In contrast, the transaction fees on the Bitching network are negligible, raising the possibility that Bitching could disrupt incumbent none-transfer services like Western union. ” Also, business people express their dissatisfying opinion towards the traditional transfer way and support the Bitching as an alternative way to make international money exchange. Compromising uses his own experiences to point out the problem of too much transfer fee In his articles” Why Our Business Will Begin Accepting Bitching? He says that, “The problem that Bitching addresses for us specifically is the current state of the international wire transfer system. The SWIFT system is terribly out of date and receiving these payments (>OHIO per year) is a Byzantine mess: 1) All f our customers pay an outgoing International wire transfer fee. This vanes from $10 to $50, depending on the country. 2) Some of our customers do not have USED denominated accounts; when converting to USED, the conversion rate varies widely – sometimes it’s within 1% of the rate on ex. Mom; sometimes it’s off by 8%. Since we require USED payment, this is a cost our customers must bear. 3) In the past, we were charged $18 per incoming international wire ; though recently we switched to a bank who does not charge this fee, it was time consuming to find a bank that charges nothing for this service. They also require a minimum balance (no problem). 4) Lastly – and this Is the most maddening – about half of our incoming wires are $15 to $30 short of what was sent. This Is the dreaded “Intermediary” fee.
The sender Is not warned when filling out the paperwork; and upon asking out bank if there’s any way to predict when this will happen, no one will tell us. 5) The wire transfer system does not operate on holidays – so someone in China could initiate the wire on the Thursday before Columbus Day, and It may not hit our account until Tuesday or Wednesday after Columbus Day. 6) Most of our customers send us their wire transfer paperwork to let us know the money is on its way. All of it is handwritten, and the the fax number of our bank branch.
Or their confused because they think they need the BAN code, which the U. S. Doesn’t use. We even had one who required the name of the branch manager! In short, the international wire transfer system is a total mess. On a $2500 order, we might get $2475, and it may have cost our customer $2600 to get us those funds. This is quite typical, and whether we bear the cost, or our customer does, it represents about a total 5% leakage of funds. If we could cut this to 0. %, the savings could either be passed along to the customer, or added to the bottom line. From his detailed expressions, the mess of banks transfer system and the inconveniences suffered by the customs are totally exposed. However, the money transfer between family and friends and between different economy units is so common and indispensable since they uses money to process good or service, to support other family members and do some transactions. The transfer fee between different banks are relatively high, sometimes a five thousands ARM transfer will cost you fifty ARM additional by the bank.
Some people may argue that banks need this money to ensure the progress of money transfer is safe and legal; however, the money taken from the bank is much higher than what they need to maintain their system work well. Because of the specialty of the banks, they do not keep their charge reasonable in order to attract customers; instead, the lack of competition put customers into a passive position to merely accept the unfair situation. Bitching, which accepted by some online shopping markets as the result of their little transfer fee, though still very immature, do serve as a cheap and convenient try to make none transfer.
This point is even more meaningful than it looks like, because the cut of transfer fee not only make people’s daily life easier, but also cut the cost of international transactions, which could break the constraints of different country in the world and serve as a catalyst to propel the international economy development. Also, the brand-new method of transfer could be a competitor to the banks, accelerating the banks to make changes to attract more customers. But a significant amount of work will need to be done before that vision can become a reality.
Since users dealing in Bitching abroad face additional risks, including security breaches and fluctuations in the Bitching exchange rate. The Bitching economy will have to overcome those challenges before Bitching can become a serious competitor to conventional money-transfer services. As a whole, Bitching do raise many questions, questions about how to make the economy system develop healthier, questions about how people could improve their life. Maybe Bitching are not a perfect solutions towards the existed drawback, but Bitching are a good try and do bring some contributions to the society.