There are different ways to send money internationally. Nowadays, bank transfers are not the only possible options and there are much cheaper and faster online alternatives for overseas payments. Read below to learn more about international transfers.
Online Money Transfers
As some banks can charge you as much as $25 for a basic international transaction, a whole new market of online money transfer services has emerged. For the fraction of this cost you can send money to virtually any country in the world and your recipient can receive the transaction directly to his or her bank account or even pick up the cash from the local facility. So what are the efficient ways to send money abroad and what to look for in these transfers?
Different ways to send money abroad
There are various companies to choose from and it’s hard to say if there is a single best way to send money internationally. You’ve probably come across PayPal when shopping online, there are also old-school remittance giants such as Western Union, which has been handling international transactions for hundred years now. There are also companies and platforms such as Remitly, WorldRemit, TransferWise, Skrill, Revolut just to mention a few.
There are platforms which specialize in currency exchange, others offer instant transfers. So you need to figure out which features are important to you; cost, speed, exchange rates or maybe safety before choosing the best transfer platform.
Remember to compare the different services and transfer prices - there are various online tools which can help you do that. The algorithm automatically compares the transfer costs of your transfer at all of the available providers and sorts you them in a list based on the features you mark.
Another thing to watch out for are exchange rates and “free transfers”, as they might not be what they seem. Many platforms claim to offer very cheap transfers and while the fees itself are quite low, they are hidden in the marked up exchange rates. For example, instead of exchanging your currency for 1 of another currency, you will receive only 0.8, which adds up to the total costs.
Also, try not to pay by the transfer with your credit card, as most platforms and banks charge you additionally for processing such payments, so it’s an easy way to avoid extra costs if you have different payment methods available.