International Money Transfer Services

A common dilemma which faces Australians, South Africans, Canadians, British, New Zealanders, as well as citizens of smaller countries is sending money internationally. An array of choices does exist for international money transfers, but finding a quick, secure and inexpensive money transfer service is not always easy.

Money Transfer Options

Everyone has heard of the top money transfer companies. Most of the companies have locations throughout the world. Secondary countries have small copycat locations in various locations. The problem with these money transfer service is that you almost always have to perform transactions in person and you must use cash.

This presents a safety issue on both sides, as you become easy prey to those undesirables waiting in the shadows. Some money transfer services will allow you to transfer cash to a bank account, but those are few and far between.

Money transfer services seem to be a better option for people in remote locations who have no bank account and no local address. This service is also suitable for overseas travelers who need quick cash sent from their home.

There are advantages and disadvantages to using money transfer services:

Pros:

1. Multiple locations even in remote areas.
2. Internet access is not required.
3. No bank account is required to send or receive cash.
4. Money reaches the recipient quickly, depending on the location.

Cons:

1. You must pick up cash in person.
2. You cannot transfer money from a bank account or credit card.
3. This is a not a quick fix and not a solution if you send money on a regular basis.
4. Fees can be extremely high.

Cost

When transferring money through a money transfer service, the companies usually charge a percentage of the total amount transferred or a set fee for certain amounts. The amount the recipient receives will depend on the exchange rate and transaction fee that the money transfer agent charges.

This type of service is the best way to send small sums of money, such as on an emergency basis. Considering the fees and the exchange rates, this is not the best option if you need to transfer money frequently.

Other Options

1. If you have to send money to friends or relatives, consider making a payment to their credit card.
2. Consider gift cards. You can purchase them at retail stores or online. Many of them bear the VISA or MasterCard logo. The recipient can use them where these logos are displayed.
3. Consider an ATMCASH card. The recipient is sent a debit card. You load funds whenever the need money.

When you have to send cash to others, there are many options available. While money transfer services are quick and easy, the fees involved often put less money in the pockets of the recipient. Gifts cards are great for one-time emergencies.

Debit cards are easy to obtain and can be used on a recurring basis as they are reloadable. This is an excellent option for people who are unable to travel to pick up money, such as the elderly. Debit cards also work well for students traveling abroad or anyone who relies on money sent from someone in another country.

Comparing Money Transfer Methods (Part 2)

The final two factors we will look at when comparing money transfer options are safety and convenience.

Safety

As technology has become more advanced, one of the benefits involving money transfers has been that security has increased in every available method.  Most companies that facilitate money transfers who hope to be competitive take every possible measure to ensure the safety and security of each dollar than is transferred.

Banks handle security with thoroughly protected computer systems that encrypt customer data and require government issued identification to send and receive money.  Banks are responsible to account for every dollar entrusted to their care, and they do a great job with security.

Both money transfer companies and online companies that offer prepaid debit cards provide adequate safety for their customers.  Over the course of the past decade, internet security has advanced to the point that it’s very difficult for hackers or others with malicious intentions to access protected information.

A security breach for a money transfer company is a serious problem, not just because of the loss of money, but also because of the damaged reputation that will result.  Today, with so many companies competing for a piece of the money transfer market, security is a top priority for successful companies.

Prepaid debit cards send money with the added security measure of a PIN number, ensuring that a card that is lost or stolen will remain protected until a new card can be issued.

Convenience

Technology has also provided more convenient money transfer methods today than ever before.  Banks have made money transfers more convenient by providing customers with the ability to initiate transfers over the telephone or the internet.  Customers don’t necessarily have to walk into a bank branch anymore.  For the recipient of the funds, each foreign bank has its own set of rules for accessing the money that is sent, so it’s important to make sure that the bank receiving the funds will be a convenient option for your recipient.

Money transfer services can also be very convenient, depending once again on the destination of the cash.  The biggest complaint about sending money through money transfer companies is the person receiving the funds has to find an agent of the money transfer company to access the funds.  In developed areas, this can be simple.  However, when sending money to people in more rural areas, this can become a major hassle as they attempt to access the funds.

By far the most convenient money transfer method is the prepaid debit or ATM card.  An internet connection and valid social security number is really all that is required to get started.  The person sending funds initiates the transfer online, and a prepaid debit card is sent via Fed Ex to the recipient.

The person sending funds then provides a PIN number to the recipient, who can access the funds at any ATM machine.  This prepaid debit card can be reloaded with funds by phone or online anytime once the recipient is holding the prepaid card, the ultimate in money transfer convenience.

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.