International Money Transfer
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A big challenge faced by working travelers and expats is sending money internationally. Many choices exist for international money transfer and finding a fast, secure and inexpensive money transfer service can save you a lot of money and hassle. The most common options available are- I. If you have a bank account in the country where you want to receive money- Inter-Bank Transfers - Mot suitable for amounts less than $1000 or smaller once-off transfers Transferring money from one bank to another is a fairly straight forward process and can be done online or in the branch.
The downside of inter-bank transfers is that fees and exchange rates are usually relatively high compared to International Money Transfer Companies. The big difference between transferring money from one bank to another and money transfer companies is the exchange rates and fees, which can differ significantly. Most banks worldwide will provide facilities along with your bank account so you can transfer money online to an overseas bank account. You will need to have the SWIFT number and/or the IBAN for the receiving bank. You will also need the account details of the receiving account, the address of the receiving bank, the account name and often the receiving bank's address. The amount you can transfer for each transaction is often limited, however the limit varies widely between sending banks. Fees are generally around AU$20, CA$20, €15, GB£15, US$15 for their standard services and about double that for priority services. Note that receiving banks sometimes also charge a fee — so be sure to check to avoid surprises. Exchange Rates for inter-bank transfers are generally not as good as dedicated International Money Transfer Companies.
Pros Cons: The countries you can send money between is generally not limited Costly compared to dedicated online International Money Transfer Companies No need for an internet connection if you don’t mind going to the bank’s branch Most banks limit the amount you can transfer per online transaction Online money transfer services are also possible if you have internet banking access For most banks you cannot easily check the currency exchange rates online Safe money transfer Receiving banks will often charge a fee on top of the sending bank’s fee International Money Transfer Companies- Most suitable for amounts greater than $1000 or regular transfers International Money Transfer Companies now save many travelers, expats and exporters many millions of dollars annually.
Few companies have pioneered these dedicated online money transfer services which have been warmly welcomed by those looking for a better option to banks or western union money transfers. How does it work- To move your money overseas, first you move the amount you want to send from your bank account to the bank account of the international money transfer company. This first transfer is free since they are in the same country as you. The international money transfer company then sends your money overseas via its own international bank account network. Importantly, when the money arrives overseas you can choose to wait for the right exchange rate (real time) or you can have it exchanged automatically upon arrival. A set fee applies to the transaction, as set out below. Your money is then deposited into your specified destination account.
These companies are companies dedicated to international money transfer and they can therefore offer exchange rates and transaction fees that usually beat the banks. 24hr service and offices in all the countries they transfer money to ensure you can always speak with or contact a currency trader for assistance. To set up your money transfer account these companies usually require identification in the form of a copy of a passport/driver’s license and a signed bank statement (of the bank where the funds are coming from) showing your current residential address.
Fees per transaction are relatively lower than banks. Pros Cons Competitive exchange rates and fees that are designed to beat the banks You must have a bank account in the country from which you are transferring and which you are receiving Some of the international money transfer companies allow you to pay off credit cards back home. You can also send money internationally to yourself or to friends and family – all you need are the recipient’s bank account details You must have access to a secure internet connection Some online money transfer service companies operate between a limited number of countries – so be sure to check before you sign up You must have access to either online banking or telephone banking through your current bank Ability to select the exchange rate on a second by second basis Payments using cheques or credit cards are not accepted – electronic funds transfer your bank account only Safe money transfer Eligible countries are limited- be sure your home country is covered before signing up with a money transfer company.
In case you do not have a bank account in the country where you want to receive money- Western Union and Travelex- Most suitable for amounts less than $1000 Pros Cons The countries you can send money between is generally not limited Expensive compares to dedicated online International Money Transfer companies and even banks If you do not have access to a secure internet connection or do not use online banking, you may have to do an in person transfer The recipient will likely have to pick up the money in cash and in- person Safe money transfer You have a actually find a Western Union or Travelex outlet, rather than simply logging on to your computer Credit Card Money Transfer - Most suitable for amounts less than $1000. If you are in need of money from overseas relatives or friends also consider a credit card money transfer. You will still have to pay the banks exchange rates at the time of purchase but in terms of ease and security a credit card money transfer can be an excellent way to go. If you want to save a significant percentage on the exchange rate you will better off using an international money transfer company, then using a credit card in the currency of the country you are using it.