What is the Best Way to Transfer Money Internationally?
For corporate bank accounts holders, sending international payments can be a daily task and to keep things running smoothly, it’s important to find the right method. With digital transfer services available, you can send and receive money in just a few minutes. However each service differs in terms of fees, exchange rates, and time needed to complete each transaction. Before choosing a method, make sure to find the best deal and service to cater to your business’ needs.
You need to take into account how often your business conducts international transfers and the amount of each transfer. For example, sending larger transfers can incur much higher fees so you want to make sure the service you choose is the most cost effective.
What are some of the main things to understand before choosing how to send money overseas?
- Exchange rate
A major thing to consider when choosing the best way to send money overseas is the exchange rate. Different banks and transfer services may offer differing rates, and some can be pretty high. Look out for the margin on the exchange rate offered, as many banks can charge a lot. Coupled with the typical transfer fee, you can end up spending a significant amount in extra fees. One of the fairest exchange rates is the mid-market rate, which is basically the point between supply and demand of any given currency.
All financial services are held to rules and regulations that they need to comply with in order to operate. When deciding which provider to use, make sure that they are in full compliance with the local and global regulations. They need to have protocols in place to avoid money laundering and fraudulent activities.
Most transfer services have an international transfer fee for sending money overseas. Make sure to look out for hidden fees and understand anything you might be charged before you settle on a provider. Each system has its own fee structure so it’s very important to compare your options to find the one that is best for your business.
4. International Money Transfer Apps – for Android and iOS
You will find an international money transfer app useful in a range of situations. You can use the app if you need to send a family member a monetary gift; split a restaurant bill with a friend or pay your rent.
How can you send international money transfers? (Android and iOS)
There are several ways to transfer money internationally such as your bank or wire transfers. There are also many online transfer providers that are now challenging these more traditional methods. Banks are notorious for overcharging; however some prefer the safety of one’s own banks when sending large amounts of money.
Banks are the most traditional method for transferring money internationally. However they are known to be the least cost effective option. With high fees and exchange rates, many businesses choose to send money overseas via alternative methods.
Since banks have to dedicate resources to the huge range of services they offer, they don’t always focus on improving their international transfer services. These days there are other options that specialize in money transfers that have much better rates and online tools.
When sending transfers between European banks, your transfer might qualify for SEPA (Single Euro Payments Area). SEPA can make your transfer between European counties cost as much as a local transfer and avoid costly international fees.
- Wire transfers
Wire transfers have been a popular way to send money abroad quickly. Wire transfer companies like Western Union can be found all over the world, and don’t require users to have a bank account. This can be very convenient for those that need the transfer to be conducted as fast as possible, especially if a bank account is lacking or the recipient is in a remote location.
The main disadvantage is that the rates are usually very high. While wire transfers can be useful for those that need the money to be received immediately, it might not be the best options for regular international transfers.
- Online payment providers
Online payment providers like PayPal and Valyuz are another way to send money overseas. This option can be very efficient when both sender and recipient have accounts with the same payment system. These systems allow you to withdraw money from your bank account and send it internationally quickly.
Fees differ depending on which service you choose and it’s advisable to compare providers to find the one that suits your needs best. Security-wise, these online payment providers need to comply with strict regulations depending on their jurisdiction and are usually very safe.
Finding the best way to send money overseas can take a bit of research and comparison shopping. While each method has its advantages and disadvantages, knowing your business’ needs is the only way to find the best international transfer option.