Everything in life is about taking things from one place and putting them somewhere else. You could be throwing a football, drinking a beer, trying to get the damn intake manifold out of your car – who knows. But when it comes to the betting life, the most important thing you’ll be moving around is money.
Most of us don’t even have to think about it. We do much of our business these days using cashless payment systems like direct deposit (aka “giro” transfer) that allow us to send and receive money with a tappity-tap of our smartphones. However, most of those transactions are small and local enough that we don’t need to pay them too much attention. What if you’re sending larger sums of money to the far-flung corners of the earth?
That’s where you need to use your noodle. Here are five factors you should keep in mind whenever you’re thinking about making an international money transfer, which you may end up doing on the regular if you’re betting at offshore sportsbooks or conducting business overseas.
1. Transfer Type
There’s more than one way to send money abroad.
There are those giro transfers we mentioned above, which work kind of like debit cards; you pretty much have to be in Europe to use those internationally, since American electronic payment systems like Automated Clearing House don’t do third-party transfers. You could also try money orders or postal orders if you want to go cashless.
You might even consider doing a wire transfer (aka “bank” or “credit” transfer) if you’re sending funds across borders. This is where you order your bank to transfer a specific amount of money from your account to that of your intended recipient. You’ll probably give your bank an IBAN/BIC code and some other information about your target, then your bank will send an electronic message, probably using SWIFT, containing the required instructions for the receiving bank.
2. Purpose
To help you figure out which transfer type is right for you, consider what kind of business you’re doing in the first place. Commercial payments fall into two buckets: B2B (Business to Business) and B2C (Business to Customer). If you’re a business buying something from another business, your payments are structured differently than when you’re just some guy buying a doughnut using Apple Pay. You’re also more likely to be sending larger sums of money, in fewer batches.
Chances are you’re doing B2C business instead of B2B, but even if you’re one of the movers and shakers in the latter category, you still have some choices to make before you send any money. Everyone’s trying to get into the “commercial payments” segment; the 2023 McKinsey’s Global Payments Report listed two dozen or so payment products across 47 countries, making up 90% of global GDP. Which product should you use?
3. Timing
That depends in part on when your recipient needs the money.
If you’re doing serious, time-sensitive business, you’ll need a commercial payment provider with the right tools and clearance to send money internationally in minutes, rather than the standard 1-4 business days you get with most transfers.
4. Fees
As you may already know through experience, if you want the money to get there more quickly, you have to pay for it. The same goes for the larger transactions that come with B2B transfers. Don’t skimp on these fees if you’re moving large amounts of money – you get the service and security you pay for.
5. Exchange Rates
Some say this should be the first thing on your checklist for which transfer method and payment provider you choose. You should have your financial ducks in a row first, but yes, once you get to this point, you can save a fair amount of money by choosing the provider that gives you the best exchange rate on your transfer. Shop smart.
