It’s difficult to know if you’re using the right payout solution. Whether you’re new to sending payments or have been doing it for a long time, there are so many factors to consider that can be overwhelming.
A payout provider should make it super easy for you to send payouts, but in many cases, a sender needs to navigate the obstacles of hidden fees, middlemen, and more.
To help you make the right decision, we’ve put together a guide to the things you should avoid when making payouts.
Every penny counts when you’re making payouts, even if those payouts add up to thousands of dollars. Because of this, there’s no reason for your business to be burdened with extra or hidden fees so keep an eye out for any pesky additional costs.
Avoid double conversion fees, correspondent banking fees, and different pricing structures, as the majority of these can be completely eliminated by using a solution that provides local bank transfers.
No Real-Time Tracking
Knowledge is power, they say, and it’s the same when it comes to making payouts. Understanding what is going on in the payout process can make things a whole lot easier so, when a payout provider doesn’t offer any kind of real-time tracking, it should raise a few red flags.
Why? Because being able to see what’s happening in the moment means you can keep your business and recipients up-to-date on payouts.
There’s no reason for you or your recipients to have currency issues when making a local bank transfer. Any issues - including forex fluctuation and a limited acceptance of currencies - can be hugely detrimental to your business, not least because of the extra fees that are often added.
According to our DigitalWomen Survey, half of respondents from India and a quarter of respondents from the US said they constantly run into currency issues due to a lack of information from their payout specialist.
Outsourced Compliance Team
The payout industry is constantly evolving. This means that a payout provider that outsources a compliance team is less likely to understand the quirks and nuances of the industry than one that works closely in-house.
To have a pleasant payout experience, there should be regular screenings of new and challenging regulations as well as comprehensive sanctions that an outsourced compliance team may not fully understand.
However, an in-house team is able to quickly monitor any suspicious activity and make sure all transactions follow a strong and global anti-money laundering program.
Working with a number of payout intermediaries can cause problems in the payout process as there are many steps for the money to pass through.
Let’s take a quick look at what the complex journey of a bank wire looks like below.
As you can see, using a specialist that sends payouts with bank wires can slow down the process, charge excessive fees, and result in numerous payout errors just because of the middlemen involved.
Limited Number of Simultaneous Transactions
Regardless of how quickly your business grows, it’s important to get yourself a payout solution that doesn’t limit simultaneous transactions.
This is because having an unlimited number of available transactions taking place at the same time will help accommodate any growth your business sees in the future.
Transpay is a global payments service that provides businesses of all sizes with a scalable, secure, and fully compliant cross-border mass payout solution, making it easy to send funds directly to the local bank accounts of vendors, business partners, freelancers or others in over 95% of bank accounts worldwide.
Over the last 30 years, we’ve built a global payout partner network consisting of direct relationships with hundreds of banks and financial institutions, enabling us to securely, quickly and efficiently make local bank transfers to billions of consumer and business bank accounts.