USD Remittance without Forex Conversion

[tolong1]

I've been assigned a new task, and it involves making monthly salary payments to some employees who are located overseas. These employees earn salaries ranging from USD 800 to USD 1200 per month. So I have to transfer in USD from our company USD account with DBS or UOB without any forex conversion.

Unfortunately, if I use DBS/UOB to make the monthly salary transfers to their overseas bank accounts, the transaction costs imposed by the banks are quite high.

In the past, I used to transfer the salaries through AMEX, but now they are shutting down. I'm seeking alternatives or options to efficiently handle these overseas salary transfers. Any suggestions or guidance would be greatly appreciated. Thank you.

 

[reddevil0728]

DBS remit cannot?

 

[rizhal]

Use Wise transfer

 

[tolong1]

Use Wise transfer

for WISE, I thought they maintain USD account in the USA. So we need to make a TT/SWIFT Transfer to USA then do another process. This information is unclear.

if WISE have a DBS or UOB USD account in Singapore, we can simply make a transfer. I did not notice any contact information in Singapore for WISE. Any experience of using WISE?

 

[reddevil0728]

https://www.dbs.com.sg/personal/deposits/pay-with-ease/international-transfers
dbs remit is like $0 fee for usd

 

[BBCWatcher]

Does DBS allow a corporate account to use their DBS Remit service? If so that should be free.

However, have you looked into a global payroll processor that handles essentially everything? ADP Global for example?

 

[rizhal]

for WISE, I thought they maintain USD account in the USA. So we need to make a TT/SWIFT Transfer to USA then do another process. This information is unclear.

if WISE have a DBS or UOB USD account in Singapore, we can simply make a transfer. I did not notice any contact information in Singapore for WISE. Any experience of using WISE?

I used Wise as a debit card for overseas spending.

in my Wise App, I see many currency transfer features, but I did not explored much. But I know Wise for past history strength in money transfer. (There was one time I used Wise to transfer money to an Australian merchant, they happen to have a Wise account. Low cost fee compare to bank remittance service)

I used paynow to transfer my bank money to my Wise account.

 

[fr33d0m]

Why keep USD in DBS/UOB? These are all offshore USD.

USD should use US bank and utilise ACH.

 

[yoongf]

Wise... Payment Service Act lisense in SG ... only allow max 30k sgd transfer a year.

https://wise.com/help/articles/2978043/holding-and-spending-limits-if-you-live-in-singapore

 

[tolong1]

Wise... Payment Service Act lisense in SG ... only allow max 30k sgd transfer a year.

https://wise.com/help/articles/2978043/holding-and-spending-limits-if-you-live-in-singapore

I think 30k SGD may be applicable to Individuals. For Business, I don't think such a limit. I am not sure I need to check

 

[tolong1]

Why keep USD in DBS/UOB? These are all offshore USD.

USD should use US bank and utilise ACH.

My business operates in Singapore. Some customers I bill in USD as they are located overseas. I am not sure we can open an USD account with US Banks in the USA. Can we open an USD account with USA Banks in the USA? Please share your inputs. Thanks

 

[fr33d0m]

My business operates in Singapore. Some customers I bill in USD as they are located overseas. I am not sure we can open an USD account with US Banks in the USA. Can we open an USD account with USA Banks in the USA? Please share your inputs. Thanks

check Wise.

Wise uses US bank for USD and can use ACH. There is always the other question. Where are recipients of your USD remittance? If they can't use ACH, also useless.

 

[tolong1]

check Wise.

Wise uses US bank for USD and can use ACH. There is always the other question. Where are the recipients of your USD remittance? If they can't use ACH, also useless.

My recipients are located in the Asia-Pacific region. 2 are located in Malaysia, 3 in Indonesia, and 1 in the Philippines, 1 in Thailand, 3 in India. All of them are paid in USD monthly salary.

Basically, we are providing some services to USA-based clients. We recruited certain individuals as Independent Contractors for the USA companies. They are paid a monthly salary on the 30th of every month. The monthly salary payment amount ranges from USD 800 to USD 1200. My bank is with DBS for business accounts.
What is the best way to make remittances in USD for these employees?

Thanks

 

[fr33d0m]

My recipients are located in the Asia-Pacific region. 2 are located in Malaysia, 3 in Indonesia, and 1 in the Philippines, 1 in Thailand, 3 in India. All of them are paid in USD monthly salary.

Basically, we are providing some services to USA-based clients. We recruited certain individuals as Independent Contractors for the USA companies. They are paid a monthly salary on the 30th of every month. The monthly salary payment amount ranges from USD 800 to USD 1200. My bank is with DBS for business accounts.
What is the best way to make remittances in USD for these employees?

Thanks

US bank account to receive payment from clients are certainly simpler and probably cheaper, too. How receptive are your employees to open a Wise account? If they are okay, you can use Wise and Wise is originally designed for this.

 

[Shirak]

Check out Wallex.

www.wallex.asia

 

[BBCWatcher]

My recipients are located in the Asia-Pacific region. 2 are located in Malaysia, 3 in Indonesia, and 1 in the Philippines, 1 in Thailand, 3 in India. All of them are paid in USD monthly salary.

Basically, we are providing some services to USA-based clients. We recruited certain individuals as Independent Contractors for the USA companies. They are paid a monthly salary on the 30th of every month. The monthly salary payment amount ranges from USD 800 to USD 1200. My bank is with DBS for business accounts.
What is the best way to make remittances in USD for these employees?

I don't think there's a fantastic way to do it. The U.S. dollar isn't the local currency in any of those countries either, so the recipients will presumably incur costs on their end(s) too.

To clarify, do these recipients have U.S. dollar bank accounts in Malaysia, Indonesia, the Philippines, Thailand, and India where they want to receive U.S. dollar funds? Or do they want to be paid in (respectively) MYR, IDR, PHP, THB, and INR — and you're trying to maximize the local currency amounts they receive month to month (combination of best conversion rate and lowest transfer costs) based on a USD-defined salary?

 

[MrTofu]

Convert USD into USDC and send via blockchain.

 

[CrashWire]

I don't think there's a fantastic way to do it. The U.S. dollar isn't the local currency in any of those countries either, so the recipients will presumably incur costs on their end(s) too.

To clarify, do these recipients have U.S. dollar bank accounts in Malaysia, Indonesia, the Philippines, Thailand, and India where they want to receive U.S. dollar funds? Or do they want to be paid in (respectively) MYR, IDR, PHP, THB, and INR — and you're trying to maximize the local currency amounts they receive month to month (combination of best conversion rate and lowest transfer costs) based on a USD-defined salary?

I'll let the TS answer for themselves, but trying to pay contractors at scale in their original currency when the currency agreed upon in a contract is (likely) in USD might violate it.

The best a good employer can do is advise them to open a native USD account (though the contractor would get charged the bank's FX spread when they convert it back to their own currency to use), or a Wise account!

 

[CaptainWu]

Don't think you can skip the charges, just find the way with lowest commission. I ever transferred USD from DBS to SCB (all local bank) without exchange conversion. Being charged S$30 and US$35 even DBS Remit says no cost. I remember other than charges from SCB as a receiving party, there are also agent bank charges which is hidden (as DBS remit just say there may be without quote).

 

[BBCWatcher]

I'll let the TS answer for themselves, but trying to pay contractors at scale in their original currency when the currency agreed upon in a contract is (likely) in USD might violate it.

Maybe, but a contract cannot achieve the impossible. If the recipient doesn’t even have a U.S. dollar bank account — and why should they? — what are you supposed to do? Send a courier with U.S. dollar cash for hand delivery? Hence my question about what the actual objective is.