Five ways to send money internationally
Anyone currently working overseas or who has recently moved abroad to start work might be wondering about the best ways to send money online internationally. Not only is it often necessary to send money, but one might also feel the urge to receive money now and then.
While living in another country, it can be quite challenging to find the best money sending and receiving platforms. It’s important that platform be cheap and secure (fraud alert), whichever direction the cash is going. People often try different options but remain unsatisfied with the service for one or another.
This article gives an idea of the five best ways of transferring money abroad, plus giving a look at the best money transfer companies, Peer 2 Peer transfer companies, and money remitters. Readers will also learn how these currency handling companies work and when to consider each of the various options.
The range of options for money transfer companies
The first option for sending money internationally is using a money transfer company, such as TorFX and OFX. Since the exchange rates of these money transfer services and the fees are lower, the companies are considered a generally cheaper option for sending money internationally.
Compared to sending money via banks, the timescale for money transfer companies can be a bit longer, which is, however, not without reason. For instance, an account setup can take two days or 48 hours, depending on the money transfer company in question. It can also take 24 hours or longer to actually make the transfer. The effort is probably worth it in the end for the savings. Generally, it is recommended to use a money transfer company to send amounts of more than $1,000, the primary reason being that money transfer companies are much cheaper than transfers made through the bank.
Peer 2 Peer transfers and when to use them
The Peer 2 Peer money transfer companies are similar to the typical money transfer companies, the only difference being that one cannot physically transfer money from one country to another. These money transfer companies match the transfer amount with the one going in the opposite direction, while saving the requirement of the money to cross a country’s borders. Among the best options for Peer 2 Peer money transfer are CurrencyFair and TransferWise.
The underlying advantages of Peer 2 Peer money transfer are similar to transferring the amount via money transfer companies: they offer better transfer rates than banks, and their transfer fees are often lower as well.
Similar to money transfer companies, users will also need to set up an account. However, with Peer 2 Peer money transfer, one can expect faster money transfers. The Peer 2 Peer money transfer companies are good options if the transferred amount is about $10,000.
Smaller amounts and money remittance companies
When sending smaller amounts abroad to friends and family, money remittance companies are a great option for sending funds online. Money remitters are especially good when sending amounts of less than or up to one thousand dollars.
Money remittance are particularly useful for sending money to certain Asian countries, such as the Philippines and India. A couple of the best remittance options include World Remit and InstaRem.
Money remittance companies like these often offer the option of quick cash pickup, which means friends or family can pick up the sent cash within a few minutes after the amount is sent. Many of these companies have set transfer limits, which is why it is recommended to use this small money transfer only to send a small amount of money online.
For users who are sending money to be picked up as physical cash, the best option is to avail the services of money remittance companies.
How do money transfer companies work?
This information about some of the best options for sending money online internationally gives a better understanding of how the processes differ from one option to the next, especially in contrast to the option of using a bank. The differences lead to the question of how money transfer companies work.
To make use of the services of international money transfer companies, one needs to get registered, and therefore some sort of identification is necessary.
Depending on which money transfer company is used, ID and proof of current house address might also be needed. Subsequently, the user will be required to enter the details of the recipient(s), such as name and address.
Next, you are required to enter the bank details of the recipient. It is important to mention here that the required details may vary from one county to another, depending on which country/ region the recipient(s) are residing in.
Lastly, you will need to pay for the online transfer. Each money transfer company has a different method of handling online transfers, including bank transfers, credit cards, or BPay. Besides, the methods are a bit different and require some more work than what you would potentially expect from internet banking.
However, in the end, it all boils down to the question of whether it is worth it or not, and the obvious answer is yes: the amount of money that you can save by sending money online internationally while using money transfer companies is well worth the effort.
The higher the amount you intend to send marks the importance of the exchange rates. Therefore, it becomes crucial to explore your money transfer options if you send an amount higher than $1,000. Any of the suggested options are reliable for transfers up to $10,000.
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