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Money transfer

Virtual bank account in Ireland

By | Money transfer

Banking is going through a revolution. The fintech revolution. Instead of branches and brokers you can simply obtain financial products through online interfaces. This saves a lot of time and money. It has also become a lot easier to open bank accounts abroad. In 2017 it will become possible to open a virtual bank account in Ireland through B2B Pay.


There are different ways to send international payments to other countries like Ireland. When you make international payments you will need the full name and address of the recipient. The transaction requires you to provide the business or person’s IBAN or International Bank Account Number and name of the bank the recipient uses. Others details you will need to provide are the BIC Bank Indentifier Code and SWIFT a clearing code. The last detail is the amount you want to transfer.

The International Bank Account Number, Bank Indentifier Code, and SWIFT codes make transfers more secure and faster. They keep payments from being delayed or rejected. When sending money across borders there are often fees involved in the transfer. These fees are banking fees and exchange rate differences. Fees vary depending on the service used and bank. Exchange rates will vary depending on the country you send the payment to.

What Type of International Payments Are There?

One common type of payment is a SWIFT payment. It stands for the Society of Worldwide Interbank Financial Communications. This system is designed to transfer money between different countries. A payment often takes one day within Europe and longer from other countries. There are fees associated with this service.

SEPA is a European banking effort to make electronic payments in Europe simple and easy. To make payments using this system you will need an International Bank Account Number and BIC to make or receive European payments. The Irish branch Nationwide UK Ireland sends credit transfers through this system.

Virtual Bank Accounts

A virtual bank account through B2B Pay let’s you get the exact service you want without dealing with a standard bank account. It provides a simple way to do business without bank statements and audit reports. If you want to collect payments or are business without heavy volume you may want to delay using a traditional bank account. With a virtual account you can receive payments without fees.

If you are not a resident this is an option to consider. B2B Pay does a compliance check and issues you an International Bank Account Number. This number can be used on invoices and contracts with customers. You can transfer money from all 34 countries in Europe. It will transfer the money to a domestic bank account for a better fee. It is easy to set a up and account and requires no maintenance fees.

When the money is transferred you will get a notification Many virtual banking services offer direct deposit, money transfer, and mobile banking services.

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

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

Pros

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.

Cons

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.

DirecPay

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.

B2B Pay – Exports to Europe Made Easy

By | Banking, Money transfer

B2B payment simply refers to the business transaction between 2 businesses for the completion of a task. For instance, a company A makes shoes, but to make shoes, it needs leather. Conversely, a company B specialises in the accumulation of leather. In order to fulfil its purpose, company A needs leather from company B so that they can create shoes. The relocation of money in this whole scenario is referred to as B2B pay, or Business to Business pay.

b2bpay-logo

B2Bpay.co is a joint venture of innovators and entrepreneurs from Finland, New Zealand, India, Holland and Brazil. The basic idea of the site is to help exporters receive money. We provide exporters with a virtual bank account inside the European Union and then transfer the incoming money to the exporter’s local bank account in for example India or Brazil.

When an investor wants to relocate money between European countries and India, he or she is required to pay 3 to 6% in terms of charges for the relocation. That does not seem to be the problem for B2B Pay, since B2B Pay transfers money to and from these countries at the rate that is below 1%, which means you save almost 80%.

Transparency about fees

In its entirety, Europe has a cumulative sum of nearly 200,000 banks; all of these banks have variable fee plans, structure and processing times for transactions. Exchange rate plays a vital role in this whole situation, for instance if you receive an amount from Europe, they will only initiate the transaction by using a payment order in their bank. Usually a fixed charge is deducted for the services, but the big trade-off is the exchange rate. The bigger the difference in exchange rate, the bigger the difference in the total amount sent and total amount received. This is a reason in potentially losing hundreds of euros. On the other hand, B2Bpay believes in transparency about charges. They claim to provide the best business in town with the best rates in the market. This can be proved by the fact that their rate for India is only 0.8%. Which means, your costs are reduced by up to 80%.

Annually, more than 100,000 small exporters and businessmen, send goods and provide services to their clients in different parts of Europe. These transactions and deals are carried about in a similar manner, the two parties meet, agree on a deal, sign documents that make the transaction official. The exporter then exports the product or the service to the importer, while the importer returns the favour with money. As expressed earlier, all the payments that the importer makes, are made with his or her local bank, while the exporter bears all the cost related to the transaction.

No more overpaying

The real question is, how does B2B Pay help you in avoiding such circumstances where you have to overpay on transactions to receive your money?

To take care of all the hullaballoo, B2B Pay conducts all necessary checks when it registers you as a customer if you sign-up. Additionally, it also adds information about your bank account number into its database system.

B2B Pay IBAN number in Europe

To receive money in any country associated with the European Union, B2B Pay also provides you with a European IBAN bank account number. An IBAN number is your key to keep track of your transactions and your money. Thanks to SEPA the very IBAN number can be used in all 34 states under the banner of European Union for absolutely free.

When the money arrives in your European bank account, B2B Pay sends it to your local bank, since they already have your local bank account number. Additionally, their fee for this transaction is 80% less than the lowest fee offered by any other service provider of the same genre. This guarantees a saving of 2-5% on the value of transaction. Of-course, this will directly impact on your profit by 10 to 20%.

In conclusion, when you sign up for B2B Pay, you get to take a compliance test only once. It also supports profitable currency conversion and payment to your original bank is so much simpler. Furthermore, it provides you with a European IBAN account number that sets up your European transactions pretty neatly.

https://www.b2bpay.co/

b2bpay logo

Exports from Brazil

By | Money transfer

Exports from Brazil: Whenever anyone mentions Brazil, our mind immediately thinks about beautiful beaches, scintillating girls and football, lots of football. But there is actually more to Brazil then just beaches, girls and football. Believe it or not, Brazil is the mainstay of South America, with the 5th highest population in the world; it is also the hub of trade and commerce in the continent.  

Exports play an important part in the incomes of a nation. The relationship between imports and exports determine how stable a country’s economy is. Brazil, being the 9th highest economy in the world, and it did not achieve that feat without doing much. In the international trade market, Brazil exports most of its products to countries like China, United States of America, Argentina and the Netherlands. In terms of imports, Brazil’s main partners in the ally are again countries like, China, United States of America, Argentina, Germany and South Korea. Below is a list of 10 items that Brazil exports more than anything else.

Refined Petroleum

Refined Petroleum is the 10th largest trade that Brazil makes. On its own, refined petroleum that Brazil provides, is sufficient enough for the whole of South America.

Aircrafts, Helicopters and Spacecraft

Contrary to popular belief, USA is not the largest supplier of aircrafts, helicopters and spacecraft. It is true that USA manufactures and sells the most amounts of arms and ammunition throughout the entire universe, but aircrafts, helicopters and spacecraft are a completely different thing. Brazil provides all, the spare parts, resources and the built crafts.

Corn

Being one of the biggest countries in the world that is famous for its agricultural setup, it is no surprise that so many of Brazil’s agricultural products make it in the international market. Corn is one of the substance that Brazil exports more than any other agricultural product.

Coffee

The world’s fuel. It is a universal fact that over 80% of adults in the world, run on 2 things, either coffee or tea. Well, Brazil makes plenty of coffee, even so much that they export the leftovers to other countries and make millions off it.

Soybean Meal

Soybean meal is not just a major source of nourishment for humans, but it is also a significant source of food for animals. Brazil provides a lot of Soybean meal for everyone’s needs.

Poultry Meat

Poultry includes animals from farms, like Chicken, Ducks, Quail, Turkeys and all the by-product that comes from them, like eggs. Brazil is a major exporter of Poultry Meat.

Sugar

Sugar is the main source of carbohydrates. It can be found in almost every edible substance that we consume. In the list of Brazil’s highest exports, Sugar ranks at 4th.

Soybean

The Soybean is famous all around the world, in Europe it is known as Soya bean. It is plant that is grown in the forest, and the only edible part is, is its bean.

Crude Petroleum

Crude petroleum is the total opposite of refined petroleum. Refined petroleum is the fuel used in automobiles like car, bikes and trucks. On the other hand, Crude Petroleum is the more raw form of petroleum. Among all of Brazil’s exports, Crude petroleum ranks as number 2nd.

Iron Ore

Voila, Brazil’s most significant export is Iron ore. Iron ores are not exactly raw form of iron, but it is the mixture of rocks and mountainous parts out of which pure iron is extracted and then put to use.

There you have it folks, that was the top ten of Brazil’s biggest and the most significant exports. Other honorable mentions are;

  • Sulfate Chemicals
  • Wood pulp
  • Cars
  • Vehicle Parts
  • Semi-finished iron
  • Frozen bovine meat
  • Tobacco
  • Gold
  • Fruit Juice
  • Ferroalloys
  • Alcohol > 80% ABV

B2B export from Malaysia to Europe

By | Money transfer

Malaysia as one of the top 20 Exporting nations worldwide (Source: WTO) has export earnings of around Malaysian Ringgit (MYR) 72.84 Billion in its trade with Europe for 2014. This was an increase of 11.6% from 2013. The main items exported by Malaysia to EU were Electronic and Electrical Equipment especially IC (Integrated Circuit) Boards. The top five major destinations for Malaysian exports to the EU were the Netherlands, Germany, the United Kingdom, France and Belgium. Other items which saw an increase in value were palm oil, chemicals, optical and scientific equipment, machinery, appliances and parts, transport equipment, textiles, clothing, and footwear (Source: MITI).

Legal Requirements to export goods into EU

The following procedures/regulations need to be complied with before a Malaysian exporter can start sending their goods into the European Union.

  • The first time a Malaysian company makes any customs declaration to export a product into the EU, the company will be given an EORI (Economic Operator Registration and Identification). This is a unique identifier for use by Customs Authorities in the EU for anyone wishing to export or import goods into the EU. The EORI must be used in all communications with any EU Customs Authority for the purpose of exporting or importing from and to the EU.
  • The next requirement is the Entry Summary Declaration (ENS). This will contain information about the consignments entering the EU. This must be done in advance (of the goods arriving) at the first port in the EU where the vessel transporting the goods crosses into EU territory.

There are different deadlines for submitting the ENS to Customs. The deadlines is based upon the type of vessel transporting the goods into the EU (source).

There are strict rules on the export of goods into the EU and Malaysian exporters need to be aware of these rules prior to shipment of their goods into the EU (see this document).

There are more tips on EU import requirements at the European Commission website.

When does an exporter of goods into the EU expect payment?

A Malaysian exporter can specify what the payment terms are upon signing of the contract for the supply of goods with the recipient EU based company. The EU has enacted legislation that specifies what the terms of payment are for B2B transactions. This was done to protect EU based business especially SME’s from having cash flow issues which affect their business. The directive also provides for protection for non EU based exporters provided the contract specifies that the payment terms are as per the Late Payment Directive. This is usually 60 days unless mutually agreed by both parties.

More information can be found at the European Commission website.

exchange risk b2b exporters

Exchange Risk for Exporters and Solutions

By | Banking, Money transfer

Importers and exporters have to keep in mind many issues while making transactions and making money exchange. Even if they want to deal with the transfer of goods internationally they make up their mind with the best strategy aligned with their budget and profit margins. The fluctuations in the exchange rate are a major concern for the person dealing internationally. For example the price you are willing to pay today may rise or fall in the coming next day and it may cause you loss as well. We can see that current economic condition is fluctuating on day to day basis. So it is very difficult to keep track of these changes.

The instability in political conditions may cause you loss in your earnings so it is considered one of the major risks. It can even cause problems in the completion of your contracts. On the other hand government policies may change. We have to carefully look over the factors such as civil disorder, natural disasters, war conditions and local laws as well. Political risk Insurance will help you to analyze and minimize these risks to the maximum level of certainty.

Legal Risk is the risk which you may face when there is a difference and contradiction between the rules and regulations of the two involved countries or companies. For example difference between legal law system and civil law system. The issue entailing the topic that which country law will be applied in case of any dispute. The parties have to reach at a comprisable answer to precede the dealings. Liability laws of products and warranties, these are of great concern. Taxation and misinterpretation of laws can drop down your projected revenues if strategy is not carefully developed. All mentioned concerns in this paragraph comes in legal risks. We can see that how important is to minimize it.

The risk of Quarantine Compliance occurs when you are not aware of Quarantine requirements. You must know that what is allowed and what is not allowed under the quarantine laws of the said destination. If not carefully handled it may lead to the restrictions, fines or damages of goods. So to maintain ongoing good relationship with the party you are dealing with you must take care.

Nonpayment risk often results due to unreliable sources. You are not paid even when you have fulfilled all the requirements of the other party you are in contract with. You must consider the risk and credit terms before getting into the contract. Keep track of the credit reports. Get protected with credit insurance to minimize such risks.

You must manage your risks by thinking critically about all the undesirable outcomes that you can face while dealings. It is the key to success and maintaining profit margins. Management of your risks will prepare you for every kind of situation. You can make your dealings fair and smooth. This will further make your relationship more friendly and reliable. And you will generate loyal customers as a result.

B2B Pay is the solution to some of your international trading problems or money transfers. With B2B Pay you will get you own IBAN number in Europe with which you can collect payments without any charges in thirty four European countries. You can save up to eighty percent on currency exchange. In this way you can increase your profit margins by ten to twenty percent. You can have payment account details on invoices or websites. Exporters face many challenges while trading or currency conversion. The two most common issues faced by the exporters include the time banks takes to deliver b2b payments and the charges of the bank while converting currencies. B2B Pay is lowering these costs to great extent.

By signing up with free B2B Pay services you get compliance checks, flat fee for currency conversion and paying your bank account in home country. IBAN account is provided for your ease, no complicated steps or procedure to follow. No delays in the payment, payments are reached timely meeting your expectations. B2B pay promotes fair dealings no hidden charges like others. Transparency of payments is what B2B pay delivers. Be aware of all the problems you may face in the future and choose a reliable and efficient means of transferring the payments.

Sending money to Malaysia

Sending Money to Malaysia

By | Banking, Money transfer

Remitting or sending money to Malaysia is a fairly easy process these days. The Malaysia currency is known as Ringgit (pronounced as Ring gait) Malaysian with its usually known symbol being RM or MYR.

Sending money to Malaysia

There are two methods to sending money to Malaysia. The first is the traditional method using conventional banks and financial institutions operating in Malaysia. These financial institutions are regulated by the Malaysian Central Bank or Bank Negara Malaysia. The remittance of funds is covered by the Exchange Control Act 1953 and the Payment Systems Act 2003. The other method which only recently has become more popular due to the convenience of the Internet is online transfers such as Western Union, PayPal which are the more popular remittance service providers.

Regulation

There are various rules regulating the transfer of funds into Malaysia from overseas. The rules applies differently to residents and non-residents. The rules are also different for companies and individuals. Different rules also apply to remittance of foreign currency to Malaysia and the remittance of foreign currency to be converted into ringgit.

B2B transfers

Exporting companies which would receive payment for product or services rendered and to be paid by the foreign company in any foreign currency must show proof of that the product or services was purchased and invoiced to the foreign company. The funds sent must correspond to the value of the product and services invoiced by the Malaysian resident company. The company remitting the money would also have to provide correct details about the invoicing company and its bank account – ie Name of the account, Bank Name and address and SWIFT or BIC (Bank Identification Code) which is the bank’s unique identification code.

See also our article B2B money transfer

Individuals receiving money

Individuals (residents or non-residents) can receive funds from overseas via normal money transfers into their bank account. These funds will normally be converted from the foreign currency into Ringgit before being deposited into the local bank account. Individual residents or non-residents can also receive foreign currency in the specific foreign currency i.e. not converted into Ringgit if they have a Foreign Currency Account Bank Account. However, the currency being remitted must be the same as the type of currency the Foreign Currency Account was opened with – a remittance of USD$ can be deposited into a USD$ Foreign Currency Account but a remittance of Euro € may not be remitted into the USD$ Foreign Currency Account. The other issue with transfers via bank accounts is the time taken for the funds to be cleared and available to the recipient is based on the individual bank’s operating hours and clearance guidelines which can sometimes be up to five days.

For a faster more convenient method, online transfers are used to remit funds to residents and nonresidents. These transactions can be completed in minutes and to any location in Malaysia which is affiliated to the particular remittance company.

The overseas sender may be requested to provide information about the recipient who is based in Malaysia such as name, passport number or date of birth and other personal information. The recipient would only need to show some form of identification or some information corresponding to whatever condition set by the sender to receive the funds.

Further reading