There are many different ways of sending money overseas and most of them are quite expensive. Learn the cheap way and also save money in the process.
There are various ways of transferring money internationally, however, some have higher transfer fees than others. Most of the cheaper ones usually end up being scams but some trusted companies operate and provide services in transferring money, not only at a low-cost but also with security.
With the ongoing pandemic, people are all on a tight budget and are looking for ways to save money in various ways. Many have started earning money online to make ends meet. However, when transferring money overseas, it can be quite expensive, but it need not be if you dig in a little deeper and do your homework.
5 Economical Ways to Transfer Money Oversees
1. Online Money Transfer Service Providers
You do not need to go to the bank to use their services rather just sit home and pay using your bank account or credit or debit cards. The transfer fee is affordable and secure enough for a successful transaction. Providers such as XE, Remitly, TransferWise, etc. allow competitive exchange rates that you can choose from with a low-cost fee. Select the better option and before transferring confirm the total cost with your chosen provider.
2. Cash Pickups Service Providers
The best and the well-known cash pickup providers are Western Union and MoneyGram. Both of them provide online and in-person money transfers to around 300,000 – 500,000 branches located in 200 countries. The key advantage of using these providers is that you can send and access instant cash in hand instead of it being transferred to your bank account. However, this method is a bit more costly than a digital transfer service. You can visit https://usa-banks.info/moneygram/ for more information.
3. PayPal Money Transfer
They transfer money to around 100 countries and the best part is that they support multiple currencies. Their exchange rates are better than those of the banks but not as good as the money transfer organizations. Their transaction fee is calculated according to a percentage of the amount that you are sending i.e. it’s a good idea to transfer little amounts at a time.
4. Cashier’s Checks & Money Orders
If you are looking for a safe and secure way of transferring money, using a cashier's check and money orders can be the best way. If you’re planning on transferring an amount exceeding $1000, then the cashier's check can be chosen. You can purchase this from your bank but the fee may be costly. However, you can purchase money orders from grocery or convenience stores, postal services, or gas stations. They usually cost less than the cashier’s check but the disadvantage is the limit imposed on transferring money up to $1000. Another con is that both of these processes take time to reach the recipient.
Despite the cons, the advantage is you can be confident that your payment is not getting lost or stolen.
5. Bank Transfer Services
This is the safest way to wire your money to the recipient’s bank. Keep in mind that for this to work, banks need to have links with other banks and banking systems all over the world.
The disadvantage of using banks to transfer money is the low exchange rates and high transfer fees. Also, it provides fewer options to send and receive money when compared to other money transfer companies.
How does Digital International Money Transfer Services work?
Although the process is different and varies from company to company, here are some basics that may be necessary for your transfer to be successful:
- Create an account: You’ll be asked to fill in your details such as Name, contact addresses, date of birth, and a valid ID as proof. They may also ask you to fill in your bank and/or card details too. It’s usually free when registering with the company.
- Recipients details: Next, you’ll be asked to fill in details of the person who will be receiving the money. Name, contact information and if you’re depositing the money in a bank, the account number, name of the bank, and a SWIFT code are required.
- Provide transaction details: Next you’ll be asked to fill in the amount of money you want to transfer and the type of currency in which it will be received.
- Review transaction details: Always review your inputs twice and also check the summary of the transaction. The amount of money you’ll be sending, the exchange rate applied, how much the recipient will receive in a different currency, and any fees involved, all this information is shown on the summary page for you to review and confirm the transaction.
- Choose payment method: Next step is to choose how you’ll pay for the transfer. It could be either with debit or credit card, bank account, or mobile wallet. Select your method and pay to initiate the transfer.
- Track your transaction: You’ll probably receive a receipt with a tracking number which will allow you to track your money online or through an agent location. Later, you’ll be notified when the money reaches the recipient and the transaction will be completed.
How to save money when transferring?
There are various factors you can research when looking to save money on your transfer.
- Compare exchange rates – compare your offered rates with your currency’s mid-market rate and choose the provider that gives you the closest one.
- Send more money – usually, many providers give discounts or waive all of the transfer fees if the money sent is a large amount.
- Grab special offers – look around for special discounts or offers such as free of charge for the first transaction, etc.
- Beware of hidden costs – make sure you understand the total cost that is involved in the transaction, including any charges the recipients may have to pay for withdrawing the money.
- Same currency transfers – it is usually cheaper to send the same currency money where he/she can later exchange it to their currency and the fees for encashing will be lower than usual.
Many people feel safe to transfer money using banks even if the cost is high. However, avoiding using the banks for a money transfer can save you both time and cash because of their weak exchange rates and slow delivery process. Opt for cash pickup transfer services to send and receive money in a fast and cheap way.
No matter what method you choose, always remember to research hidden fees and costs that the recipients have to pay, before making the transaction.