The payments industry is full of noise about various payout methods, and it can be tricky to discern between fact and fiction. As we detail in our series, "Transpay's Ultimate Guide to Local Bank Transfers," we define a Local Bank Transfer as a payment structure that makes it possible to send funds from a company’s bank account directly into a recipient’s bank account, in the local currency of the recipient.

We believe that the Local Bank Transfer methodology offers unrivaled benefits that enable you to deliver funds in markets around the globe, tailored to each market's unique local payments structure. In addition, Local Bank Transfers offer a high degree of security and a low degree of cost and hassle

That's what a Local Bank Transfer is. Still, we find it easiest to grasp a concept when we understand not only what something IS, but what something is NOT. So, let's look at what Local Bank Transfers are NOT. 

Read on to become a payouts EXPERT.

 

Local Bank Transfers are not eWallets or Prepaid Cards

Although many say the payouts methods are almost identical, they are mistaken!

Prepaid cards are prefunded payment cards and eWallets are virtual accounts. They are both indirect methods to send payouts because funds are not going directly to your recipients. Also, both methods are associated with hidden or additional fees and can include:

  1. Withdrawal fees
  2. Account maintenance fees
  3. Activation fees
  4. Closure fees
  5. Dormant account fees

photo-1537436094398-a987939d502e

Fees are subject to change at any time, without notice or approval. So, question is - why would you want to pay additional costs that you can avoid?

 

Local Bank Transfers are not Bank Wires

Although delivered from bank to bank, bank wires tend to be costly because of the middlemen involved.  The more middlemen, the more fees you pay.

shutterstock_574713295

When a sender or business sends their bank wire payment to a recipient, it doesn’t exactly go directly there. There are multiple correspondent banks that each charge their own fees throughout the process. This can include:

  1. Correspondent bank fees
  2. SWIFT message fees
  3. FX spreads
  4. Account fees
  5. Settlement fees

The list can go on and on- it’s not a pretty sight. **Hint- AVOID MARKUPS CAUSED BY TOO MANY MIDDLEMEN.

 

Why Local Bank Transfers? The method takes a more direct path, bypassing middlemen to save both time AND money. To learn more, read our first installment of the Ultimate Guide series: Getting to Know Local Bank Transfers: What They Are and How They Can Work For You.

 

 

Download Our Guide

Related articles
Local Bank Transfers

Top 4 Payouts Trends to Look For in 2019

With the beginning of a New Year, we’re seeing lots of predictions for the payouts industry. While we don’t like to make predictions, we do find value in staying ahead offalse

Local Bank Transfers

What's on Your 2019 Payouts Checklist?

Given that it's the middle of December, chances are good that you're setting goals for your business' performance in 2019. Whether you are a marketplace for goods andfalse

Country Spotlight

The Rise of the Philippines

Our latest country spotlight takes us to the Philippines, a country with one of the largest populations in Southeast Asia. The economy is flourishing, due in part to the false

Local Bank Transfers

2018 Trends That Powered the Growth of Local Bank Transfers

As the year comes to an end, Transpay wanted to take the time out to show the top trends of 2018. It is with these trends, that Local Bank Transfers will continue to growfalse

Subscribe to the latest updates on Sending Payouts.

Pay by API

Automate Local Bank Transfers Worldwide

Learn More
Pay by Web

Send Local Bank Transfers Online

Learn More
Get Paid

Receive Local Bank Transfers from Your US-Based Clients

Learn More