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SEPA

B2B Transfer Fees

By | Money transfer, Outsourcing: an original view

In the corporate world, there are two types of deals, namely B2C and B2B.

B2C

A B2C transaction, or simply, a business to customer transaction is exactly what it seems. It is the transaction that takes place when a certain business deals with a particular person or a group of persons. These “dealings” can be anything from selling and item, or buying rights to a book, providing services or requesting services. Simply put, these are the types of transactions that are conventional and comprehensive. B2C transaction does not necessitate any 3rd party involvement, because the main objective of the business is to deal with customers.

B2B

A B2B transaction, or in other words, a business to business transaction is a term that is used to describe the dealing between a firm with another business in times of procurement. As in, consider a firm, “A”, that manufactures shoes, needs the raw material to build the shoes from. In such times, they contact a third party (referred to as third party because they are not one of the pillar of basic business transaction, i.e. Businesses and Customers). The other business (that works to collect leather), “B”, deals with “A” and supplies them the necessary materials. Of course, B2B transfer fee is involved.

Now these business might be far and wide throughout the world, so b2b transfer fees vary, hence the concept of monetary exchange plays its hand.

FX spread

FX spread, or, “Foreign Exchange Spread”, is the difference between the prices a trader receives when he sells a currency to the market, with the price he has to pay to buy currency from the market. This spread, assists massively in determining the value of one currency in a country that it is not native to.

SEPA Payments

SEPA payments are a great way to settle B2B payments throughout Europe, since it is free. All it takes is the creation of a European account with B2B pay, this gives you the facility of sending euro payments in and out of Europe for not even a single dime.

 

Sending Money to Finland: an overview

By | Banking, Money transfer

Due to the advancement in technology, sending money to Finland is now a piece of cake. Finland is a northern European country that shares its borders with Sweden, Norway and Russia. There are numerous ways through which people can transfer money to Finland and they are discussed below.

Sending Money to Finland with SWIFT

SWIFT stands for “Society for Interbank Financial Telecommunication”. SWIFT facilitates the easy relocation of money from one place to another not by actually moving the money, but by sending and receiving financial messages between the buyer and the seller. Then, the actual relocation of money takes place through wire transfer. Finland is a strong advocate and user of the SWIFT system for the relocation of money. To facilitate the process of sending money to Finland or to receive from there via the SWIFT money transfer, the first thing to do is to determine the SWIFT code. This is a typical format of Bank Identifier Codes (BIC) and it is an exclusive code for a specific bank. A Swift code usually contains 8 to 11 digits. A typical SWIFT code looks like:

AAAA BB CC DDD

E.g.

JSAS KX F1 A41

Sending Money to Finland with SEPA

The usage of the SEPA method is based on the fulfilment of certain conditions. To transfer the money, it is necessary to enter the recipient’s account number in the IBAN format, it is done to route to the correct country without any failure. “Nordea”, a financial service company, offers several alternatives for SEPA payments. Solutions centered on file transmissions allow payments to be entirely computerized, when the amount of payments is extraordinary.

B2B money transfers to Finland

Western Europe is one of the most advanced places when it comes to the use of electronics and computers for financial matters. Especially in Finland, where the government has made it mandatory to transfer all procurement efforts online. Basware, a mega conglomerate for B2B payments has just signed an agreement with an unnamed company to facilitate the process of sending money to Finland. This has created a window of opportunity for many Finns living in foreign countries to send money to their families and loved ones with great ease.

SEPA payments

SEPA payments

By | Banking

A Brief Overview of SEPA payments

SEPA payments are used by the countries within European Union (EU) as well as some other countries outside EU but to which Euro bank transfers are supported. SEPA stands for Single Euro Payments Area. It can be described as a system that is initiated in Europe. It is used to transfer euro money between different banks in Europe.  SEPA supports the transfer of Euro across the border and it is seen to transfer Euro within the area which is similar to the domestic transfer you do within your country.

How SEPA Based Banks Work?

If you are planning to exchange money from any bank which is based in SEPA jurisdiction then it can be said for sure that you will not bear any extra costs than the regular transfers that are done locally. For most businesses and individuals it is considered as a cost-free option.

This money is usually received to another EU IBAN account within two days or even less. The receiving bank may or may not charge receiving cost depending on the policies of the respective bank.

All SEPA countries use the IBAN numbering scheme.

Why should I prefer using SEPA based account?

  • Fast, Easy & Secure:

SEPA has made the money transfers very easy within the euro area. The money that is being transferred by the SEPA based bank accounts is very fast and very easy indeed. In addition to this, the transfer of money by SEPA is even more secure than the regular bank transfers. Improvement is observed in the money that is transferred by bank accounts when they stand their basis on SEPA.

  • Free of complicated steps for new account creation

Usually it is observed that SEPA provides more ease when you are living in any country within the euro area for short term or long term basis. You will not need to create new account there or go through critical or hectic steps for new account creation in a new country rather you can use your old account – the one from your home country.

Furthermore, if you are on a trip to any euro country then SEPA can be found very helpful in getting the required money from your home country. In addition to providing your required money from your home account it may also offer an array of other services.

The SEPA (Single Euro Payments Area) Initiative and Its Advantages

Europe is the second biggest continent on Earth; it roughly includes about 40 nations. These nations are highly industrially developed and so are its people. A few years back, a group of European heads of states sat together and decided to amalgamate these European countries into a single union, called, “European Union”. EU includes 35 countries, which means, not all countries in the continent of Europe are the member of this European Union.

Due to different policies of EU, most of the aspects within these countries have improved. One of these is travelling, now you need to be a member of EU and you can travel throughout the member nations without hesitation. Another aspect of this merger is the currency. The European Union has been successful in introducing a general currency that has united all the member nations on a single platform, known as “Euro”.

SEPA (Single Euro Payments Area) is an initiative by the European Union to transfer monetary funds from one bank account in a member nation to another without much ado. SEPA payments are rapidly becoming the norm for the common people of the member nations because it relieves them off all the hassle for currency conversion, tax issues and prostration to laws of different countries individually.

SEPA payments are a great example of how to reduce the annoyance that the customers encounter while banking. The institution of SEPA payments ought to escalate the concentration of rivalry among banks for clients from corner to corner of different borders within the member nations of EU. For customers and administrations SEPA means low-priced, extra resourceful and more rapid payment transmissions when transferring euros from one EU member to another.

The goal of this initiative is to advance the competence of cross-border outlays and turn the disjointed nationwide markets for euro payments into a solitary internal one. SEPA will permit consumers to make euro expenditures without cash to any person situated anyplace in the zone, by means of a sole bank account and a lone set of payment tools.

 

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