Sending money abroad has actually become a whole lot easier and more straightforward than it used to be.
It used to be that the only way one could feasibly send any amount of money to somewhere on the other side of the world was to make use of a bank transfer, which, while it walked, could take upwards of a week to process and you needed a recipient bank for the money to land in.
The only other viable alternative was something like MoneyGram. That also worked exceptionally well, and the money would arrive relatively fast, but man alive, you would get destroyed by fees, making smaller amounts untenable.
Fortunately, these days, you have a plethora of options designed to make the task much easier, and that won’t cost you a fortune in fees.
In this post, we are looking at several things you can do to ensure that whatever option you opt for, your money will arrive within days and won’t cost you a fortune for the pleasure of doing so.
Compare Multiple Money Transfer Services
Your first step to money transfer bliss is to compare the various money transfer services. This is a vital step because different services can have very different pricing schemes.
For instance, when you send money to Brazil, one service might choose to charge you a small fee plus commission on top of any exchange rate, while another may eschew this commission rate in favor of a larger fee.
You will need to do the maths to make sure that you select the service that offers the most affordable option. In practice, this means looking at:
- Their fee structure: Different transfer services will use differing fee structures based on their business model. This is perfectly legitimate, and you need to factor in everything that surrounds it to make the best decision.
- How they handle intermediary charges: You will find that some transfer services are happy to charge a flat fee to cover certain intermediary costs, while others will simply state that you are responsible.
- Whether they work on the exchange rate of the day: Exchange rates can be a real killer when it comes to how much comes out of your account and eventually lands in the recipients. Most reputable services will charge you whatever the rate is at the time you initiate the transfer, but others will place a commission on top, taking another cut above their fee.
- How easy it is to use: If you need a master’s degree in computer science to send the equivalent of $100 to someone in another country, then the app isn’t worth using. It should be intuitive and have a decent customer support service, you can contact if things don’t go to plan.
Use Online Services For Convenience
A quick internet search will bring up a myriad of online options for you to consider.
Gone are the days when you had to be in physical cash to a booth in a post office or a similar scenario, and now you can connect these online platforms to your bank and send them away regardless of currency.
When selecting, look for the following:
- Transparency: You want any service handling your money to be open and upfront about how it charges and what it does with your money.
- Reviews: it should go without saying, but double-check the reviews to see what other users are saying.
- Delivery times: While not consistently accurate for various reasons that are often outside of their control, they should be able to provide a rough estimate of how long a transfer ought to take.
- Countries they operate in: Some services are unable to operate in specific nations for legal reasons.
- Payment options: The easiest way is to connect your bank account to the platform and send money directly from your account.
- Ease of use: if you’re going to make this a regular transfer, you don’t want to reenter all the details each time.
- Customer service: If things can go wrong, they probably will, so you’d best ensure that their customer service team is readily available.
Avoid Hidden Fees During Transfers
Hidden fees are the bane of many online services, and money transfers are no different.
By taking a proactive approach in searching through their terms and conditions and fee structure, you can avoid these hidden costs and make sure that the money you send lands as the correct amount, without any amount sliced off the top.
To be fair, because this industry is relatively cutthroat, it’s rare that you’ll discover any of them taking too much without warning you first, but it can happen, so you need to take precautions.
Cost In The Unavoidable Intermediary Fees
Intermediary fees are those charged by the banks in the middle of the transfers and possible SWIFT costs, if relevant. These can be pretty substantial but are not the fault of the transfer platform.
It’s best to send a small amount and see how much is deducted before you send over the total amount. That way, you can factor it in.
Double-Check Recipient Details
One way to ensure you have a bad day is to realize that you’ve sent the money to the wrong bank or entered one incorrect number.
To avoid this, you should always check, double-check, and then check once again to be totally sure.
Check Exchange Rates Before Making The Move
If you really want to maximize the amount the recipient receives or lower the amount you send, you can look at what the exchange rates are doing.
Some platforms even allow you to enter a rate that, when reached, the money will automatically get sent, saving you from having to check constantly.
By taking this small step, you can actually save quite a lot, and in some cases, it could make up the amount lost via intermediary fees.
See If There Are Any Bank Partnerships If Available
If your bank and the recipient’s bank have some partnership (or are part of the same organization), you might find it easier to send from bank to bank. Just head into your local branch and see what they have to say.
Sending money abroad is so much easier than in the past, but there are still steps you need to take to ensure it arrives as you intended.
By using these tips, you will make sure that you don’t lose out on fees and can send money sans the usual stress that comes from dealing with money.
