Companies need to make sure their funds are in the right place at the right time, and all wire payments are made on time. Lizanni Cuellar, Operations Manager at Belize Bank International Ltd. (BBIL), explains how companies can use wire transfers to support their cash management strategy.
Wire transfers are a quicker and more efficient payment method than using a banker’s draft, also known as a cashier’s check. A banker’s draft must be mailed, so it could take days or weeks (depending on the type of mail used) for the payment to reach customers in another country. There is always a risk that the payment could be lost in the mail. In contrast, a wire transfer can take two or three days, depending on how many intermediary banks it has to go through, but in many cases it is for same-day delivery.
“Most corporate customers at BBIL prefer wire transfers,” says Cuellar. “It’s really the quickest, safest and most efficient form of payment for them.”
Customers may apply for a wire transfer on BBIL’s online platform. Within an hour or two, the application is filtered to the foreign exchange department where the transfer is initiated. The cutoff time for wires is 2:00 pm. All applications received after 2:00 pm are processed the following business day.
BBIL executes wire transfers over SWIFT’s secure payments network. The originator’s name and address as well as the beneficiary’s details go along with the payment. Customers may also include remittance information, such as invoice numbers or account references for straight-through processing.
Importantly, BBIL has security measures in place to protect its customers from fraud. Almost all wire transfers are initiated online using a security token. The approval and verification process depends on the value of the payment. BBIL verbally confirms wire transfers over $50,000 with the customer.
Customers may cancel wire transfers in writing. If the cancellation request is received after the wire has been sent, then BBIL can work with its correspondent bank to recall it.
An outgoing wire transfer costs $75, and the fee for receiving a wire transfer is $20. “Wire transfers may cost more than banker’s drafts, but the advantages far outweigh the disadvantages,” says Cuellar. “We encourage our corporate customers to come talk to us about how they can benefit from this form of payment.”