What Are the Most Important Things to Consider When Sending Money Abroad?
Mоney trаnsfers are the most significant part of the company’s business processes. According to the official website, users of the sеrvice sеnd over $5 billion abroad evеry month.
There are several criteria you should look for if searching for the most comfortable ways of sending money abroad, no matter the country, even if you’d like to send money transfers to Vietnam or buy USD in Australia.
Three parties always take part in a remittance: the sender, the recipient and the prоvider – the оne who delivers money.
Discover how to pick the bеst finаncial provider in this article!
The exchange rate
Another important point is currency and currency exchange rates. In what currency do you send money, in which currency can your addressee receive it, and what is the exchange rate if these currencies differ?
With online remittances you save time for transactions: instead of two separate operations – currency exchange and transfer, you’ll need to process only one.
The transfer fee
Also take an interest in the size of the commission. All systems charge a fee for their services: usually the sender pays, but some systems share the commission: part is paid by the sender, and part is paid by the rеcipient. Whеn mаking a transfer, in order to avoid unpleasant surprises, specify the size of the commission.
Some systems charge their own fees for transferring money through a third-party service. Be mindful!
For example, according to the statements of the representatives of the company Wise, they do not earn on the conversion of currencies, applying the so-called mid-market exchange rate. This allegedly makes Wise money transfers more profitable than similar services. However, there are two types of commission charged on each shipment (fixed and variable), and in some cases it can be so significant that the cost of an online service is comparable to sending money abroad online through traditional offline systems such as Western Union.
One of the most important selection criteria is system coverage. In other words, you must be sure that the recipient will be able to cash out the transfer with convenience at the service point of the system. Some international money transfer systems are very widely represented and can be found almost everywhere, even in small towns. These include, for example, the well-known money transfer systems Western Union, Wise, and Best Finance.
Accessibility across different platforms
International money transfer systems, services which are offered by the banks of the republic are very widely represented, and they can be found almost everywhere, even in small towns.
In order to exchange currency over the Internet, many go to the websites of several banks and compare the exchange rates offered. This takes a lot of time, which can cost of sending money abroad more than you planned to save.
What you need to do is look up if a remittance system has an online calculator. Online currency calculator compares rates for you. It looks at the offers of different institutions and offers competitive options in real time.
Ease of setting up an account
Registration and entry occur by phone number and are confirmed by an SMS code.
For example, how easy is it to register within Wise? Select “send money abroad” and go to the next screen. First, you need to mark your country of residence and calculate the amount of the transfer. The next step is to select the recipient: you can send the message to yourself or to a third party. After that, you must provide the recipient’s data: account details, full name and address.
To simplify data entry, Wise came up with this move: the sender enters only the recipient’s e-mail, and the system sends an automatic email requesting bank details. Interestingly, when choosing the “transfer to yourself” service, the service again requires you to enter your data (full name, address).
In your personal account, you can see information on your transfers and manage them online: check the status, resend, cancel or make changes to the addressee’s data until the money is received.
Some systems don’t even give you the option of setting up the account. It can make your life easier, of course, and save you time, but a personal account is a guarantee of the safety of your transaction.
Moreover, with a personal account you can always view the history of your transaction, and it saves time for the future: there will be less personal information you’ll have to give to the system next time. It’s all because the information needed will be saved.
Sometimes you can register within the system using a company’s mobile application, which can be downloaded quickly and conveniently from Google Play or the App Store.