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Anyway to lower fees on payments for outsourced contractors?

by danw76
7 replies
I have a team of contractors working for me in the Philippines. I currently pay them twice a month using paypal. The problem is paypal takes 2.5% in the currency conversion and charges me ~2% for the doing the payments. Those fees add up (~4.5% on every payment) as they are skimming hundreds of dollars from me every month.

Does anyone have an idea of how I can reduce these fees?
I had a crazy idea of finding a forex broker (which currency conversion rates are a lot lower) . . .and withdrawal into a Philippines bank, however forex brokers don't seem to work that way.

Anybody have another idea?. . This is very frustrating.
#contractors #fees #lower #outsourced #paying #payments
  • Profile picture of the author marketinguk
    Hi Dan, I really understand your frustration i'm pretty fed up with Paypal's fees too as many others on this forum as too.

    Am I right in presuming there's no way for you to pay them directly into their bank by a wire transfer or something like that to avoid the fees of going through someone like Paypal?

    Joel
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  • Profile picture of the author SUPER Louie
    I am from the Philippines. These are a few alternatives:
    - Xoom
    - Moneygram

    Read about it here:
    Online Money Transfer to Philippines -- Paypal, Xoom, Moneygram, Western Union | Working Pinoy
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    A superhero is someone who knows how to be quiet, shed a tear for a moment, then pick up his sword, and fight again!
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  • Profile picture of the author danw76
    Thanks Joel,
    Like paypal, wiring funds is also has a fixed charge $10-25 or more depending on the bank and also has horrible exchange rates. Also, sometimes banks also charge for incoming wire transfers (which might be the case in the Ph).

    I'll try xoom and moneygram, but it seems to me that as bad as paypal's fees are, they are more than competitive in this space. . . which kind of stinks. . .

    I have no problem giving people money if I get something out of it. These guys just don't seem to be doing very much work for their money

    So. . . my new plan is to give up my internet businesses and get into banking. . . as it seems that is where the easy money is . . .(when you can't beat them . . )
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    • Profile picture of the author marketinguk
      Originally Posted by danw76 View Post

      Thanks Joel,
      Like paypal, wiring funds is also has a fixed charge $10-25 or more depending on the bank and also has horrible exchange rates. Also, sometimes banks also charge for incoming wire transfers (which might be the case in the Ph).

      I'll try xoom and moneygram, but it seems to me that as bad as paypal's fees are, they are more than competitive in this space. . . which kind of stinks. . .

      I have no problem giving people money if I get something out of it. These guys just don't seem to be doing very much work for their money

      So. . . my new plan is to give up my internet businesses and get into banking. . . as it seems that is where the easy money is . . .(when you can't beat them . . )
      Hi Dan, yeah Paypal really suck but whilst there are some alternatives like 2checkout etc. many people also only deal with Paypal.

      The fact is we may find them a pian and they are but until something comes along to really knock them off their perch then we'll still be frustrated with them.

      Rant over LOL.

      Joel
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    • Profile picture of the author Joe Mobley
      Originally Posted by danw76 View Post

      I have no problem giving people money if I get something out of it.
      Let me suggest that you do get something out of it. You get to have International clients and contractors. You get to save big money on services because you can outsource. Many people would not or could not be in IM at all if it weren't for PayPal.

      If you find a better service than PayPal, by all means use it. Then let us know about it.

      Originally Posted by danw76 View Post

      These guys just don't seem to be doing very much work for their money
      Isn't that where we're trying to get to?

      BTW, I lived in the Sterling area some time back.

      Regards,

      Joe Mobley
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      Follow Me on Twitter: @daVinciJoe
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  • Profile picture of the author icoachu
    You can also try Filipino direct fund senders. You deposit into their bank account and they notify local contacts that deliver the funds to your recipient. Supposedly the rates for this is 1% and the exchange rate is the ACTUAL XE rate at the time you deposited the money.

    The downside is the TRUST factor. Beware of scammers.
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