Wiring Money from Canada—Avoiding Unnecessary Costs

So, you need to pay a bill in the US or another country quickly, and they are requesting a wire. You could do that, it will work out fine. They get their money on time, and everyone is happy, right?

Let’s be honest. You might not be happy with the cost. We see outgoing international wire fees cost our clients anywhere from $20 to $45 each depending on the bank they are dealing with and the type of account that they have. Do that once a month or more and it adds up fast. Can you imagine the amount in a client that sends multiple wires a week?

Well, we used to do wires. However, there is a more cost-effective way.

Most of our clients who need to make payments to destinations outside of Canada have tried a solution that has been working really well for us. We started testing Veem in December of 2018. Perhaps the name Veem is ringing a bell? Maybe you saw something about them in Forbes, The New York Times, or CNBC?

We actually took the most complicated client we could find and tried it there first. We don’t have time to waste if it’s isn’t going to work for us, I wanted to know now, not 6 months down the road after we’ve started having more clients use it. Well, despite the difficulties we threw at them, the Veem team has done a fabulous job. We are now happy to launch Veem as a solution across more of our clients. This app is "Aeble to make a difference" in your business.

It doesn’t cost our client anything to send payments to the United States.

If you are naturally skeptical like me, this might have you giving your screen a little side-eye. I wasn’t sure about this when we first considered using Veem. Immediately I was wondering how a company could offer this service without charging anything. Any business needs to make money, so how would they be making theirs? Well, it’s simple really.

Veem makes their money on the exchange rate. But here’s the kicker, the exchange rate we’ve been offered has always been more competitive than what we were offered at the bank when comparing the two rates. This on top of not having to pay wire fees, is a definite bonus.

We aren’t the type to beat around the bush at Aeble Business Services. There are situations where Veem isn’t going to work for you. Here are a few considerations you might want to know before setting up an account:

  • If the person you are trying to pay is outside of the list of countries Veems serves. You can see that list here.

  • If what you are trying to do isn’t a business payment. Sorry, Veem is a business to business solution only.

  • If the organization you are sending the money to won’t/can’t set up a login. Veem has a setup process where the person receiving the money has to do to be able to receive the payment.

  • If it is a remittance payment. This is rather unfortunate, but you cannot pay money owing to government bodies through this method. We’re crossing our fingers this changes sometime in the future.

  • You cannot send money to an intermediary. According to Veem: “The named entities on each side of the transaction must be the original source and final destination of the funds.”

  • You cannot send money for what they term as ‘money businesses’—think things like lending, escrow, securities, and collections.

  • You cannot pay employees via this method. However, if they are a 1099 contractor, they should qualify as a business payment.

  • Canada to Canada payments at this time. But there are other options out there for that.

Let’s get back to what you can use Veem for. Here are some things you can do that can make a positive impact on your business:

  • Paying a bill that is for goods or services purchased. As long as you are sticking to the list of countries they can transfer money to/from.

  • Accept payment on invoices being paid from another country. For example, if you are coaching someone in the US, they can easily pay your invoice for that service via Veem.

  • Inter-company payments are allowed if it is a separate entity.

  • Sync all your records directly in your bookkeeping file if you are working with Xero real-time. Which allows you to easily track your payments. This can also be done by logging into Veem directly.

  • Request payment from Customers using a custom pay link.

  • Customization to users' abilities, or the ability to have multiple approvers if needed.

  • You can pay 1099 contractors, but you cannot pay employees. (Yes, it’s a duplication of the point above...this is to help anyone skimming this post to not miss this.)

For more information on what you can and can’t do, check out Veem's FAQ https://help.veem.com/hc/en-us

We hope that helps! As always we are here to help make a positive difference in your business. Comment below or contact us if you have any questions.

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