Global account: How to make a global transfer in Hong Kong

What is a global account?

A global account serves as a financial solution designed to streamline international transactions. It allows users to handle multiple currencies and make global transfers – all on a single platform. This account type is particularly suitable for businesses engaged in worldwide operations as it simplifies the process of receiving and sending out funds across borders. Global accounts that support like-for-like settlement enable businesses to collect payments from international customers in their local currencies, so that they can pay in the same currency to suppliers in the corresponding region, thereby minimising the expenses incurred from currency exchange during global transfers.

How does an Airwallex Business Account differ from a bank account?

Airwallex Business Account offers businesses with local currency accounts that come with local bank branch codes and dedicated account numbers. However, they do not directly store funds like traditional banking methods. 

Instead, they consolidate multi-currency funds on single platform, allowing users to receive payments via the international SWIFT network and local payment systems. The accounts allow you to manage all the funds received locally and initiate payouts using the “Transfers” feature, which takes advantage of Airwallex’s broad network of payment rails across the globe.

This Business Account offers greater flexibility and cost-efficiency, compared to traditional banking methods.

How to send a global transfer in Hong Kong?

• Bank international remittance services: Traditional telegraphic transfers through banks or online banking transfer services directly send funds from your bank account to the overseas recipient account via the SWIFT network. Yet, the process can be slow and expensive, as they often come with exchange rates higher than the market rate and handling fees. The time needed can take up to 5 to 7 business days, and the process is limited by the cut-off time of the bank’s remittance service. Other factors to be considered include time zone variations and the intricacies of intermediary banks.

• Money changers: Money changers are also direct options for remittance services, but their procedures can be more complex and often incur higher costs due to real-time exchange rates and extra fees. The processing time for transactions can fluctuate and may take more than a day to complete. This method may be favourable for small transfers. However, for larger businesses that engage in global transfers regularly, currency conversion fees and handling charges can eventually erode corporate profits as they accumulate to a larger sum.

• Airwallex, the all-in-one financial platform for global businesses: Airwallex provides efficient and cost-effective transfer options with favourable exchange rates. Airwallex comes with no account opening fees, monthly charges, or hidden fees. It supports international transfers in over 60 currencies to more than 150 countries,where 90% of transfers can be settled in as little as one business day, making it an excellent option for businesses that require prompt and stable global transfer solutions.

What should be considered before initiating a global transfer?

• Price, exchange fee, and hidden fees: Bank service fees, disadvantaged foreign exchange costs, and additional hidden charges can diminish profit margins as they pile up. Businesses should seek out platforms that offer low transaction fees and favourable exchange rates to reduce expenses.

• Delivery time: Traditional telegraphic transfers may take up to 5 to 7 business days, depending on the complexity of the transaction. Such delays can hinder cash flow and disrupt substantial orders. Businesses should opt for methods that provide stable and efficient transfer speed.

• Regulatory considerations: Different nations impose distinct foreign exchange regulations and controls. But most have actively relaxed their restrictions to facilitate global trading. For instance, commercial remittances from Hong Kong to China are not subject to foreign exchange control restrictions if they fall under the scope of current account transactions, which cover the general Balance of Payments (BoP) related to trade in goods and services. For remittances from Hong Kong to the US, funds can enter and exit freely without any declaration.

Why is Airwallex preferred by businesses to send money globally?

• Competitive transaction costs: Airwallex imposes no transaction fees via local rails and only applies a markup of as low as 0.2% above the interbank rates for foreign exchange. We ensure transparency in pricing, enabling businesses to plan their budgets effectively and eliminate the risk of unforeseen expenses related to global transfers.

• Rapid transfer speed: Global transfers can be completed as fast as within one business day. This quick turnaround is especially advantageous for businesses that need to maintain efficient cash flow across various regions.

• Extensive global reach: Airwallex supports over 60 currencies, covering transfers to more than 150 countries. This allows businesses to handle global payments seamlessly, regardless of the recipient’s location.

• Robust security and compliance: Airwallex is licensed as a Money Service Operator (MSO) and is regulated by the Customs & Excise Department. It implements sufficient security protocols, including security monitoring, data encryption, and two-factor authentication, providing reassurance for both businesses making global transfers.

How to open a Business Account at Airwallex?

First, visit the Airwallex website to sign up. Make sure you have all required documents on hand, such as your identification and business registration certificate, as these may be necessary for the verification process. It will only take ‌a few minutes to submit the documents, and your account will be verified in as quickly as 48 hours.

Frequently asked questions

Is it safe to make global transfers with Airwallex?

Yes. Airwallex is a licensed and trustworthy platform that guarantees secure international transactions. We employ stringent security protocols, including security monitoring, data encryption, and multi-factor authentication.

What are the fees associated with Airwallex?

Airwallex does not impose any transaction fees via local rails, and applies a markup at as low as 0.2% above the interbank exchange rate for FX. We do not have any hidden charges either.

How long does a global transfer usually take with Airwallex?

It usually takes as fast as one business day to complete a global transfer.