Jason Kumpf Best Way to Send Money Internationally and Save
By Jason Kumpf
Sending or transferring money abroad through your bank can work out to be quite expensive due to their currency conversions and exchange rates, bank transfer fees and other costs not to mention their large number of standardized policies and procedures, safety documentation and rules to adhere to.
Nowadays there are much easier, convenient and safe ways to transfer money overseas without having to rely on just your banks. Depending on whether you want to transfer money cheaply, quickly or over a large network there are various service providers who will do the job for you in the safest and effective way possible. Depending on the amount you want to transfer or whether you want to do it online or offline there are service providers to fulfill those specific needs too.
E-transfers or electronic transfers
E-transfers help you to transfer your money internationally online or electronically either through your bank account without having to physically visit the bank or with the use of money transfer apps. If you want to transfer money electronically, you need to register with your bank to avail their online banking services by creating a username and password for yourself.
Once you do this you can easily transfer any amount of money to anyone by just adding them as a transferee with their complete bank details like Bank Name, Account number, IFSC Code, and so on. You’ll need an IBAN or SWIFT code or number to transfer money to international accounts.
TransferWise and Xoom have been rated as the best financial service providers to use if you want the perfect online experience with your money transfers. Through the TransferWise website or mobile app, you can transfer up to 49,999 dollars from the United States to a whopping 54 countries all across the world in the quickest, easiest and safest manner possible.
It’s even easier to sign into the TransferWise website or mobile app if you have a Google, Facebook or any other email/social media account. No more standing in long and annoying queues at your bank branch to transfer money! However, we shall discuss more in detail about the best apps for online or e-transfers for international money transfer.
Let’s take a look at what are the best ways to transfer or send money internationally.
Best online apps and websites to transfer money safely, cheaply and fast
TransferWise & its advantages
This company is based out of the UK and uses mid-market currency exchange rates to help you transfer money at the cheapest possible rates on that day. Mid-market rates are the same rates that huge banks use amongst each other to transfer money and TransferWise uses those same rates for their customers. It avoids the extra charge that banks and other financial institutions levy on international money transfers that help them make their profit off customers. TransferWise charges a minimal fee for their services and the transfer happens in a few business days.
Western Union & its advantages
This is the largest company for money transfer in the world and gives access to all of its customers via personal correspondence, telephone, its website and mobile app. Western Union also offers its customers a variety of payment options like debit/credit card, cash, and internet banking and a variety of money transfer options.
Depending on the transfer method and payment option that you choose, the exchange rates and extra charges levied will vary accordingly. If you opt for payment through your bank account, it will be the cheapest and fastest option for money transfer.
Western Union also specializes in transferring money over a large network of public agents in different locations. You can either transfer money directly into a bank account in another location or send cash to that location and WU will have one of its own agents pick it up for you and deliver it to its end destination. You can transfer money to over 500,00 different locations situated in urban as well as rural and remote areas. WU extends these services to over 200 countries all around the world.
Xoom & its advantages
Xoom will help get your money from point A to point B in no time and minus any extra fees or charges that any other bank or service provider would have levied for the same kind of super-fast delivery. Xoom is owned by PayPal and makes sure your money reaches the desired destination no matter whether it’s debited from your bank account, debit or credit card.
You will have to pay a minimal fee of just 5 dollars however transfer fees can differ depending on the destination country. Due to a difference in time zones and working hours of banks in different countries your money might take slightly longer than normally expected with Xoom but you won’t get your cash transferred at faster speeds and cheap rates like the way Xoom does it.
PayPal & its advantages
PayPal is another app for transferring money overseas in the cheapest and most economical way possible. It’s even easier when one person with a PayPal accounts is transferring money to someone who is also registered with PayPal. Sending money from one PayPal account to another PayPal account is totally free, however, once the payment is cashed, a minimal fee is charged to the customer.
A fee calculator is used to calculate the fee on each amount of money transferred and a fee is chargeable only if the amount transferred crosses 3000 US dollars. The larger the amount transferred the lower are the PayPal transfer fees charged. Transfers that are made in international currencies are subject to daily changes or fluctuations in exchange rates.
Other/physical modes of sending money internationally
With all these online modes and apps for money transfer, it is easy to forget the easiest and most practical way to transfer money – the old fashioned way – and that is withdrawing cash from one bank and depositing it in another bank, completely free of cost! Don’t ever send cash through post or mail though as chances of it getting lost are high.
Money Gram and Western Union are also the best service providers to use if you want to transfer money by way of cash only. Both companies have thousands of agents located in all of the stated locations and territories in the United States and the rest of the world because of the size of the networks they cover. Again, money can be delivered either directly to a bank account or can be picked up personally and hand delivered to the desired person.
Transferring money via personal cheques is another old fashioned but safe way to send money. You can directly deposit a cheque into someone’s bank account, mail it to them or hand deliver it to them, whichever you find most convenient. Some banks offer free services for handling and delivering cheques which cut down on your money transfer fees.
By Jason Kumpf
International Business Expert