People send money abroad for many reasons. They may do so to fund their overseas travel, make a payment to their staff, or to support a relative. However, what one often overlooks is the fact that the way you send money abroad decides how expensive the transaction will be. There are a large number of international money transfer companies that offer you varying terms when it comes to how much they will charge for their services.
It makes sense to carry out sufficient research about the money transfer companies, about what they offer and how much they charge. Doing so could save you a substantial amount of money. It is for you to decide whether a WorldRemit money transfer or a Western Union money transfer suits your needs more.
To help you decide the best way to send money abroad, we’ve put together a list of various ways you can send money abroad, to help you make a better and cost-effective decision.
Different Ways of Sending Money Abroad
Via Wire Transfers
People who need to transfer large sums of money abroad often use wire transfers to do so. This enables them to transfer money directly from one bank account to another. The thing about wire transfers is the fact that you have to initiate it in person. Though they do charge a fee for their services, the fact that there is the security provided by the banks at both ends of the transfer makes it worth the while when large amounts are being transferred.
TransferWise also facilitates bank transfers, but at much cheaper rates than conventional banks. For starters, their transfer fees are quite low. Secondly, they will exchange money at the mid-market rate and not even charge a mark-up on it. They offer as good rates, as you can expect on international money transfers. What’s more, they provide excellent customer service as well.
Via Transfer Go
This again is a good substitute for using banks to make international money transfers. This online international money transfer company is known for providing efficient service at honest to goodness prices. They allow you to fund an international money transfer by way of a local bank transfer. You are provided with the choice of using a standard option to transfer funds where the money reaches its destination in one day or a thirty-minute delivery one. Of course, the charges for faster delivery are higher. There is also a zero charge option for a slower three-day transfer option. One can choose the method of delivery that suits one the best.
While there are many ways of transferring money overseas at a reasonable rate, one does need to understand as to what constitutes the cost of sending money abroad before making one’s choice.
Be Aware of the Exchange Rate
This is a very important component of how expensive or cheap an international money transfer will work out for you. There is no uniformity in what international money transfer companies will offer you as an exchange rate and you have to be wary of those who would offer you a poor exchange rate. That is how many international money transfer companies make money off you. It makes good sense to compare the exchange rate offered to you with what Google or XE show you, to avoid overcharges.
It Is Good to Know the Service Charge
It doesn’t matter what international money transfer companies claim about their service charges, you need to dig a little deeper and look at what is the total cost being incurred by your transfer. It may be that they may offer you a low or zero service or transaction charge, but add a margin on top of the mid-market rate.
It’s a good idea to go with a money exchange service provider that charges a fixed transaction fee but offers a high or close to the mid-market rate. You should also find out if a fee is levied upon the receipt of money by the recipient. If that is indeed the case, you need to add that to your cost of the transfer.
Transferring money abroad may have become the easiest thing in the world in today’s times, but that does not mean that one throws caution to the winds and uses the services of the first international money transfer service that one comes across. The fact that there are so many competing service providers allows one to obtain rates that are fair and reasonable, instead of having to agree to whatever one is offered.