Comparing Money Transfer Methods

The world is getting smaller, and it’s becoming more and more common for people to have the occasional or frequent need to send money to people in other countries.  There are several methods available now for people who wish to send money—the options are more plentiful than ever before.

Some of the most common methods of sending money to other countries include direct bank transfers, sending money through a money transfer company, and prepaid debit or ATM cards.

There are several factors that people sending money consider important when deciding which method is best for their money transfer.  Some of these factors include speed, cost, security, and convenience.

Speed

Speed is an important factor in money transfers when the money needs to arrive prior to a set time and date.  It used to be that sending money quickly meant paying a hefty fee for a speedy delivery.  This is no longer the case, as each of the above methods can have money sent relatively quickly.  The slowest of these methods is the bank transfer, which generally takes a minimum of a day and can take up to several days while banks on either end of the transaction facilitate the transfer.

Prepaid debit cards take a few days the first time you use the method as the card has to be sent to the recipient.  However, once the card has been sent, funds can be loaded onto that card and accessed very fast.  Aside from the first time funds are sent to the recipient, this is generally the fastest method of sending money overseas.

Money transfer companies usually allow people sending money to pay more if they want money sent quickly.  For a larger fee, money can usually arrive within an hour.  As someone sending money, if there is no hurry for the money to arrive, you’ll save money by allowing the transfer to take a few days as opposed to a few hours.

Cost

Sending money can range in price from almost nothing to very expensive, depending on the method you use to send funds.  A few of the factors that can affect the costs include the destination of the money and the speed with which the money needs to arrive.

The greatest variation in money transfer fees comes from banks.  Some banks allow money transfers that are free, offering the service to attract and retain customers.  Other banks charge between $25 and $50 to wire money to a foreign bank.  Your bank will be able to tell you what their fees are, but remember that when sending money through banks, there could be a fee on the receiving end as well.

Money transfer services have become more affordable as viable competitors have threatened to take market share with more convenience and lower prices.  People sending money through a money transfer company will generally pay between $5 and $15, depending on the country money is being sent to and how quickly the money needs to arrive.

Prepaid debit cards are usually the cheapest way to send money, with fees in the neighborhood of $5 per transfer.