If you ever need to send money to someone you know living or vacationing abroad, you’ll need to use a money transfer service to convert and send the funds.
That being said, not all money transfer services are equal, and some can be faster or cheaper than others, among other things.
Here are the top factors that you will need to consider when choosing a money transfer service for sending money to someone abroad:
How Can You Deposit Money?
First of all, how does the money transfer service allow you to deposit money to convert and send? Obviously you’ll want it to have a method that’s convenient for you, whether it be by credit or debit card, cash deposit, or a direct transfer from your bank account.
Just remember that transferring money from your bank will almost always be slower than depositing via credit or debit card.
How Will Your Recipient Be Receiving The Money?
Will your recipient be receiving the money by picking up cash at a pre-determined location, withdrawing from an ATM, or will the money be deposited directly into their bank account?
In addition, depending on the policies of the money transfer service, your recipient may also have to pay a fee to receive the money. If so, you’ll want to find out what the fee is and notify your recipient so they’re all squared away.
What Are The Costs To Send The Money?
Besides the costs of your recipient receiving the money, what are the costs of you sending the money in the first place?
Generally speaking, with any money transfer service you’ll need to pay two costs: a fee (which should usually be 1-5% of the amount you’re transferring), and then a margin of the exchange rate. Since the exchange rate can vary significantly, you’ll always want to make sure that you get a guaranteed rate when you ask for a quote from the service.
Take note that banks will almost always charge a large flat fee, which can be anywhere from $40 to $80, to send money internationally. Online remittance services, however, will usually only charge a much cheaper small percentage.
What Are The Transferring Times?
Last but not least, you’ll also what to find out what the expected time to transfer the funds to your recipient is.
Again, this can vary significantly depending on the service that you use. Some services such as banks may take several business days to complete the transfer, while certain remittance services may be able to send the funds in just a matter of minutes.
Choosing A Money Transfer Service
All in all, these are the top factors that you will want to consider when choosing a money transfer service to send money to someone overseas. If you learn anything from this article, it’s that you should carefully do your research and not just use the first transfer service that you come across.