When choosing a money transfer service, it is important to weigh all the pros and cons. Some service providers are better for transferring small amounts, while others are cheaper with international versus national transfers.
You should use two or more money transfer services to maximize your benefits. Along with costs, money transfer services differ in delivery times, transaction limits, payment methods offered, accessibility, and currencies they work with.
We look at the process involved in sending money internationally and tips on making the best choice.
The Process For Sending Money Internationally
Although each money transfer service has its processes, most follow the same steps. Firstly, you must create an account or register with the service provider. Before the account is activated, you will be asked for proof of identity (passport, driver’s license, or any identity document approved by the US government).
Secondly, you must give the service provider all the necessary details about your recipient(s). You will need to provide their full names as they appear on their government-approved identity document and their banking information. Note how and where the recipient will obtain the money, e.g., cash from a walk-in center.
Thirdly, you need to determine how much money to transfer. Input this information, along with the currency the recipient must get paid in. You can use this calculator to work out the correct, latest values of the two currencies. This will inform you how much money will be sent in your currency and what the recipient will get.
Next, you will have to pay for the transfer and your transaction. This can be done by transferring directly from your bank account, which is the most cost-effective choice. Alternatively, you can use a debit or credit card to pay for the transfer. Again, credit card transfers are the most expensive.
And finally, you will be able to track your transactions. The service provider will inform you of the date and time of delivery. You will receive this information via the app of the money transfer service upon finalizing your transaction.
Tips For International Money Transfers
Money transfer service providers profit from adding a markup to the exchange rate. Thus, the exchange rate they quote you will be different from what you would get from sites that show the value of one currency to another. You can compare the two to determine what markup was used.
International money transfers involve two separate costs. One is the exchange rate markup, and the other is an upfront fee for using the service. When comparing service providers, you should consider one that has the best exchange rate and the lowest transaction fee. Bank transfers usually cost more than money transfer service providers.
It is a good idea to avoid using your credit card to make the payment. The institution that issued your credit card may charge you a cash advance fee and interest. Banks are typically slower with carrying out transfers than a money transfer service provider. Debit cards are the fastest and cost less.
The service provider must work with the currency you need your dollars to convert. For example, a Ria Money Transfer allows you to transact with over 165 currencies. With lower upfront fees and markups, you will get the best deal.
You have to compare service providers and banks to determine the best approach for you, which may differ from one transaction to the next.