Used machinery deals closed through global online marketplaces typically involve international bank payments. While proceeding with a bank transfer locally is a simple operation, transferring money across the borders can cause uncertainties. Considering that the end price of used machinery usually counts in thousands of euros, both buyers and sellers would prefer to be sure the money is transferred safely. How is it possible to securely pay for a machinery deal? Let’s shed some light on this sensitive subject.
Bank money transfer
The most common and comfortable way to transfer large amounts of money abroad is a bank transfer. Transferring money from one account to another is a fast and safe way to proceed with a payment. Nowadays, most bank transfers can be processed online through an internet banking portal. Online bank payments are truly convenient, yet when it comes to international money transfers one should be mindful of a few cornerstones.
International payment for machinery
The following details are required to successfully complete an international bank transfer.
- Full name of person or business you’re transferring money to
- Bank account number or International bank account number (IBAN) – see explanation below
- SWIFT Bank Identifier Code (SWIFTBIC) – see explanation below
IBAN – International Bank Account Number is your bank account number written in internationally recognized format. It helps to identify, where the payment comes from.
SWIFT (BIC) – Address assigned to a bank in order to send automated payments accurately from one bank to another. It is a unique code which identifies the bank name and country of origin.
Bank account details for international payment
For example, bank account details for international payment can look like that:
Bank name: Komerční banka, a.s.
Account number: 000115-3951700217
Bank transfer types
Apart from online bank transfer which can be processed through internet banking access on your computer and in-branch bank transfers which you can proceed with at the actual branch of your bank, there is a specific type of money transfer called SEPA payment.
SEPA stands for Single Euro Payments area and represents a new format for cross-border European bank transfers. SEPA initiative was created to simplify bank transfers within EU area. At the present moment, there are 34 countries in the SEPA zone:
- 19 Eurozone states (Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain)
- 9 states that are in EU but not in the Eurozone (Bulgaria, Croatia, the Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, United Kingdom)
- Iceland, Liechtenstein, Norway, Monaco, San Marino and Switzerland
Advantages of SEPA payments
This type of money transfer comes very handy when the situation acquires an immediate proceeding of payment. SEPA transfer is especially a very convenient method to proceed an international payment for machinery. Imagine you went to inspect a machine you would like to buy. The machine suits your needs and you happen to have a truck nearby, so the transportation can be executed on the spot. You’d like to close the deal and load the machine immediately to save yourself an extra trip. In this case, an instant payment like SEPA can save the whole situation. You make a SEPA payment to the seller, you both go to have lunch and discuss the conditions of the deal. And in a couple of hours the seller receives the money. For more details on SEPA payments, please consult with your local bank.
While local money transfers are usually processed for free, international payment for machinery may imply certain bank fees. First of all, it’s important to find out before hand how much you will be charged for the international money transfer. Secondly, when making the payment double check if the fees are paid by the sender of money or by the receiving side. It can happen, the receiving side will get the total amount minus the bank fee which is not what you previously agreed upon. To avoid any misunderstanding and delay, please follow the payment instructions below:
- OUR instruction means all transfer charges are paid by the sender (you). In this case, the other side will receive the full payment.
- SHA (shared) means the sender only pays the bank’s outgoing transfer charge. The other side receives the payment minus the correspondent (intermediary) bank charges.
- BEN (beneficiary) means the sender doesn’t pay any charge. Receiver will get your payment minus all transfer charges.
Exapro bank details
In Exapro we have a single bank account set up in different currencies: USD, EUR, GBP, CAD, CZK. We accept payments in all these currencies from our partners. If you’re transferring us money, please make sure which currency is stated on your invoice and process accordingly.