There comes a time in every business owner's life when she must complete a business-to-business or B2B money transfer. Much like any other business decision you make, taking a little time to investigate and compare your options will help to ensure that you get the most out of your money transfer transactions.

Any time money is involved you should pay careful attention to who you're dealing with, investigate hidden fees and keep track of what goes out and comes in. You can meet all of these needs by making the most of money transfer services, which means:

1. Make sure that you're using the right money transfer service.
2. Compare fees to see if you could save by dealing with a different company.
3. Follow a few simple tips to avoid money transfer scams and fraud.

Action Steps
The best contacts and resources to help you get it done

Weed through the various money transfer companies

One of the easiest ways to make sure you're dealing with the right money transfer company is to visit overview websites that detail what each company or type of company is capable of doing. Comparing each company's abilities with your needs will help you make the best money transfer business choice.

I recommend: Money Transfer Guide gives tips for selecting the best money transfer services. MakeUseOf.com shares information about how to transfer money through your mobile phone with established services such as PayPal, plus a few options that can be used through your computer.

Crunch the numbers before sending money

Not only do different money transfer services charge different service fees (which may sometimes change), they typically charge different fees for different amounts of money transferred or different transaction types. There is no central resource for money transfer fees; instead you'll need to carefully read all money transfer agreements you sign, online or in person, for statements of fees. Some services offer fee information on their websites, too.

I recommend: OANDA offers a money transfer fee calculator that allows you to compare their fees to those of companies using other transfer rates. The PayPal Fee Calculator lets you calculate how much of a fee you would incur through various PayPal transaction scenarios, and includes helpful links to other fee calculators.

Avoid fraud by wiring money intelligently

As a general rule you should only deal with established money transfer companies that you have approached. If they approach you, it may be a fraud. Keeping current on the latest money transfer scams and training your employees with simple tips -- like not accepting money transfers from anyone they don't know -- will help protect you from unexpected losses.

I recommend: Western Union and Spam Laws both provide useful tips to help you avoid falling victim to money transfer fraud and scams.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If your company conducts frequent money transfers in large amounts, you might save in both transfer fees and the money spent on communication -- faxes, employee time for making the transfers, and so on -- by installing specialized money transfer software from a financial consulting firm.

As the world becomes more and more intertwined, transferring money becomes more of a necessity as people and businesses need to conduct monetary transactions with many miles and oceans between them. As the need for wiring money has grown, so have new wire transfer businesses that are looking to fill this need.

The new money transfer solutions offer more flexibility and reliance on electronic sending and receiving of funds than their older counterparts. The newer money transfer companies also offer competitive rates and more countries where money can be sent.

Businesses using money transfer companies should keep a few things in mind:

1. The flexibility each company offers. In today’s fast paced world of instant connections, you want a money transfer solution that is as flexible as your business needs demand.

2. Businesses are always looking for ways to save money, so looking at the fees associated with money transfer companies is a way of keep your eye on the bottom line.

3. Beware of the many scams associated with wiring money. Make sure the person or company you are doing business with is reputable.

Action Steps
The best contacts and resources to help you get it done

Determine what's more important to you: flexibility or familiarity in a wire transfer

Western Union and Money Gram are the best known and the largest of the money transfer services. Since they are the most popular, they are also the most used and have the highest fees and in many cases offer restrictions on what type of payment they will accept when trying to wire money. Many of the newer money transfer businesses offer lower fees and fewer restrictions when sending money to be transferred.

I recommend: Consider Xoom’s money transfer service because they place an emphasis on electronic transferal of money, which cuts down the need to find a location to send or receive your funds.

Understand the fees associated with wiring money

It's important to be aware of the fees associate with wiring money, as they can drastically affect the amount the intended receiver actually ends up getting. Most wire transfer services base fees on not only the amount of money being sent but the destination it is being sent to as well. The further the money has to travel, the more money it will cost you to send it.

I recommend: Try iKobo money transfer because you can send up to $1000 anywhere in the world for just $5.

Beware of scams associated with transferring money

Many scam artists use money wiring services as a way to part you from your money. It is important to be wary of any person or business that wants you to wire money to them as the only way to conduct business with them or pay for a service or product.

I recommend: Western Union’s guide Protect Yourself From Fraud gives a detailed look at how to avoid the many ways one can be scammed when conducting business using wire transfers. If you completed your wire transfer online and you feel you been defrauded, contact the Internet Crime Complaint Center.

Start your own money transfer service

Instead of paying wire transfer services to send your money, start your own money transfer business. It is not as difficult as it sounds. With the right agents, commitment and money transfer software, you can begin wiring money for people and companies across the world.

I recommend: Remit Anywhere offers money transfer software that allows you to initially set up your business for free.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  White Wings Consulting offers money transfer software that doesn't require any software to be loaded on an agent's computer, so it offers a convenient solution to agents that may be spread across the country.

The idea behind money transfer services is pretty simple: You have money at your location or in your business bank account that someone else needs. If sending a check isn't appropriate or fast enough and you're not in a position to use a credit card, your next best option is sending money through a specialized service.

Money transfer companies have offices or bank agreements that allow them to collect money at one location and then distribute it at another. In return for providing this service — the physical arrival of your money at its designated destination — they will collect a fee that may vary. Read on for money transfer services basics that include:

1. Understand different types of money transfer companies.
2. Decide whether you need specialized software.
3. Make sure your money can get where it needs to go.

Action Steps
The best contacts and resources to help you get it done

Sort through various ways of sending money

The first step toward understanding the many options for wiring money is to decide whether you want to send money online (over the computer or a mobile phone), offline (in person at a bank or money transfer office) or by telephone. You should also consider what your source and destination currencies will be and how soon you need the money to arrive. Then use the information you've gathered to see which money transfer services are a good match for you and your business.

I recommend: The Money Transfer Guide walks you, step by step, through how to transfer money both online or offline. Icici Bank, an Indian bank that offers its own niche money transfer service, explains the difference between an offline or online wire transfer and offers a helpful money transfer FAQ.

Investigate money transfer software

If your business consistently transfers large amounts of money, you might need specialized software to track your transfers. Software lets you conduct the bulk of your business directly from your desktop, and should only be purchased from an established consulting firm that can make sure you're fully trained in how to use it.

I recommend: Pristine Consulting produces a money consulting software product called Cashpoint that allows users to directly send and track the transfer of money, as well as aggregating and analyzing other useful corporate information such as profit margin. Learn more about bank money transfer software systems like ACI Worldwide.

Find a money transfer business with the right destination in mind

While some niche money transfer companies deal specifically with transfers to and from a specific country (such as India), you'll probably want to deal with a money transfer company that has an established international presence in multiple countries. This makes it more likely that they will be legitimate, as opposed to a clever fraud; it also expands your options of where to deliver money while still dealing with a trusted business partner.

I recommend: PayPal Merchant Services offers world-wide transfers of money online, with a Recommendations Wizard to help you choose the right service for your business. Xoom is another online money transfer service that operates in a number of countries and includes an informative FAQ.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure there is a guarantee or refund policy in place if your money is not available where it needs to be and when it needs to be. Make sure that the company you choose to deal with also refunds all fees collected from a failed attempt to wire money, too.

There are many options for transferring money and a variety of fees associated with those options. Businesses need to be knowledgeable about the ins and outs of sending money in order to ensure that money transfers are smooth, inexpensive, quick and free from fraud. The following terms are important when selecting the money transfer options that work best for your business.

Action Steps
The best contacts and resources to help you get it done

Money transfer company

Money transfer companies specialize in sending money for a fee. These companies send money to be picked up by a recipient in the form of cash, debit card, wire transfer, check or debit card.

I recommend: For an overview of money transfer companies as well as safety issues and questions to ask prior to choosing a money transfer company, read the information posted by Consumer Action.

Money transfer software

Money transfer software allows companies and small businesses to transfer money from one account to another by using the money transfer software loaded on their computer.

I recommend: ACI Worldwide is an example of a company providing money transfer software to businesses. Their website includes detailed information about what money transfer software can do.

Wire transfer

A wire transfer is simply another name for the electronic transfer of money.

I recommend: To learn how to make a wire transfer and for a summary of how wire, review the information at Transactmoney.com.

Prepaid debit card

Prepaid debit cards are becoming very popular with money transfer companies. These cards work exactly like bank debit cards or check cards. Instead of picking up cash, the recipient is given a prepaid debit card with the amount of money specified by the sender placed on the card.

I recommend: AccountNow lists advantages of using prepaid debit cards, as well as addresses safety concerns.

Transfer fees

Any type of money transfer transaction has a fee attached to it. Money transfer companies vary in the fees they charge, so it's important to choose the company you use carefully.

I recommend: Get more information on wire transfer fees at PageTech.

Currency exchange rate

The currency exchange rate is the amount of money one currency is worth when exchanging it for another currency. This is also known as rate of exchange, foreign exchange rate or exchange rate.

I recommend: Look to MSN Money for a current currency exchange rate comparison of the world's major currencies.