International Money Transfer

There are multiple ways to make international money transfers. Listed below are the various options one can choose from when planning on sending money abroad: 

1. Offline Money Transfer/International Money Order 

This method of sending money abroad was very popular before the digitalisation of banking and money transfer. Through an international money order, you can send your money to accounts abroad safely. This is also an affordable option and is faster compared to other offline money transfer methods like bank drafts. 

1. Bank Drafts and Cashier's Checks 

Bank drafts and cashier's checks are another major form of international money transfer. Sending money using bank drafts and cashier’s checks is easy and affordable. Since it is made through banks, it is also quite safe and traceable. One disadvantage of this type of money transfer service is the extended duration it takes to complete a transfer. 

1. Online Money Transfer 

Online money transfer is one of the most hassle-free methods to send money abroad. You can make the transfer easily from your home if you have the needed details of the recipient’s account. The online method is most useful to those who want to do quick transactions, as it is the fastest method to send money. This method is also secure and available around the clock. The disadvantage, however, is the high exchange rates and other fees that make this a more expensive method. 

1. Online Wire Transfer 

Online wire transfer is a method of transferring money that is similar to online money transfer. Here, the transaction involves intermediary banks to facilitate the process. This allows the sender to transfer money with fewer overhead charges compared to the online transfer methods. One can use the wire transfer facility through banks, online platforms, and other authorised money exchangers. The ease of transfer and lower cost make this a great option for most. 

International Money Transfer Fees 

Many charges are levied on international money transfers. Knowledge of these fees is important while making money transfers. Here are the various factors influencing charges that you can expect on international money transfers: 

1. Exchange Rates 

The foreign exchange rate, or forex rate, refers to the value of one currency in relation to the other. The fluctuations in the international market can influence the cost of international money transfer significantly. The changes can be unpredictable, and they can have a huge impact on how much money the recipient receives. 

1. Transfer Speed 

Transfer speed, meaning the speed at which the transaction takes place, is another important aspect of international money transfer. The higher the speed of your transaction, the higher the fees charged to you. The speed entirely depends on the method used to transfer. Some methods offer comparatively speedy transactions, as we have seen above. For online methods, a duration of 48 to 75 hours is considered optimal, and for other slower transaction types, a few days. 

1. Overhead Charges 

Overhead charges refer to the additional transfer fees applied to the amount you send. This could include a variety of fees levied by banks, service providers, etc. Foreign conversion tax and service tax can also be included in overhead charges. The fees could either be a fixed amount or a small percentage of the amount you are transferring.  

Making International Money Transfers

The process of making international money transfers is quick and simple. Down below are the easy steps that you need to follow to make transfers on your own: 

Step 1: First, you need to have the relevant details of the recipient, including the name, address, phone number, and bank details. 

Step 2: Pick any one of the international money transfer methods according to your needs and convenience. 

Step 3: If you have chosen an online method, you can visit the official sites or apps of the bank/service provider and transfer digitally. If it is an offline method, you can visit your nearest bank branch, financial institutions, or companies that provide the service. 

Key Points to Remember While Making an International Money Transfer

Though the process of making money transactions has become easy and simple in this age, it is important to keep some things in mind while doing so. It is of great significance that people are aware of the numerous scams and fraudulent activities that might result in them losing money. 

1. Money transfer scams

The most common types of money transfer scams are phishing and impersonation. Phishing refers to when scammers send links to access your sensitive details. They can also impersonate legitimate financial institutions to gain your trust. It is to be known that you should not be making money transfers through unofficial channels. It is not advisable to send or receive money through suspicious links or sites. Moreover, no personal information should be shared carelessly. 

Another point to note is that all international money transfers cost money. There will be many kinds of service charges on your transfers, which are to be expected. If you receive any texts or links offering money transfer with zero fees, they should not be trusted.