How OFX Merchant Seller Service Works
It has never been easier for enterprises of all sizes to maximize their true potential by conducting business across borders. Thanks to the latest developments in the fintech universe, small-and-medium-size enterprises now stand a better chance of competing in the global stage thanks to online money transfer agencies that save them money.
OFX Merchant Services
OFX is one of the industry giants in the online currency transfer space. The company’s shares are listed on the Australian Stock Exchange which gives it automatic credibility.
OFX helps small-and-medium-sized enterprises save money on cross border transactions. What really separates OFX from traditional old-school banks is its ability to help customers save around £2,000 for every £77,000 transferred.
Enterprise owners can create a new account in three simple steps: 1) provide basic details about account details, 2) provide account numbers which will be used to withdraw and accept British pounds, and 3) take control of the account by deciding when to convert funds and how much.
Setting up an account is free, and customers can pick and choose which currency or currencies they plan on interacting with. Monthly maintenance and 24/7 support is also free.
The company has a global network of 115 local bank accounts that are tasked with handling transactions whenever possible. This implies a transaction can be finalized from start to finish on the same day. For other transactions, the standard delivery time is usually up to two business days.
OFX is regulated by a handful of global entities, including the United Kingdom’s Financial Conduct Authority, Australia’s ASIC, USA’s FinCEN, and Canada’s Fintrac.
Three Main Benefits To Help Imports
Enterprises of all sizes benefit from OFX’s services in many ways, but the money transfer service stands out in its ability to help with three important aspects of importing goods.
First, OFX can be used to forward the money to foreign suppliers in the currency of their choosing. Suppose a supplier in China wants to be paid in British pounds for an import. OFX can certainly handle the same currency cross border payments. Using OFX to pay for imports eliminates surprises as the customer always knows in advance the exchange rate they locked in and the exact dollar amount.
Second, OFX allows customers to pre-select their desired conversion rate, known as a limit order. Once an order is placed into the system, OFX will automatically fulfill the order when the market price reaches the desired limit price. The user doesn’t have to be online at that time as the platform will work 24/7 on their behalf to save money. This is especially useful if an enterprise can wait a few days, or even a few weeks for an import so they can best maximize their savings.
The third area is where OFX really shines is by offering a service called forward contracts, or swaps. Until recently, this type of service was offered almost exclusively through London’s Square Mile or Wall Street banks. A forward contract allows an enterprise owner the ability to “lock in” a set exchange rate for up to 12 months to help protect their cash from unfavorable exchange rate changes.
Suppose an enterprise owner knows they will need to import 100,000 euros worth of goods in 10 months from a factory in Italy. The owner can enter into a forward contract and lock in the current exchange rate between British pounds and euros. No matter what happens over the next 10 months, the exchange rate will stay the same.
Tips And Tricks: How To Get Everything Right
Managing a local business with exposure to global markets can be a daunting task. As was seen in the immediate aftermath of the 2016 Brexit vote, the British pound tanked to a multi-decade low. Enterprises who didn’t take any steps to protect their home currency through a platform like OFX felt varying degrees of unnecessary and undue pain.
OFX understands that the vast majority of their customers are far from experts in predicting the direction of global currencies. And why should they be? Running a business is difficult enough as is. To best make sure all clients are set up to conduct their global business correctly, OFX can offer a personalized foreign exchange risk management plan tailored to individual needs.
OFX’s products are designed to help enterprise owners better concentrate on building a global empire, one transaction of at least £100 a time.
Other tips and tricks to get the most out of OFX’s service include taking advantage of integrated cloud accounting software platforms like Xero. OFX also offers ancillary services, including solutions to simplify payroll.
Bottom Line: How Can Anyone Survive With OFX?
Just 20 years the concept of online money exchange services like OFX didn’t exist. By default, this almost certainly resulted in small-and-medium-sized enterprises not being able to compete against larger rivals. Thankfully, much has changed over the decades and enterprises of all sizes are now competing on a more even playing field.