What Is Veem and How Does It Work?

In the increasingly globalized world, international trade is only growing. In 2021 alone, from January to October, US exports increased by $31.7 Billion, with imports increasing by $30.5 Billion.¹ ²

For this reason, businesses need to use services that can support their international operations and finances, as well as supporting them in their home market.

This is where services such as Veem and Wise come in.

Wise Business can help you take control of your international operations. Manage your multi-currency cash flow with ease, pay invoices in 160 countries and expand your business.

Learn more about Wise Business

What is Veem?

Founded in 2014 with the intention of simplifying international payments, Veem is a payment processor that created a network for global transactions, designed to give control back to businesses.

They pledge to support businesses of all sizes, empowering them with the help of financial tools and negotiating power.³

Veem allows for the receiving and sending of domestic and international payments, without many of the fees charged by traditional banks.

How does Veem work?

Here’s a quick summary of Veem’s features, with a side-by-side comparison of Wise’s features.

Feature	Veem	Wise
Account set up	Free to open a basic account, $19.99 for the premium account.	Free to open a business account in the US
Payments	Utilizes blockchain technology for speed and security	Utilizes the mid-market exchange rate for international transfers, saving you money
Payment time	2-3 business days but can take longer	0-4 business days sending from USD, depending on the payment method
Fees	3.5% Veem fee to pay with credit or debit card 1% fee for instant deposits Fee of $29 USD for international payments when receiving in USD. $40 on transactions over $10K.	Fee for sending varies depending on the currency being sent, the amount, and the method of payment. You can see the exact amount you’ll pay in fees using the Wise fee calculator
Safety	Registered with FinCEN, FINTRAC & AMF.Built-in risk management software. Utilizes blockchain technology and encryption to protect payments	Registered with multiple regulators across the world, with state licenses in the US. Fraud and data protection, as well as two factor authentication. Safeguarded customer funds, keeping your money separate from Wise’s own business accounts
Card	Debit Card	Wise Business card
Application	No mobile app offered⁴	Mobile app available

Let’s dive deep into these features now.

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Veem account set up

The first step to using Veem is setting up an account.

There are two options:

• The Veem basic account is free. This account can be used to send, receive, request and schedule payments anywhere that Veem services.

• The Veem premium account costs $19.99 USD. This account covers all the Basic plan features with access to additional time-saving features and automations

You’ll be asked for basic personal information, as well as details about your business, such as its name, address, country of operation, and the type of business it is.

From here, you’ll need to enter your banking information and verify your identity, so that you can receive and send payments. The last step in the chain is to verify your email address.⁵

After completing the necessary steps, your account should be verified instantly, although it can take a maximum of up to 3 days.⁶

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How do Veem payments work?

With the help of blockchain technology, Veem payments are secure, quick and cost-effective.

Due to the network of participating servers, all transaction information is public and tamper-proof.

To alter any of the information, a hacker would need to alter this information on the majority of participating nodes - a very difficult task.

On top of this, due to the decentralized nature of blockchain technology, intermediary banks and their associated fees are cut out of the payment process, saving you money.

All of this makes Veem a secure, quick and cheap means of sending and receiving money.

• When you make or receive a Veem payment, the money is converted automatically into the local currency.
• This means that the sending party is buying the Veem exchange rate.
• After this conversion, the payment will then be sent to the recipient using blockchain technology.⁶

Most Veem transfers take between 2-3 business days to process, though it can be longer depending on the receiving region.⁶

Sending payments from USD with Wise Business you can pay your suppliers and employees as quick as the same day! Transfer time will depend on the payment method you chose.

Send overseas payments with Wise

💡 Did you know?

When using Veem, ACH payments in the US and EFT payments in Canada are free.⁷ An Electronic Funds Transfer (EFT) payment is a catch-all term for electronic payments made from one bank account to another, including but not limited to: wire transfers, direct deposits, credit and debit card payments, and payments made via online banking. Automated Clearing House (ACH) payments, on the other hand, are a type of EFT, designed for low-value direct debits and direct deposits. ACH payments are processed in batch, meaning they take longer than regular wire transfers, but also cost you less. Read more about ACH and EFT

Also, Veem offers mass payments, recurring payments, invoice capture and 1099 tracking to support your business.⁷

In addition to all this, Veem integrates with Xero, QuickBooks Online and NetSuite.⁸

This integration with accounting software means your transaction information will automatically be loaded onto these programs, saving you time and effort.

You can also add your Wise Business account to Xero and QuickBooks for bank feeds.

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How to transfer money from Veem to a bank account?

If you’re wondering how to make a Veem money transfer from your Veem wallet to your bank account, then you’ll need to:

1. Click “Veem Wallet” on the left side of your dashboard

2. Click the “Withdraw” option

3. Enter the amount you wish to withdraw

4. Confirm the transaction

After doing this, your funds should appear on your account within 2-5 business days.⁹

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What are the fees Veem charges?

For local transactions (within the US and Canada), the majority of payments are free of Veem fees. The only instances where Veem applies its fees are with:

• Sending credit or debit card payments, in which a fee of 3.5% is applied

• instant deposits, where you’ll be charged a fee of 1%¹⁰

• international transactions, where Veem charges a receiver's fee of $29 USD when receiving payments in USD outside of the US. This jumps to $40 on transactions over $10K.¹¹

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Is Veem safe?

Veem is an authorized financial services provider across all 50 states.¹²

On top of this, it is registered with the:

• Financial Crimes Enforcement Network (FinCEN),
• Financial Transactions and Reports Analysis Centre of Canada (FINTRAC),
• and the Québec Autorité des marchés financiers (AMF).

It is also an Authorized Representative of Flexewallet Pty Ltd in Australia.¹³

In addition to its licenses and registrations, Veem boasts built-in risk management software.

Two-factor authentication, multi-level approval, encryption and intelligent risk automation technology are just a few of the features Veem offers its users.¹⁴

Live updates concerning your transactions are also always available, as transparency is a key value of Veem.

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Where is Veem available?

Veem classifies its payments as either ‘local’ or ‘cross border’.

Local payments are those occurring within the US and Canada.

Cross border payments refer to the rest of the world, in which Veem is available in 102 different countries.¹⁵

Cross-border payments between the US and Canada may be free with Veem, but what if your business relies on sending to or receiving payments from other countries?

This is where Wise comes in handy.

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Veem customer reviews

On the independent review site, Trustpilot, Veem reviews are overall positive - it has an average review score of 4.5 out of 5.

Users praise the ease of setting up and operating their account, as well as the responsiveness of Veem customer service to user issues concerning payments.¹⁶

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Alternative to Veem - Manage your international finances and cash flow with Wise

With the help of Wise’s business account, you can gain better control of your multi-currency cash flow as well as manage your payments in over 40 currencies.

In addition, Wise users praise the speed of transactions, price transparency and the money that it's helped them save. Reviews also focus on Wise’s responsive and helpful customer support team, in addition to the ease of setting up and operating an account.¹⁷

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also Send money to 160+ countries.

Read the guide on how to open a Wise Business account

Some key features of Wise Business include:

Major local account details to receive international payments with ease No monthly account fees just a simple one-off fee for account details Receive payments from e-commerce platforms (such as Amazon or via Stripe). Create invoices using the Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Batch payment options. Fast payment of up to 1,000 people.

Open a Wise Business account online

👉 Get local account details - such as routing number, Sort codes and IBANs - so your customers can pay you in their own currency.
👉 Get the mid-market exchange rate for your transfers when paying employees and suppliers abroad.
👉 Additionally, take advantage of Wise’s exchange rate tracker to get the best rates for your payments.

Co-authored by:
	Panna is an expert in business finance topics for the US, covering topics from invoicing to international expansion. She creates high-quality reviews on business finance tools and products with the aim to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

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Sources:

1. Bureau of Economic Analysis - U.S. International Trade in Goods and Services, January 2021
2. Bureau of Economic Analysis - U.S. International Trade in Goods and Services, October 2021
3. Veem - About us
4. Veem - Does Veem have a mobile app?
5. Veem - How do I create a business account with Veem?
6. Veem - FAQ
7. Veem - Domestic payments
8. Veem - Accounting integrations
9. Veem - How do I withdraw funds from my Veem Wallet to my bank account?
10. Veem - Local pricing
11. Veem - Cross-border pricing
12. Veem - Home page
13. Veem - Licenses
14. Veem - Trust and security
15. Veem - Countries served
16. Trustpilot - Veem reviews
17. Trustpilot - Wise (formerly known as Wise) reviews

All sources checked February 2024