Sending money overseas is pretty simple nowadays due to various online services and apps available today. But, the time and costs it takes for the funds to reach your recipient may vary depending upon the service you opt for. Here are a few options to consider if you are thinking of sending money internationally.
1) Use your bank’s wire transfer services
The majority of US banks will offer you money transfer services, but they may be expensive in comparison to other transfer methods.
Bank fees for such transactions are on the higher side, and you may have to incur an exchange rate markup.
Banks typically transfer money from one bank account to another one. Transfers through banks may take several days, but they are reliable and secure.
2) Send a money order
A money order is a secure way to send money or make payments to somebody, similar to how a check is used.
The main difference between a money order and a check is that the former represents guaranteed funds for the end recipient.
They are similar to a bank draft as in they are prepaid payments that are made on behalf of the payer.
However, a bank draft is insecure compared to money orders since a bank draft contains personal information such as the bank account, unlike money orders.
You can get more information on where to get a money order from providers such as Western Union, MoneyGram, and more.
3) Transfers by cash
You can use services provided by Western Union to send money overseas without needing the recipient to have his or her bank account.
You can send money either from your bank account or a Western Union counter. The recipient can collect the cash in their local currency.
While this is convenient, there are risks, however. Fraud while collecting cash can be an issue and there are risks of carrying large quantities of cash.
4) Personal Checks
You can write a check and send it to a recipient who lives overseas.
However, if you send a US dollar check overseas, there may be a delay to the recipient getting the money in his or her bank account.
First, the check needs to reach your recipient physically, then he or she will deposit it in his or her account. After that, the bank will verify the deposit and then credit the bank account of the recipient.
Furthermore, the recipient may have to pay fees for cashing the check and also cover the exchange rate to convert the fund into local currency.
5) Use online money transfer companies
Over the last decade, online money transfer companies such as Wise (earlier known as TransferWise), WorldRemit, OFX, and Xoom have grown in popularity.
The advantages that such companies offer over traditional bank wire transfers are speed, low costs, and superior customer service.
Someone who wants to transfer using an online money transfer service should compare companies to find the best deals they can get.
PayPal is an online payment service that lets you transfer money to businesses and people internationally.
You can link your bank account or credit card to your PayPal account to fund the transfer.
The advantages of using PayPal are that transferring money is relatively easy, and the transfer happens quickly. Fees for small amounts are on the lower end of the spectrum.
However, your recipient will need to have a PayPal account to receive the amount you transfer using your PayPal account.
Regardless of the method you use to transfer money overseas, it’s essential to keep receipts of all transactions so that you can take appropriate action in the event of some unforeseen circumstances.