International money transfer means sending money overseas to a person or company. Such transactions are usually completed through a bank or money transfer services. International money transfer has evolved and became more common as more advanced technology is being developed.
Transferring money electronically from one place to another is known as a wire transfer. It is preferably used to send money from abroad. The receiver can collect the money as cash from the company which the sender used or it can be directly transferred to the bank account of the receiver.
Advantages Of Using Wire Transfers Are:
Wire transfers are common all over the world. Money can be sent or be received from any corner of the world. These are very available and attainable, and the receiver gets the money in their currency.
Money sent by wire transfer can be received immediately. The sender does not have to wait for a couple of days for the transaction to be complete.
Wire transfers are safe as they properly follow the laws of wire transfer thus it can be ensured that the receiver will safely get the money.
Factors affecting international money transfer (IMT) cost are:
It is the rate at which a currency can be exchanged for another country’s currency. For example, if you are sending £100 from the UK to the USA, then according to the exchange rate, your receiving party will receive $139.11.
This is the fee that is charged by the bank or money transfer services for sending your money. For example, if you send £100, and the company transfer fee is £5, then your total amount will be £105 from which the receiving party will receive the £100, and the additional £5 will be deducted as the company’s charge.
This transfer fee depends on a number of factors, including the country where the money is being sent, the amount of money being sent, and how fast the money is being sent.
This is the fee that is paid by the receiving party but not by the sending party. Some IMT services fee for both sending and receiving, which means they are profiting from both parties.
Steps to transfer money internationally are:
- Registering an account online by providing basic details such as name, address and phone number through the website of the company.
- Identity verification. To prevent fraud, most companies verify the user’s identity. Different companies have different types of verification requirements.
- Entering the transfer either online or through the phone. Most companies require money to be transferred within a fixed time to use the quoted exchange rate. If the money is being transferred to an individual, then the receiver’s contact details will be required.
- Pay money from the bank account to the money transferring service.
- Track transactions transaction either online or via email. The transaction is complete once the-money arrives at the account of the receiver.
The cheapest way of transferring money internationally is by using a money transfer service. They provide better exchange rates and less transfer fees than bank or PayPal, which means that the receiver will receive more money. The cheapest way of money transfer depends on the sender’s needs.
Reasons to use money transfer services are:
- Money transfer services offer a good exchange rate compared to banks and other services. To make the most of your cash, whether it is a small or large amount, it will be wise to use a money transfer service.
- Money transfer services offer a convenient way of transferring money. These companies usually offer an online account and an app, through which customers can make transactions from the comfort of their home.
- High rated money transfer services provide remarkable customer service that can help to explain the fluctuations of the currency market. By using a currency forward contract, customers can fix an exchange rate with the company for future transactions.
- Some services will inform you if an exchange rate reaches the amount you are looking for and you can then make the transfer and get your desired exchange rate.
Such transfer services offer the best value for your money, are easy to use and you do not have to worry about future transactions.
Some easy ways of saving money on online money transfers are mentioned below:
- By comparing different money transfer services. Comparing helps to find the best possible exchange rates, low transfer fees and reliable service.
- One large transfer is more cost-effective than several small transfers as every time a transfer takes place, a transfer fee adds up.
- Transfer fees depend on the amount of money being transferred so a sender should be completely aware of the transfer limits.
- Sending a large amount of money through companies that deal with small amounts of money should be avoided.
- The total cost of the transfer should be properly checked. There might be a low transfer fee, but the exchange rate might be higher. Paying a moderate transfer fee may be worth it if the offered exchange rate is good. Comparison should be done based on the final amount that the receiver will receive.
- Unless the transfer has to be done urgently, do not pay for any fee to speed up the transfer process.
- Sending money through online services can help you save a lot of time, and it is safe and easy.
- Ask the services to inform about any better alternatives or suggest better plans.
- Be well known of the refund policy in case the receiver is unable to receive the money.
- Double-check with the services to know whether the receiving party will have to pay a receiving fee or not.