Everything one must know about international money transfer

If you have never sent money abroad, the whole process of it can be daunting. As an immigrant worker, you might have realized that sending money abroad can be expensive. The reason is that there are several factors involved, such as transfer fees and foreign exchange rates.

Before making an international money transfer online, Let us find out what it means, how it works, and the different ways to send money overseas.

So, what does international money transfer mean?

Many people confuse its meaning with outward remittances. Although they are similar in many ways, there are noticeable differences. For instance, an outward remittance for a person is when he or she sends money to their family members in another country only. An international money transfer online does not make such a distinction. It involves a transfer of money from a home bank account to an overseas account. You can do it through a bank or international money transfer service.

How does an international money transfer work?

An international money transfer online has three main components, such as the sender, the recipient, and the money transfer service provider. It starts with the sender initiating a money transfer request with the service provider. Depending on the service provider, you can send money abroad in person or online. You will need to provide the recipient’s details and pay the amount you wish to transfer.

After receiving the payment, the money transfer service provider will transfer the funds over to the recipient. The receiver can get the funds in their account or get cash. It can happen instantly, or it will take up to 4 working days.

Different ways to send money abroad

There are several ways you can choose to make an international money transfer online. You can send money online through the bank, online money transfer service, and cash transfer service.

●    Bank

You will have to visit your bank branch in person and submit a request to make an international money transfer. However, if you wish to opt for an inexpensive option, you can choose to send money through online banking. Banks usually charge more in transfer fees, but guarantee the safety of your hard-earned money.

Compared to online money transfer services, banks are a bit costlier. The average margin of banks is around 4% excluding overhead charges and fees. So, if your priority is the safety of your money and you can wait from 2 to 4 working days for your money to reach the recipient, you can send money through your bank. Many banks also maintain online portals for these forex services reducing the hassle of paperwork.

●    Online money transfer service

Another way to make an international money transfer online is through online money transfer services. Compared to banks, it can cost you less to send money abroad, and the process of sending money is transparent. The transfer fee is quite low if you are sending in large sums.

Sending money abroad through an online money transfer service is easy. All you need to do is create an online account and verify your profile. After that, you can easily make an online international money transfer from anywhere at any time. Online money transfer services are transparent with their fees.

●    Cash transfer service

If you wish to pay your transfer in cash, it would be wise to choose a cash transfer service in your area. It does not require you to have a bank account to send or receive money. You will need to visit one of the cash transfer services in your locality and request a transfer. You will need to fill a mandatory form and pay the transfer amount with transfer fees. After sending the money, the recipient can receive the cash within hours.

In short

International money transfer online can be an expensive experience if you do not pay attention to the kind of money transfer service provider you choose, the transfer fees, and the foreign exchange rates. So, make sure that you are well-informed before sending money abroad.