates the transference of your finances, it is recommended that you take a few issues under consideration.

Geographical Location of Your Business

It is a common fact that not all of these payment gateways support transactions in all the countries of the world. Some gateways support some countries, while they do not support other countries. So it is imperative to figure out the payment gateways that actually support transactions in the country that you conduct your business from.

The mode of payment

The way that you like to conduct your trade or the manner in which you wish the money to be transferred, plays an important role in determining which payment gateway you should opt for. This is because, some of these gateways support credit cards, and some do not. What if you like to conduct your business through credit cards, but could not because the gateway you opt for does not support that feature.

Currency Exchange

You need to care for the comfort of your customers too. Opt for a gateway that supports exchange of monetary funds in different dominions.

Once you are done with decision, you can decide your payment gateway by weighing the pros and cons of different gateways that fulfill your criteria.

Pay Zippy

Pay Zippy does not charge a single dime as its set up fee. Its service charges via debit cards are 0.75% for a transaction below 2000 Indian rupee. While for transactions that are greater than 2000, cost 1%. For Credit cards, the service charges are 3.5% for transaction in the range of 0-5 lakh rupee, and for 5-10 lakh rupee, it costs around 3.25%. Similarly, for transactions between 25 to 100 Lakh, it costs 2.5%.

PayU India

There are three categories of customers in PayU India, namely;

  • Economy
  • Silver
  • Gold
  • Platinum

The economy category requires 4500 Indian rupee as set-up fee, while the set-up fee required for silver, gold and platinum is 9900, 19900, 29900 respectively. Similar to Pay Zippy, PayU India also charges 0.75% for transactions below 2000rs and 1% for transactions over 2000rs via debit card. Conversely, for transactions involving credit card, 3.9%, 3.25%, 2.9%, and 2.5% is charged as service charges for Economy, Silver, Gold and Platinum categories respectively.


Similar to PayU India, DirecPay has 4 categories of customers, namely;

  • Basic
  • Advanced
  • Professional
  • Corporate

As setup charges, basic category requires 6000 rupee, while 12000, 24000 and 36000 are charged for Advanced, Professional and Corporate categories respectively. The debit card charges for all transactions are 1.25%. While on the contrary, for credit card transaction, 5.5%, 4.5%, 3.75% and 2.75% for Basic, Advanced, Professional and Corporate category respectively.