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International Money Transfers: What You Should Know Before Sending Money

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Opinions

International Money Transfers: What You Should Know Before Sending Money

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People have different reasons for transferring money abroad. Some do it for business purposes, like when you have employees from different parts of the world through outsourcing, and some do it for personal reasons, like money remittance or sending money to family in their home country.

As a foreigner, you may also have a one-time transaction like buying a house or a car in a foreign country.

But whatever reasons you may have for doing international money transfers, it is worth it to read up on the essential things you should know before you send your hard-earned money.

Here are some tips you should keep in mind before you send money internationally:

1.    Know the law.

Sending money abroad is not a crime, but it can become one. Criminals have used international money transfers in the past to launder their money, so law enforcement has implemented laws to prevent this from ever happening. Money laundering is a serious crime, and it carries a heavy punishment.

Simple miscommunication or failure to follow the pertaining laws regarding international money transfers can alert law enforcement, and they can arrest you for it.

To prevent this from happening, read up and know the laws in the country where you’re from.

For example, some countries often have a cap on the amount you can send to a foreign country without filing a report on it or including it in your tax forms. This applies for one-time transactions and recurring transactions.

2.    Know your options.

Your main options for transferring money abroad are your bank or choosing between different money transfer service providers available.

Although banks can provide you with a safe and secure way for transferring your funds internationally, it often takes a long time before your recipient receives the money.

The receiving bank, where your recipient will withdraw the funds, also charges a fee and deducts it from the payment you sent. This results in a lesser amount received by your loved one or employee.

If you are going to choose an international money transfer service provider, you will be surprised at the massive number of choices available. To find the best one, the essential thing to do is research. Read on about international money transfer reviews and get all the information that you need.

If you have already made a choice which money transfer provider you want to use, you can watch this video so you can do the transaction without any hassle or interruptions.

3.    Know the exchange rates.

Because you are dealing with international money transfers, knowing the exchange rate is an important aspect you should be familiar with. Different international money transfer service providers often offer different exchange rates.

A lot of these providers offer a meager exchange rate as this is where they get their profit from.

So before making a choice, make sure that you are aware of the exchange rate and how they compare with the exchange rate from Google, XE or other similar reliable websites. The higher the exchange rate they offer, the better for you.

4.    Know the service charge.

A lot of money transfer service providers claim to have the lowest service charge to attract more customers. The same can be said for banks. However, do not be fooled by that.

Banks and other service providers are not required by law to post all the processes that happen when you transact with them, but when you are asking the right questions, you can get to the truth.

The best way to find out how much you are paying for each transaction is by finding out their exchange rate. If they offer no service fees but have a low exchange rate, then that is not the best option to choose.

Paying for a fixed service charge rate is better as long as their exchange rate for every dollar is high or close to the mid-market rate.

You should also ask if the amount you sent multiplied by their exchange rate is the same amount the recipient will receive on their end. If they have to deduct a separate fee upon receiving the money, then that is a fee you can add under service charge.

5.    Know how secure and reputable the provider is.

Banks are definitely secure, but as mentioned above, they are not the front-runners for your choice based on other standards.

As for money transfer and currency specialists, their website security is always something you should be keen about. Again, researching is essential. Asking friends for referrals can also be an option when choosing.

And since banking and international money transfer transactions are done online these days, make sure that the website where you are entering your bank details is safe. Always look for the green lock button on the address bar or make sure that the website starts with HTTPS.

The more straightforward the process and fewer details you have to enter, all the better for you.

6.    Know the speed of transfer.

Just because it is an international transfer does not mean it has to take a long time, too. The speed at which your loved ones or employees can receive the money you have sent is just as important. You never know when an emergency might occur, and funds may be needed straight away, so a speedy transfer might be necessary.

Some service providers also offer a higher rate for a faster transfer while others have a high service fee for their speedy transfer.

International money transfers are more common now since globalization has touched every aspect of our lives, and working together with people who are on a different continent and time zones is now a part of our daily lives.

Loved ones working abroad also use this service all the time for money remittance or to send money to their families at home.

In the end, it is your choice which service provider you choose, but it is crucial that you learn all the things you need to need to know before making an informed decision.

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International Money Transfers: What You Should Know Before Sending Money

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