In today’s fast-paced world, finding the right payment method can leave your head spinning. At OFX, we make it simple. Let’s dive into the different types of international payment methods.
Our experienced OFXperts weigh in on the advantages and disadvantages of the various payment methods available and how to select the right payment channel for you.
Types of international payment methods
In a highly globalised world, transferring money across borders is important to many people and businesses. Finding the right transfer method can save you time and/or money.
Let’s dive into the different ways OFX helps you send and receive payments in Hong Kong.
Sending HKD from your bank account to OFX
Options for clients paying HKD to OFX from within Hong Kong:
- Autopay*
- Online local payment method that sends money directly from one bank account to another.
- Typically clears by the next day (T+1).
*Autopay service in HK will be decommissioned on or before 22 September 2024.
- Faster Payment System (FPS)
- Used for clients paying HKD to OFX from within Hong Kong instantly.
- CHATS
- Used for clients paying HKD to OFX from within Hong Kong on the same day.
- Payment method for high-value payments within Hong Kong.
- If paid via CHATS, fees will be deducted by the bank.
Good to note: Some banks have daily limits. We can accept partial payments generally over five consecutive business days.
Sending money from OFX to an HKD recipient
Options for clients paying HKD to OFX from another country:
- SWIFT
- Used for clients paying HKD to the OFX account in Hong Kong from their bank account held in another country.
- Used for HKD payments being sent outside Hong Kong.
- It is likely fees will be deducted by the bank before the funds are credited to the beneficiary.
- Recipient usually receives the transfer the next day, however, transfer speeds can vary depending on time zones.
Good to note: Some banks have daily transfer limits. We can accept partial payments generally over five consecutive business days. Contact an OFXpert for more information.
Now that we’ve laid out some of the most common international payment methods for Hong Kong, let’s dive a bit deeper into the advantages and disadvantages of each method.
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Advantages and disadvantages of international payment methods
Each of these payment methods has clear advantages and disadvantages, and it all comes down to how and when you need to move your funds and the costs associated with the transfer. Let’s run through both sides of each international payment method discussed above.
SWIFT
| Pros | Cons |
| Only choice for payments from outside of Hong Kong | Telegraphic Transfer (TT) fees apply |
| SWIFT payments can be amended, recalled and traced. | Process time varies and is subject to banks |
Faster Payment System (FPS)*
| Pros | Cons |
| Instant payment speed | Maximum transfer limits apply |
| Recalls can be performed** | Cannot be amended or traced |
| Instant failure if the beneficiary details are incorrect, return speed is quick |
*FPS is only available to clients transferring from Hong Kong.
*^ Recalls may take at least 2 weeks to receive a response.
CHATS^
| Pros | Cons |
| Traces and recalls can be performed^^ | Higher fees for outward payments |
| Same-day transfers |
^CHATS is only available to clients transferring from Hong Kong.
^^ Traces and recalls may take a minimum of 2 weeks to receive a response.
We know your needs change and our OFXperts are here to help you identify the right payment method each time. “Understanding the advantages and disadvantages of each type of payment method can be overwhelming. Our team is well-versed in each payment method and will help you find the right method every time,” Customer Service Manager Kristy said.
Now that we’ve run through what each payment method has to offer, let’s discuss selecting the right payment option for you.
It is great to be informed, but don’t feel like you need to know every detail about every payment method. Leave that to us.” – Kristy, Customer Service Manager
Which payment type is right for me?
Choosing the right payment method for you or your business comes down to five main things:
- How much you want to transfer
- Where you want your money to go
- What currency you are transferring to and from
- How fast you need the transfer to move
- If there are any transfer fees
We asked another OFXpert Michael, Corporate Team Lead, to share what he believes are the most important considerations for choosing a transfer type.
- Amount
The first step in selecting the correct transfer method is knowing the amount you need to trade. This is important because some OFX payment methods have minimum or maximum limits depending on the currency pair you are transferring.
- Location
The second step is to know where you want your money to go. Some payment methods are only accepted in certain regions or countries around the world and can incur more fees depending on where you want your money sent.
- Currency
The third step is knowing what currencies you are transferring to and from. As with the location, some currencies can only be transferred via certain payment methods. Contact your OFXpert to learn more.
- Speed
The fourth step is identifying when you want your payment to arrive.
- Cost
The final step is knowing how much you may be charged for fees on your transfer. Some international payment methods have higher fees than others.
That should give you a place to start, but if you’d like more help identifying which method works best for your needs contact an OFXpert.
Another important note to remember is that you’ll need to have your beneficiary name, bank name, and account number ready to go for every transfer.
Finding the right payment method for your business can get complicated, at OFX we keep it simple.
In today’s global world, money is being transferred daily across the globe. Knowing the right payment for those transfers can help save you time and money, and prevent any headaches. Understanding the details of each of these payment methods can seem daunting, but our OFXperts will keep it simple. Interested in learning more about our seamless, secure payment methods? Contact your OFXpert today!
Quick, secure, seamless transfers
We help clients move money quickly, safely, and accurately. Whether your business is just getting started or well-established, OFXperts have the experience to help you save time and money on foreign exchange.
Our OFXperts can help you get your money where you need it quickly, safely, and seamlessly. Contact us.
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.
