How To Make An International Money Transfer
You must use an international money transfer if you want to send money to a friend or relative who lives abroad. Although wire transfers are a well-known means for doing this, consumers have other options as well.
You should think about a number of things while examining your alternatives for sending money abroad, including costs, maximum transfer limits, and the processing time. Here are some of the most popular methods for sending money abroad along with the actions involved.
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Best Ways To Send Money Internationally
International Wire Transfer
Money can be sent overseas through wire transfers often. Typically, you can send money overseas through a wire transfer through your bank or a third-party provider like Western Union.
Usually, you can arrange a wire transfer online or in a bank location. You’ll need the recipient’s name, routing number, account number, and account information to do this; some providers might also ask for the recipient’s address.
The money may take one to two business days to arrive if you start the wire transfer on a business day before the institution’s specified cutoff time, but it may take longer. The transfer will not be handled throughout the course of weekends or bank holidays because it is handled by the banking institution. Although wire transfers are one of the quicker methods for sending money abroad, they have higher fees. Analysis by Bankrate indicates that outgoing international wire transfer costs typically cost $44.
Wise
Wise, formerly TransferWise, provides a special way to send money abroad without the exorbitant costs of a wire transfer.
The service effectively functions as a global online account that links you to other accounts. For a little cost, you can send money via Wise by making a bank transfer to the nearby Wise account. Instead of sending this money straight to the recipient nation, Wise takes the appropriate amount out of its account in the foreign nation you want to transfer money to.
Let’s take the example of shipping $1,000 from the US to France. You would first enter the recipient’s account details as well as your own account information on the website. Wise may start an ACH transfer for you by connecting your bank account for a $2 cost plus a $5.30 service fee, totaling just $7.30 in fees (this may vary by currency). The receiver will get the converted amount in euros from the local account in France after the funds are transferred to the Wise account there.
Depending on the country you are sending to, the transfer pace varies, but Wise transactions typically take little more than two business days. Although it will cost you more, Wise also enables you to transfer money from a debit or credit card.
Xoom
PayPal’s Xoom international money transfer service works similarly to other peer-to-peer (P2P) payment apps. To send money with Xoom, you’ll need a PayPal account; the recipient doesn’t.
Xoom accepts payments from bank accounts, debit cards, credit cards, and PayPal balances. However, debit and credit card transfers frequently incur additional costs. Otherwise, you will normally be charged a fixed conversion cost that is based on the recipient’s currency and an international fee of 5%.
The option to transfer money for cash collection is also available to users. This implies that you can choose to have the money you transfer to another PayPal user available in cash at a nearby, practical place, such a bank or retailer.
The maximum amount of money you can send with Xoom rises in proportion to the amount of personal information you divulge. The daily base limit is $2,999. When you present a passport or Social Security number, the amount rises to $10,000. When you present a driver’s licence or passport, a bank statement or pay stub, and respond to security questions, the amount rises to $50,000.
Xoom’s money transfers are typically quite quick, showing up in the recipient’s PayPal or bank account in a matter of minutes. If you send money to someone’s PayPal account, they might also have to transfer it one to three days later into their own bank account. For an additional cost, instant transfers are available.
MoneyGram
Online or offline international transfers are also possible with MoneyGram. Customers can send money online using a debit card, credit card, or bank account. When transferring money by going in person to a MoneyGram agent, cash is typically the only payment method accepted.
Sendbot is a special tool that MoneyGram also offers through Facebook. Users of Facebook can enable Sendbot by looking for it there or in the messenger application. Sendbot will walk you through conducting a money transfer when you provide your account details.
Transfers made with MoneyGram are reasonably priced. The cost for using a debit card is normally $2 or less. There is a larger fee for its cash pickup service, which enables receivers to pick up the transferred amount in cash at a nearby location, and the fee may be greater for alternative payment methods.
The time it takes for the money to get in the recipient’s bank account varies depending on the nation. It is accessible in the majority of nations by the following business day.
Comparing International Money Transfer Services
| Method | Fees | Speed | Maximum transfer amount |
|---|---|---|---|
| Wire transfer | $44 for outgoing on average | 24 hours or next business day | Varies by bank from $1,000 to unlimited |
| Wise | $7.50 (may vary by currency) | 1-2 business days | No limit in most cases |
| Xoom | 5 percent + fixed currency fee | Within minutes | Up to $50,000 per day |
| MoneyGram | Usually $1.99 with a debit card (varies by country) | Next business day | $15,000 |
How To Send Money Internationally
- Determine what transfer service to use
Wire transfers, Wise, Xoom, and MoneyGram are four of the most widely used payment options. They differ in terms of transfer speed, fees, available countries, and accepted payment methods, among other things.
Consider the following when deciding between these several transfer methods:
How soon do you need the money to be sent? Since they offer quicker delivery times, wire transfer or Xoom can be preferable choices if the transfer is urgent.
Is the transfer amount significant? There are other providers that have stricter limitations on how much money you can send abroad. For instance, your bank could only permit overseas wire payments of up to $1,000.
Which nation are you delivering to? Not all countries offer all transfer services. For instance, Western Union, a wire transfer provider, is accessible in practically all countries, whereas MoneyGram only permits online international transactions to 34 countries.
What method of payment do you employ? Depending on the payment option you choose, different fees can be assessed. For instance, there is a greater fee when transferring with a debit card through Xoom than there is when using MoneyGram to make a purchase.
Additionally, not all service categories, including Wise, accept cash.
Does the recipient require monetary payments? If the money needs to be picked up in cash abroad, you’ll need to utilise a provider like MoneyGram or Xoom, which offers this feature.
- Enter the sender and recipient details
You must first submit some essential information to the transfer service before starting the overseas transfer. You must typically give the recipient’s name, account number, and routing number in order to use most services. You’ll also have to enter your own banking information to connect your bank account with services offered by banks other than your own.
To transfer greater amounts, you might need to provide more identification documents to some services, such Xoom.
- Select The Currency And Sending Amount.
Make sure you are sending to the proper nation and that the currency conversion is accurate. Depending on the nation you are transferring money to, conversion costs may change.
Frequently, the costs associated with the service and conversion are deducted from the total amount you send. Send enough money to ensure that, after deducting costs, the amount that ultimately appears in the recipient’s account is accurate.
- Finish And Monitor Your Transaction.
It may take a few minutes to several days for the desired transfer amount to show up in the recipient’s account after you send it. Make sure the recipient is aware of the time and location of the cash pickup if you are sending them money for a cash pickup.
Follow the progress of the transfer in your account history, and keep an eye out for any additional costs that might have been imposed in case they need to be contested.
Conclusion
With the many methods offered today, sending money abroad is a simple process. Remember that even while your bank might be your first choice for sending money overseas by wire transfer, doing so is typically more expensive. Numerous nonbank providers provide international money transfers at significantly lower costs and with respectable delivery times.
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