Money Transfer Abroad? 13 Tips You Must Consider
Tips before transferring money abroad
With globalization, money transfer from one country to another has risen drastically and will continue to rise be it by a company (big/small) or an individual. There are many ways to send money from one country to another. Few of them are listed below:
- Bank transfer or wire transfer
- Money transfer agents: MoneyGram, Western Union and others
- Checks (Cashier & personal checks)
- Bank drafts
- International money order
- E-mail money transfer
- Google wallet and so on…
But no matter what money transfer service you select and irrespective of the urgency, your ultimate objective is “How much will the receiver get after all the applicable fees/charges, by when and whether my money is secured”. i.e. if I transfer $1000 from India to US, how much do I need to pay extra?
Keeping following points in mind will help your money to reach the destination safely, on-time and with lowest possible charges:
- Security: Transferring money abroad through a third party service requires high level of trust as your money is with someone you don’t know. So when you’re making international money transfer via bank/transfer agents, make sure to check whether money is transferred securely or not on the internet. Best way to check this is whether the third party website is “https:” secured or not and level of security required i.e. whether authentication is multi-layered or not. Security is applicable for any type of transfer i.e. national/international.
- Exchange rate: You should be aware that exchange rate keeps on fluctuation every minute. Especially when large amount is to be transferred, you should check exchange rate at multiple places to get best deal. One of the most easiest way is google search. Just search “exchange rate” and on the top you’ll get option to check the exchange rate. It is as simple as that. Other solutions are websites like xe.com, x-rates.com, yahoo-finance currency converter and many others.
- Time taken: Imagine you are in US and want to send money to India urgently. In such cases choosing fastest money transfer service is the best solution. And this is especially recommended for individuals/companies having a need of transferring money on emergency basis. However with speed comes heavy transfer fees. Best way to save money in such a scenario is to keep list of charges by banks/currency transfer agents beforehand. Check out fastest options to transfer money.
- Transaction charge for sender & receiver: This charge has to be paid by the sender everytime. However few of the services also charge the receiver. So always verify this point before sending money and convey the same to the receiver. For a smaller amount, the charges can be negligible but for a large sum, you need to be extra careful and be aware of this type of charge.
- Hidden charges: Apart from the currency exchange rate and transaction charges, check out whether any hidden terms and conditions are there or not. For e.g. late charges: if you are sending money to someone but receiver fails to take money before the stipulated time then receiver will have to pay a small penalty.
- 24*7 customer support: Imagine while transferring money abroad during Indian time at night but your payment gets stuck and only option left would be contacting customer support. So opt for a service offering 24*7 customer support.
- Tracking status: Always choose a service which provides money transfer status online/app/E-mail/mobile number. This will help you track status everytime irrespective of the amount sent.
- Dealing with fraud: Hackers are very active and always spying on you. Remember this! However if someone still manages to fraudulently get hold of your money. What will you do? In such cases remember to check fraud reporting, complaint filing process and response time, fraud settlement history. Report fraud immediately.
- Payment method for sender: Some service providers accept only cash payments for transferring money. However be careful and try to avoid cash payments as much as possible. And if you do so, ask for a acknowledgement receipt.
- Documents required by a sender & receiver: Always choose a service requiring atleast some kind of document verification especially for a receiver. Normally documents requested are either passport, driving license, address proof etc. If a service provider does not need this when sending money for the first time, then your money might be at risk. So be careful!
- Device support: Check whether company’s website is easy to operate on desktop/laptop/smartphones. And whether they have apps for mobile or tablet so that transfer can be done and traced easily.
- Limit: Every service has minimum & maximum transfer limit – daily/weekly/monthly. Keep this in mind. Especially business should know this and choose a service with no cap on the amount.
- Cancellation charges: In situations where transfer which has already started needs to be cancelled, then heavy charges are levied. So you should be aware of this as well.
So considering above tips, you need to should use best service as per your requirement.
How to verify authenticity of the service provider?
If you are using any service then it’s your right to check each and every detail. Following are the ways to verify the genuineness:
- Website testimonials: Always go for a service having testimonials on their website. Although most of them would put only the positive ones. But still it’s a good way to judge someone’s authority.
- Referrals/Friends: Your friends/family members are the best source to gather feedback about a particular service. So consult them.
- Social Media: First and foremost important thing is to connect the company’s social media channels such as Facebook, Twitter, Google+ which are the widely used channels. Read what their connected users are talking and sharing about the service. Check for any unsatisfactory comment by the user. If a service provider does not have dedicated social media page then be careful before using their service.
- Online reviews: There are many sites displaying user’s feedback about a particular service. And you must check such sites as you will get both positive and negative comments about a particular service.
Have you ever done international transfer? If yes, then I would request you to add your experience and thoughts in the comments box below. This will help visitors of this blog.