Whether you’re purchasing something online or conducting a business with various clients overseas, there is a chance that you may have to deal with how you will send or receive money. Today, this isn’t exactly a new concept since there are countless money transfer options available that you can use, but which one is the best?
Here are some tips on how you can compare international money transfer options and look for the best, so your payments will be sent or received fast and protected.
International Money Transfers and How They Work
These help people send money overseas. They operate online or in various locations within your area, and often come with different options that may be provided through money transfer, bank-to-bank services, and wire cash through global remittance.
Here are the steps on how to be engaged in international money transfer online:
- Open an account with their service or website.
- Connect your account with an existing and validated bank account or credit card. If there is no bank account or credit card available, some companies allow over the counter transactions.
- Validate your account with security verification protocols like phone number and email confirmations, bank confirmations and others.
- Once you have loaded up and validated your account for security purposes, you can check what services they are partnered with. For example, that service could be affiliated with Paypal, Xoom or other remittance partners, which means you can directly transfer your money there.
- After stating which country you wish to send it to by using the recipient’s IBAN (International Bank Account Number) or SWIFT number and the recipient’s account number, the service will then process said transaction for you. Some services only need the recipient’s full name and email address.
Determining Which One Works Best
Globalization has made it possible for people to easily do their transactions in several ways. There are several options currently available and you may wonder which of the aforementioned choices work best for you.
To do this, try to answer some of these questions:
● Do you need to send money to work or travel? If yes, then you can consider doing bank-to-bank services, especially for those banks with mobile banking apps.
● Do you have bank accounts in both countries? Or does your recipient have a bank account in their country? If you answered yes to both questions then you have the option to use money transfers, especially those companies that allow bank transfers from their app.
● Are you sending large amounts of money? (for instance, larger than USD $1,000?) Wire cash services, bank to bank transfers and money transfer companies can all accommodate large sums of cash, however they may differ in processing time. To be sure, you should check their FAQ or ask customer service about the process.
Additionally, you may also need to consider some of the additional factors that come with these services. Some of which include:
● Fees and charges – international money transfers make money by charging a transfer fee and applying a margin to the foreign exchange rate.
● Processing time – while most money transfers can send money within minutes, there are still factors to consider like the conversion rates and others.
● Collection options – certain money transfer companies offer various options for recipients to get their money such as direct bank deposit or in-person pick-up options.
● Payment options – some companies may allow clients to make a payment using a debit or credit card.
● Transfer fees – this refers to how much it will cost you to make an international payment
● Exchange rates – this refers to what rate you are going to get. Certain money transfer services often provide attractive exchange rates compared to bank-to-bank transfers which are more costly.
● Minimum and maximum transfer amount – certain companies may require a minimum and maximum amount in which may include discounts depending on their policy.
● Customer Service – when it comes to making a transfer or addressing any other issues, a reliable company often provides a number where one can reach their 24-hour customer service system. Take note on how quick they are to respond to issues like cancelling or amending an international payment and whether or not they are able to answer your inquiries succinctly.
With these differences and factors in mind, one can make a better choice in deciding which international money transfer system works best. For additional security, be informed what are the current foreign exchange rates and call up the company to ask for a quote. This allows you the chance to make the comparison between different services, which is essentially helpful if you are looking for services with competitive prices. Good luck.