The Best Ways to Transfer Money for Used Device Wholesalers

Wholesalers have a need for fast, secure, low-cost methods of sending and receiving payments. In the modern economy, there are many ways to transfer money, each with its advantages and disadvantages. Many business owners are concerned with finding the safest way to transfer money.

Some payment methods prioritize security, while others focus on convenience or international reach. The diverse market of money transfer options allows wholesalers to choose what best aligns with their business needs, whether it’s ensuring payment irreversibility, ease of use, or global accessibility. 

WeSellCellular has used both domestic and international payment services for over a decade. Based on our experience, we’ve identified the most reliable methods for wholesalers in the secondary device market. In this article, we’ll examine candidates for the most secure way to send money. 

Importance of Choosing the Right Money Transfer Option

In wholesale device transactions, payments are typically large, time-sensitive, and often involve cross-border transfers. These factors make choosing the right payment service crucial. Wholesalers need payment methods that are both easy to use and secure. A reliable payment option minimizes risks such as fraud, misdirected funds, delays, and payment reversals, risks that can negatively affect a wholesaler’s bottom line.

Wire Transfer: The Traditional but Trusted Method

Wire transfer is the most common form of payment in the phone wholesale industry, and the one that businesses are most comfortable with. Wire transfers are the most secure way to send money and are also the safest way to transfer money internationally.

A downside is the transaction fees—which are steep at $30 to $50 per payment—charged to the sender. The sender must be precise in sending to the correct routing and account numbers (remember these transfers can’t be reversed). Also worth noting, many wholesalers will only accept wires sent from a business entity (as opposed to an individual).

Pros: fast, secure, widely accepted and familiar.

Cons: high transaction costs to the sender, no way to correct misdirection errors.

Wire transfers are ideal for high-value transactions and international payments between trusted parties. The combination of speed, security, and irreversibility makes wire transfers the best way to transfer a large amount of money between known entities, making them a favorite for international payments.

ACH Transfers: Reliable and Affordable

ACH payments are sent on the Automated Clearing House financial network, which allows for inexpensive ($5 to $10) digital transfers between bank accounts. These transactions can take a few days, but are highly reliable. ACH transfers can be initiated digitally—via your banking app or website. It’s important to be aware that ACH payments can be reversed.

ACH is the fastest way to transfer money between banks in the U.S. and is a safe digital payment method, making it a popular choice for businesses managing regular payments. One of the key benefits of ACH is its affordability. Unlike wire transfers, which can be costly, ACH payments are much cheaper, which helps wholesalers save on transaction fees over time. 

For example, a wholesaler who regularly pays a U.S.-based supplier for inventory might set up ACH payments to handle these recurring transactions. With ACH, the wholesaler can ensure timely payments at a low cost, without the complexity of manual payments every time. Keep in mind that ACH payments can be reversed, offering an additional layer of security.

Cash on Delivery: A Trust-Based Option

COD (Cash On Delivery) transactions delay payment until the purchaser receives the goods, then pays the delivery company. While the name COD suggests cash payment, electronic or check payments are often used.

COD has a $10 to $15 service fee, making it an economical payment option. Buyers typically prefer it because they don’t have to pay anything up front. But it presents challenges to sellers, because it takes longer for sellers to receive the money, and there’s a risk that the payment could get lost in transit.

For these reasons, COD is primarily used in long-term business relationships that have a high degree of trust. It’s a secure payment method for wholesalers, but only if your shipping company is reliable and the transaction process is transparent. Modern digital tools enhance COD with better payment transparency and additional payment methods beyond cash (credit cards, mobile payments, checks, money orders). Examples of COD tools include services like Payflow and EasyOrder.

PayPal: Convenient Yet Risky for Sellers

PayPal is a longstanding online payment method that works similarly to ACH payments. PayPal could be considered the fastest way to transfer money online, as transactions between users’ PayPal Balances are nearly instant. However, it can take a few days to transfer the PayPal balance to a linked bank account. 

In PayPal, the buyer has a choice of payment methods. Many select credit cards to earn points and get favorable terms on their purchases. There is a 3-4% percent transaction fee charged to the buyer, making it a bit more expensive than some other payment methods.

PayPal is a secure online payment platform with proven security measures to avoid fraudulent transactions. If buyers are unsatisfied with their purchase, they can start a claim with PayPal through PayPal’s Purchase Protection program, which may refund the money by taking it back from the seller. This makes the platform a bit risky for sellers. Sellers can safeguard themselves against refunds by making sure their devices are exactly as described online (e.g., match the stated grade).

Despite the moderate risk to sellers, fast and flexible transactions make PayPal a popular payment method.

Net Terms: Building Trust with Business Partners

Of all the ways to transfer money, most focus on transaction speed. Offering “Terms” takes a different approach by deliberately delaying the date of payment. Terms are a special incentive for buyers, provided by confident sellers who are looking to incentivize purchases and are willing to wait for payment. 

The most common terms are Net 30 and Net 15. Under Net 30, buyers have 30 days from the transaction time to pay. This benefits buyers by giving them time to sell devices before they must pay for them, allowing buyers to purchase more devices and grow their businesses. Sellers using Net 30 or similar terms necessarily accept higher risk by not requiring immediate payment, but this risk can be worth it if Net 30 wins more business for the seller. WeSellCellular is itself an example of a business that offers Net 30 terms. Learn more about Net 30 terms in our guide to common payment methods.

If a buyer doesn’t pay, the seller may have to pursue collections and file a claim with their insurer. Because of the risks involved, Net 30 is usually only available to trusted business partners. When a seller can trust their counterparties, Net 30 or Net 15 is a strategic tool to increase business, in exchange for manageable risk.

Cryptocurrency: Innovative Yet Volatile

Among the various ways to transfer money, cryptocurrencies are a relatively new option. There are a variety of “coins” in circulation on the internet, with varying levels of soundness and stability. The best-known cryptocurrency is Bitcoin, and it is representative of crypto’s volatility, having experienced significant fluctuations on its way to a valuation of over $100,000 per coin. 

Crypto offers interesting tradeoffs for wholesalers. Accepting crypto payments may increase market activity and offer a competitive edge. Yet, the risks are clear: Crypto transactions require a different infrastructure than regular currencies and are inherently more volatile. As a new way to transfer money securely, Crypto is one of the fastest global transfer options, but it comes with increased risk.

Comparing the Best Ways to Transfer Money

Payment option	Speed	Cost	Security	Risk of Chargebacks	Ideal Use Case
Wire Transfer	Fast domestically, international wires can take up to 5 days	Moderate cost, typically a fixed fee, works best for large amounts	Good security, uses trusted bank infrastructure	Practically irreversible	Best for large transactions between trusted parties
Cash on Delivery	Payment happens at delivery; speed depends on the shipping option	Cost is generally moderate, but the operational burden is high	Medium-level security, depending on the shipping partner	High risk of seller refusal to pay	Okay for domestic buyers and businesses with a track record
PayPal	Fast payments	Roughly 3% transaction fee	High security	Substantial risk of buyer disputes	Good for buyers who prefer digital payment or small transactions
Net 30	Payment happens within 30 days of shipment	Low cost, high risk to the seller	Depends on the creditworthiness of the buyer	The risk is refusal to pay or delayed payment, depending on the buyer	Useful to increase business with trusted partners
Crypto	Fast, depending on the coin. Can be the fastest international payment option.	Medium risk. Requires holding a volatile asset, and conversion to USD can be time-consuming.	Depends on the coin. The transaction on the open ledger is secure, but the wallets and other infrastructure are less so.	Blockchain payments are irreversible.	Will have the most appeal for international payments. It can be used to attract business, as not everyone accepts crypto.

Having considered all the options, there are two basic recommendations:

1. For large transactions with trusted parties, use wire transfers.

2. For small transactions with people who prefer digital payments, use PayPal.

How to Choose the Safest Way to Transfer Money for Your Wholesale Business

Actionable Steps for Businesses:

• Assess your transaction volume and risk tolerance. Understand your typical transaction amounts, recipients, and risk profile.

• Verify recipient accounts. Be sure that you’re sending payment to the right parties.

• Use business accounts, not personal. Require your buyers to have a business account.

• Track all transactions. For proper accounting and risk management, track each payment.

There are many payment options available, all with strengths and weaknesses. Offering multiple payment options is a convenience for buyers and may increase transactions. Consider steering larger accounts towards wire transfers, smaller accounts towards PayPal, and offering crypto to international buyers.

WeSellCellular offers a variety of payment options. If you’re looking for a new distributor, WeSellCellular stocks a deep inventory of wholesale iPhones and wholesale Samsung phones. Buyers often choose to work with WeSellCellular on the strength of WeSellCellular’s grading. If you’re new to the business, you’ll appreciate our guide: Before you start a used cellphone business. 

Create an account with WeSellCellular, and you’ll find it's easy to start buying immediately.