Overseas Purchases for the Ordinary Man, er Person

[eightyknots]

Last year I bought an aircraft kit. This required me to send a large amount of $$$ offshore. At the time I used a Forex broker, and it worked out okay, though the money vanished for a week, which was exciting, and I was reduced to getting the recipient to check his account daily until it magically emerged again.I was gleefully informed, when I bought the kit, that I would soon become a regular customer of various aviation parts suppliers, and that is exactly what is now happening. Which raises the question of how to transfer payment for the steady stream of interesting packages now making their way to my front door.

 

Please note, the following figures are all approximate, and at current rates from Australia.

 

If I send $1000:

 

1. By Credit card, I am charged the conversion at current bank rates, plus a 2.5% surcharge on the original amount.

 

The banks appear to be taking approx 4% at conversion, so:

 

$960 arrives, and I pay $1025 for that to happen.

 

2. By Telegraphic Transfer, I am charged the conversion at current bank rates, plus a transaction fee of $20. (I believe there is also a receiving fee if the recipient is a bank, eg $30 in the US, but ignore that for now).

 

This comes out at $960 arrives, and I pay $1020 for that to happen.

 

3. By PayPal. I don't have the numbers or rates for this. Anyone????

 

4. There is a relatively new web based service. I have no involvement with them, and this is not an advertisement, but i thought it may benefit others to know. It's growing like Topsy, and Richard Branson has a slice of it. Can someone tell me if I can name it here?

 

I just tested it by sending $1000.

 

First time off you have to supply a scan of your passport, or driver's license (just as you do for a Forex trade). For the transaction , you must supply the Swift code, account number, and physical address of recipient bank (again, as you do with a regular Forex trade).

 

The result was a conversion at the true market rate (approx 4% better than Autralian bank conversion rates) and a fee of $6.96.

 

Expressed as per the above examples $993.04 arrived, and I paid $1000 for that to happen.

 

But wait, there's more:

 

Total time for transaction, including once only ID check, 3 working days.

 

Emails received at each stage, effectively tracking the money and informing me of progress: for this trial (Oz to NZ) I received 3 advisory emails over the 3 days.

 

I'm pretty new to all this. But since I can see only $$$ flowing offshore in the coming years, I would welcome any comments or suggestions around the whole business of sourcing and paying.

 

Right now, I am working on purchasing some parts in the US. And right now there is a distinct pause while the company concerned figures out if it is prepared to consider a direct credit in this manner. I'll let you know.

 

Bob

That is pretty helpful. I will keep it mind when the purchasing starts.

 

One of my banks charges me $30.00 for a transfer (a "telegraphic transfer" -do they really use Morse code for this?) and with another bank, it can be done on-line for a $20.00 fee. Both banks have quite a loaded exchange rate regime and there is very little difference between them. My credit card is worse but would be better for smaller transactions.

 

Last year I bought an aircraft kit. This required me to send a large amount of $$$ offshore. At the time I used a Forex broker, and it worked out okay, though the money vanished for a week, which was exciting, and I was reduced to getting the recipient to check his account daily until it magically emerged again.

Am I correct in the assumption that you're referring to the ICP Savannah kit? Does that mean we have to pay the ICP factory directly?

 

 

[Downunder]

Thank you, Downunder. I just ran a simple A$1000 to NZ$ conversion on the Currencyfair calculator, and they look pretty much on a par with TW.I'm deliberately not reporting down to cents here, as i doubt it's possible to compare to that level of accuracy, online, on the weekend, as an ordinary punter using generic online calculators. If anyone is interested, I'm still with TW, but we are certainly throwing up some good alternatives.

I'm now also using "Transferwise". Easy to see transfer costs and quotes on their homepage.

 

 

[IBob]

That is pretty helpful. I will keep it mind when the purchasing starts.One of my banks charges me $30.00 for a transfer (a "telegraphic transfer" -do they really use Morse code for this?) and with another bank, it can be done on-line for a $20.00 fee. Both banks have quite a loaded exchange rate regime and there is very little difference between them. My credit card is worse but would be better for smaller transactions.

 

Am I correct in the assumption that you're referring to the ICP Savannah kit? Does that mean we have to pay the ICP factory directly?

Hi Hank, I bought my kit from Reg in Oz, so paid him.

There is now a NZ (sub) agent, so I would think all NZ kit purchases would now be through him in NZ$, and so no overseas funds required.

 

However, you will still require an engine, prop, radio etc and a variety of other bits and piece further down the track, and there can be real savings (and pleasure) in sourcing some of these yourself.

 

 

[IBob]

I'm now also using "Transferwise". Easy to see transfer costs and quotes on their homepage.

Thanks, Downunder.

Transferwise is now fully functional both in and out of NZ, and I have used it both ways a number of times. After the initial (setup) transaction, it becomes very quick and easy.

 

The required transaction information varies a bit, depending on the legislation of the country you are transferring from/to, but there is a section on the website that tells you what you will need.

 

It may not be so economical for very small amounts of money (there may be a minimum fee?), but that is easily checked, as the home page gives clear instant quotes and there are no other hidden costs: WYSIWYG unlike the folk with the stripey suits...

 

 

[farri]

. I'm pretty new to all this. But since I can see only $$$ flowing offshore in the coming years, I would welcome any comments or suggestions around the whole business of sourcing and paying.Bob

Bob, This morning I paid for parts I`d ordered, by direct bank transfer, into the bank account of the supplier of the parts! Total cost: The cost of the parts! I`ve done this type of transaction numerous times and I`m not aware of any fees charged by either bank.

 

First time off you have to supply a scan of your passport, or driver's license (just as you do for a Forex trade). For the transaction , you must supply the Swift code, account number, and physical address of recipient bank (again, as you do with a regular Forex trade). Bob

I wouldn`t supply a scan of my driver`s licence or passport to anyone, over the net!

 

 

[IBob]

Bob, This morning I paid for parts I`d ordered, by direct bank transfer, into the bank account of the supplier of the parts! Total cost: The cost of the parts! I`ve done this type of transaction numerous times and I`m not aware of any fees charged by either bank.

 

I wouldn`t supply a scan of my driver`s licence or passport to anyone, over the net!

Hi Farri, if you'd like to give us the numbers and country of supplier, I would be happy to run them for you.

 

 

[farri]

Hi Farri, if you'd like to give us the numbers and country of supplier, I would be happy to run them for you.

Thanks Bob, I appreciate the offer but there`s no need....Cheers.

 

 

[IBob]

Thanks Bob, I appreciate the offer but there`s no need....Cheers.

Sure....or just go to Transferwise website and button in the numbers on the calculator there...it's that simple.

 

 

[jetjr]

Not to do with currency but there are some freight forwarding companies in US that can help save freight costs on multiple small orders, OPAS being one

 

You get a personal US PO box, you order and send all your stuff to it, within US is often free from supplier. It also works with evey online shop you can see with no International problems.

 

Upon your instruction they collect several items, can even unbox and compact into one carton then send via FedEx or whoever

 

Have to watch value though as combining orders can tip you over $900 limit for AU gst.

 

 

[Ron5335]

I see the original post is about 12 months old, and there is a new player on the block.

 

World First.

 

World First | International Money Transfers

 

I used them a couple of months ago to bring in a new diesel injector pump for the tractor we use to mow the strips.

 

Here, it's available off the shelf in a factory sealed bag from Qld for $AU2,200.00

 

Deal direct with the manufacturer in Romania, and it was delivered in a factory sealed bag in a well padded box, by TNT Airfreight for

 

$AU568.00. (Freight was $AU110.00)

 

A classic example of where Agents only add to the price of a product, without improving it in any way)

 

 

The all up costs for using World First was $20,00 and they have offices in Australia, so you get assigned an employee who keeps you informed by either emails or mobile phone.

 

If you know you have a purchase coming up, you can view the fluctuation with the currency exchange and lock the deal in without putting the money up front.

 

It was a hard to decide who offered the best service, World First, Mefin in Romania or TNT Airfeight (With their continual updates of where my pump was)

 

 

[IBob]

I see the original post is about 12 months old, and there is a new player on the block.World First.

World First | International Money Transfers

 

I used them a couple of months ago to bring in a new diesel injector pump for the tractor we use to mow the strips.

 

Here, it's available off the shelf in a factory sealed bag from Qld for $AU2,200.00

 

Deal direct with the manufacturer in Romania, and it was delivered in a factory sealed bag in a well padded box, by TNT Airfreight for

 

$AU568.00. (Freight was $AU110.00)

 

A classic example of where Agents only add to the price of a product, without improving it in any way)

 

 

The all up costs for using World First was $20,00 and they have offices in Australia, so you get assigned an employee who keeps you informed by either emails or mobile phone.

 

If you know you have a purchase coming up, you can view the fluctuation with the currency exchange and lock the deal in without putting the money up front.

 

It was a hard to decide who offered the best service, World First, Mefin in Romania or TNT Airfeight (With their continual updates of where my pump was)

Excellent! Thanks for the update.

 

 

[Ron5335]

On second read........

 

The $110.00 freight was included in the $568.00.

 

So the $2200.00 injector pump (Here), left the factory at $450.00 (And they still made money on it.)

 

Plus I got a full parts list, technical specs, and a fully detailed step by step instructions on How to covert a Bosch system to a Delphi/ Lucas CAV

 

system, Including timing set up.

 

In Au all you get is the pump in a sealed bag and directed to a diesel mechanic to work it all out.

 

If you want to stay with Bosch, you will have to get the current the Va4 pump for

 

$3,500.00 (Because the parts for the older Bosch pumps are obsolete)

 

Be Careful It's a jungle out there !!!!

 

 

 

 

 

[Kyle Communications]

I now use Tasman for my overseas funds transfers they are even better than Fourex used to be. I just recently purchased a BRS from Galaxy in the Czech republic and it was all seemless and took less than 2 days. The chute should be here next week actually. You should try getting a "dangerous goods" purchase in ..wow its been a exercise. Brynn from leading Edge Aviation can do this for you as he has all the appropriate licences to import this stuff. We buy literally millions of dollars worth of goods from overseas yearly for the stuff we make at work and have been using Tasman there as well and there has never been a stuffup. But recently my boss decided to use Commbank for a recently purchase for a change to make sure we were getting good rates and its been a right balls up. Commbank lost 2 transactions and the money has still not been returned to us this was several weeks before xmas. So we did the main transfer with Tasman and no issues all done correctly. Their exchange rate is something silly like .3 cents on the dollar and fixed fee of 15 or 20 bucks on literally onetime payments of 100k Tasman do though have a minimum amount though of about 2 or 3K I think.

 

Mark

 

 

[IBob]

All good stuff!

 

My original point, a year ago, was that traditional overseas payment methods for the ordinary Joe/Jane were expensive, and that various much better options were coming online. The conversation since indicates that our options are increasing. I have also been made aware of various systems for moving small amounts of cash, something I was totally unaware of. Thanks for that, Kiwi.

 

For my own (uncomplicated) transactions, I am still with the same simple online service.

 

For others who may be interested, the routine goes like this.

 

1. Get supplier to quote, including freight. Get supplier's bank account details.

 

2. Initiate transfer to supplier's account. This involves entering the necessary details online, then direct crediting the required sum into a local account.

 

3. Progress of funds (arrival in local account/paid out to account of destination) are then automatically emailed to me.

 

4. Funds arrive in supplier's account, typically one day later.

 

All up cost of this (in NZ) is price quoted, converted at true market rate, (not bank buy/sell rates) plus 0.7% That's $7 per $1000.

 

 

[IBob]

Looks like there may be some value in reviving this thread. I'm still using the same system, but since the last post there must have been all sorts of good developments.

 

Also since the last post, the small Forex trader I used to make my original kit purchase, has found himself inside for fraud. I don't know, but I imagine once DIY online forex options arrived, it would have put a squeeze on existing forex traders. After that, once the money required out of the other end exceeded the money going in this end, the music would have stopped.

[onetrack]

IBob, you asked way back, as to PayPal charges/fees. They're listed below. They're not much different to the men in striped suits for reaming you out.

 

https://www.paypal.com/au/webapps/mpp/paypal-fees

[IBob]

Thanks for that, Onetrack.

[Head in the clouds]

I'm amazed no-one has mentioned XE.Com. When I began importing I researched all the money transfer methods I could find, and XE were way ahead of the rest. I have never had a bad experience.

 

XE has been around for nearly twenty years and in 2018 merged with their major competitor/sister company HiFX and continue to trade, combined, as XE.Com.

 

Forex transfers from banks, credit cards, Paypal etc will typically cost you 6-10% in their margins as well as many charging fees as well.

 

XE don't charge any fees at all and their margin, in my experience, has been typically less than 0.1%. The transfer takes place within 24hrs of your settling the account (usually more like 6-12hrs). You complete the Forex purchase online and then have 24hrs (max) to settle the purchase with XE.Com. If you use Billpay they will make the transfer the next day, if you use Osko or similar instant transfer methods, they will make the Forex transfer as soon as they receive the funds from you.

 

On several occasions I have received notification from the recipient of the funds within 4hrs of my making the online Forex arrangement.

 

If you are buying privately from overseas you set up a private account with XE, if you are buying as part of a business you must set up a business account. Both are essentially the same and the margin is the same, it's just that business accounts must satisfy the international money laundering regulations.

[IBob]

Giving this thread another bump.
It's about making overseas purchases, especially larger ones, without getting screwed by the financiers with a combination of transaction fees and loaded conversion rates. Simply put, Transferwise (and several similar providers) transfer funds internationally at the true conversion rate and for a very modest transaction fee.

 

What was Transferwise now calls itself just Wise, and has steadily increased the number of countries it operates to and from, while also reducing transaction times.

I'm still with them, though my overseas expenditures have mercifully tapered off.
But I still get that happy warm feeling that I'm poking the bankers in the eye with every transaction.

 

I reccomend anyone interested to visit their website. It has a simple calculator showing the conversion rate and cost of a proposed transaction.

[spacesailor]

Does it ' cut out ' those exorbitant postage costs .

That double your purchase price, IF it even gets delivered. 

I am in need of " wicks " anchor nut  ' ms21069 ' 6-32 ( the smallest ) thin 5/32 thread with two 3/32rivets .

Cheap as chips until that postage hits .

spacesailor

[Blueadventures]

24 minutes ago, spacesailor said:

Does it ' cut out ' those exorbitant postage costs .

That double your purchase price, IF it even gets delivered. 

I am in need of " wicks " anchor nut  ' ms21069 ' 6-32 ( the smallest ) thin 5/32 thread with two 3/32rivets .

Cheap as chips until that postage hits .

spacesailor

Try Bolly props, i'm pretty sure that is the size they use for their spinner kits (spinner to backing plate).  I have some 3/32 rivets I'm happy to post to you. Cheers.

[spacesailor]

Many thanks.

I have rivets. Just lost a packet of nut plates  ( anchor nut plates) .

spacesailor

[Blueadventures]

17 minutes ago, spacesailor said:

Many thanks.

I have rivets. Just lost a packet of nut plates  ( anchor nut plates) .

spacesailor

Did you try Bolly for the nut plates?

[spacesailor]

Not yet , as I find it complicated,  not just a quick trip to Buhhings .

But I did look , also checked the facebook sight too .

spacesailor