This post is courtesy of contributor Kat Smith.
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From thrifty business owners to parents who need to send money to students traveling or studying abroad, people are able to send money overseas for cheaper rates and much more efficiently than what your average bank offers. The secret to this is simple. There are a wide variety of services that transfer money, and these have fees that are lower while they also offer more options and better rates of exchange than your typical bank.
You might be of the opinion that the convenience offered by your local bank will be the most viable solution. Yes, banks do offer wire transfers around the world that are secure. However, these services are not something that banks offer cheaply. Banks also tend to offer you exchange rates that are weaker coupled with fees that are higher and fewer options when it comes to sending and or receiving cash to and from other countries.
Unlike banks, some companies offer you international money transfer services with better rates of exchange and lower fees than what you will get from a bank. This is because they specialize in one thing and one thing only – transferring money. This gives you savings and the recipient of the money will receive more of it due to the better exchange rates.
Best Way to Send Money Abroad
The ideal way for you to send your money to someone in another country will depend on more than just which country you will be sending it to. There are a few other things to consider. You need to know how much money you will be sending. Different services will have different limits on how much you can send in a single transfer. You should also find out what the cost will be to send it. Each service will have different fees. If you will be sending money more than once, it would also be a good idea to see if there are discounts for sending money frequently. You also need to know how your recipient would like to receive the money and how quickly you need the money to reach the recipient. All of these things should factor in to whatever service you choose.
How Does It Work?
The exact process might differ from service to service, but some things will remain the same no matter which service you choose. Most of them will ask for the following.
· You might need to register for an account. This will include providing your name, contact information, and your birthday. Sometimes, the services might also ask to see your ID.
· Details for Your Recipient. You need to let them know who you will be sending the money to. Give them the name and contact information for the recipient. If the money that you are sending will be deposited, you will also need to provide the name of the bank, and the account number, along with the SWIFT code. (Society for Worldwide Interbank Financial Telecommunications)
· Details of the Transaction. You need to let the service know exactly how much money you will be sending and the currency in which it will be received.
· Review Everything. Most services will provide you will a summary of the transaction. This will show how much you will be sending, what the rate of exchange is, the fees that will be paid, and the complete amount that your recipient will receive. Make sure that all of this is correct before you proceed with the transaction.
· Pay for it. Each service will accept different forms of payment, but most of them tend to prefer that you pay in cash. Some of them might allow for the use of a debit or credit card though, as well as a mobile wallet, or a bank account.
· Track it. Once the transaction has been completed, you will receive a confirmation. This confirmation should include a tracking number or a receipt that can be used to track the progress of the transfer on the internet or at a branch of the transfer service. Some money transfer services also offer you the option of receiving a text or an email when your recipient has picked up the money and the transaction has been completed.