One of the biggest challenges companies face when looking to import equipment for their business is making the cross-border payment. One of our corporate clients from Calgary, Alberta faced this exact issue. They were regularly importing safety equipment and consequently needed to make regular payments to their American vendor.
The Challenge
Wire payments are standard method of sending payments since they are immediate, but also have many drawbacks. Our client was using their bank to send their wire payments and received complaints from their beneficiary that the payments were coming up short. In order to make up the missing costs due to bank wire fees, they had to add an additional $30USD to their invoice on top of the wire fees. In total, each wire payment was costing them a total of $60USD per invoice.
The Solution
Danielle Eloschuk, a Senior Account Manager at Olympia Trust, took over the account and introduced the company to Pre-Authorized Debit Automated Clearing House (PAD-ACH) Payments. PAD-ACH payments are an efficient and cost-effective method to electronically transfer funds between your USA-based USD accounts.
As most of their payees were in the US, this was an ideal settlement method for them. The PAD-ACH payments typically credit the beneficiaries account the following business day so there were no delay in sending or receiving the funds.
Key Benefits of using PAD-ACH
- PAD-ACHs are free of charge
- Typically credit the beneficiary account the next business day
- Eliminates the need to visiting the bank
- Creates a secure payment solution and reduces risks of cheque fraud and forgery
- Efficiently manages cash flow
The Results
Danielle took the time to understand the company’s payment processes and offered a cost-efficient alternative to the costly wire payments they were previously using. The company was able to save time and money on both outgoing and incoming wire fees in addition to building trusting relationships with their suppliers.
