You are selling something through an international Escrow service and the option to send to your country is through an International Bank Wire or Cheque / Check.
So what’s the problem? Well, by choosing the International Bank Wire or Cheque option are the very high visible and hidden bank fees. The obvious fees are what the banks charge to exchange the currency. The hidden fee is the poor exchange rate on offer.
You are selling or flipping a website through FE International. You choose to use Escrow.com as the trusted international escrow service. You do not live in the USA and the Escrow.com payment options are:
- USD Check / Cheque
- Local Bank Wire
- International Bank Wire / Transfer
If you choose either cheque or international bank wire you will loose some of your profit through bank fees.
Don’t worry. There is a simple solution to this problem. This has been tested and it works!
(For the remainder of this article I will use Escrow.com as the example for USA based Escrow service.)
Can I use an international foreign exchange service and Escrow.com to transfer funds to a UK or another international bank account? Yes. Using a specialized international money transfer service can save you money on unnecessary bank fees.
Does Escrow.com allow the use of the use of foreign exchange providers to or from USD, EUR or AUD? Not exactly, most do not partner with a specialist but there is nothing stopping you from using it yourself. Ensure that both Escrow.com and your global money transfer service, such as OFX.com, is aware of what you are doing^. This will ensure a smoother transactions and experience. The simple steps required to make it happen are explained here.
Global Money Transfer Account Preparation
- Create an account with one of the global money transfer provider options above.
- Verify ID – necessary for money laundering compliance.
- Create a new ‘transfer’ or ‘deal’ with your chosen currency partner for the amount you are expecting from Escrow.com or other Escrow Service. This can be done online or over the phone.
- Make a note of the unique provider reference number that you are requested to add to the bank transfer reference field. (For example, this can be found under bank details in OFX.com’s online dashboard – image below.)
- Make a note of the providers local currency bank details. (For example, this can be found under bank details in OFX.com’s online dashboard – image below.)
Escrow Account Preparation
- Add the Money Transfer Providers local bank details to the local payment details. (For Escrow.com that is the Local Bank Wire option)
- Contact the escrow service and ask them to ensure the unique reference number is added as the bank transfer reference on the local bank wire transaction. This identifies your transfer as your funds.
Note: With Escrow.com there is a notes option in your bank details. This is where we added our OFX reference number. Always call your service to make sure.
So, why do we recommend that you choose a money transfer service partner that has account managers? Just in case your unique reference number was not added to the bank transfer, you can always call your transfer partner and they can find the transaction on their local bank account and ensure that it is assigned to you. Without that, you are left with email, twitter etc. Nightmare!
When sending money to an international escrow service OR withdrawing proceeds of sale from an international escrow service. Choose to partner with one of the best global money transfer companies. Don’t give your money to the banks in hidden fees.
^Andrew Hay, CEO of Transpact.com makes a really interesting point on LinkedIn. Check with your Escrow service. We have verified the escrow to money transfer service method described in this article with Escrow.com and OFX.com.