Using a Bank to Send Money Overseas

When looking to transfer money overseas, there are many options available to choose from.  Each option has several pros and cons that need to be considered in order to ensure that your goals are met in completing the money transfer.  There are several characteristics of a money transfer that need to be evaluated to determine how important they are to the sender of the funds.

Some of these variables include the amount of time it takes for the recipient to have access to the funds, the costs of making the transfer, the method used to determine exchange rates, the ease and convenience of initiating the transfer, and the level of security and protection from fraud that is provided.

For decades, consumers had relatively few options for sending money.  They could do it the old fashioned way, sending cash or a check through the mail and hoping it arrives in one piece, leaving it up to the recipient to convert it to the local currency.

There were money transfer services, which come with high fees and limited areas of feasibility since an agent must be present for the sender and the recipient.  And finally, banks could facilitate the transfer.  This article will present some of the pros and cons of using banks as an intermediary in sending money.

Most banks in North and South America, Europe, Australia, and many parts of Asia will allow customers to transfer funds to banks overseas.  Generally, customers must be citizens of the originating country with an active bank account and valid identification.

Customers will usually need to know the address of the bank to which the funds are being sent, including an international bank ID number called a SWIFT code.  The exchange rates are determined by the bank and change daily, so it’s a good idea to ask your bank about the methods they use to determine the exchange rate of the funds being sent.

There are several pros in using banks to facilitate money transfers.  First, there are very few restrictions regarding which countries you can choose to send money to as long as you have the information required for the receiving bank.  Second, many of these transfers can be initiated online, without even having to set foot inside a bank branch.  Next, there is no middle man to act in behalf of your recipient, increasing the security and safety of the transfer.  Finally, there is usually less paperwork involved in a direct bank transfer than in some other methods.

There are a few negative aspects of using banks to send money that need to be considered.  First, the costs associated with sending money through banks can be substantial.  Usually both the originating bank and the receiving bank charge fees for the services provided.  Also, it can be difficult to find information on the exchange rates being used by banks on the Internet.  This option is good for occasional transfers, but the high costs should inspire people who transfer funds regularly to find a more effective method.

Finally, the advent of debit cards has greatly changed the way we can now send money.  Debit cards can be sent and used almost anywhere in the world with money loaded onto the card.