The expansion of the online market has brought revolutionary changes in the international industry. Customers do not have to stay in the confinement of their geographical limits to shop for products and services overseas. Businesses have also gotten the opportunity to connect directly with foreign buyers. Today, any e-business owner can choose a money transfer API provider to carry out international transactions swiftly. Yes, earlier, most of the international payments concerned remittances (money sent by NRIs to their families).
With the security and feasibility of online payments, some portals allow international purchases. But every person involved in such transactions wonders how it works? Well, the process is fast but not as simple as it seems to use when we make the payments. There is a long chain of bank-to-bank connections and a couple of mediating networks that help the cause. Let us understand the different ways in which this international money transfer system works.
Three Pillars of International Transactions
International transactions take place through different sources depending upon the purpose of the payers. People always lookout for the most secure and safe portals online to carry out the transactions whether it is a simple monetary transaction or an online purchase. Whatever be the cause, there is always a money transfer API provider to make things work out.
Precisely, there are three ways in which international money transfers work. The ones abreast with all these three options and their working process can make an informed decision.
Money Transferred Through Bank Accounts
Banks perform international transactions for a long time. NRIs have always relied on the interconnected chain of commercial banks supported by international sources to transfer money overseas.
- There are two international financial messaging and connecting systems named SWIFT (Society of Worldwide Interbank Financial Telecommunication) and SEPA (Single Euro Payments Area).
- The former covers the major parts of the world and the latter covers the entire Europe. These messaging networks help thousands of banks to connect in the event of a transfer.
- These networks just pass the information of a debit command from one bank and pass it to the other concerned party.
- With these two major systems working in the international markets, banks can cooperate easily and carry out the transactions. However, these processes are usually time-taking and take a couple of days to complete.
Transactions Made Using Online Payment Gateways
The online payment gateways or what we know as a money transfer API provider have made online shopping and other international transactions a secure and robust task. Businesses concerning overseas markets utilise the facilities of these service providers to create a codependent chain of online payments.
- Payment gateway operators work on behalf of the merchants to contact the banks of both the concerned parties for completing a transaction.
- These portals are secure, fast and use a well-integrated mechanism to perform the operations.
- With the help of a reliable money transfer API provider, any business can reach out to masses in foreign lands to sell or buy goods.
Cash Transfer Portals
Just like the online payment gateways, there are online platforms that enable direct cash transfers. Instead of buying or selling something to reach a secure portal, one can directly access these sites to transfer cash. These portals perform the currency conversion for their users and credit the money in the mentioned accounts. The process is simple and saves time.
The purpose of a money transfer API provider is to connect the gaps between merchants and customers settled in two different parts of the world. Every business owner looking for options to expand his brand overseas should choose a reliable and secure payment gateway service provider to carry out the tasks. Most importantly, ensure rapport and goodwill in the international market.