The process of sending money abroad can be a daunting task if you are doing it for the first time. Whether you want to send money for education, immigration, or business, there are certain factors that you will have to be mindful of, such as the transfer fees, foreign exchange rates, money transfer service provider, etc.
So, what is an international money transfer?
It is often confused with outward remittance. Although there are many similarities between outward remittance and international money transfer, they have noticeable differences as well. Outward remittance only involves sending money out from a sender country, whereas international money transfer has no such distinction. It refers to the electronic transfer of funds, thus in fact includes both, outward and inward remittances.
How does international money transfer work?
There are three main players in the international money transfer, which are:
- The sender
- The recipient, and
- The money transfer service provider
To send money abroad, the sender (you) needs to initiate a money transfer through your international money transfer service provider. You have the option to send money either in person or online. You will have to pay the transfer amount, the fees involved, and provide the recipient’s details.
Your service provider will send the funds to the recipient’s account. It takes about two to four working days for the funds to be arrive in the recipient’s account.
Different ways to send money abroad
There are several ways you can opt to make an international money transfer:
One of the most popular ways to make an international money transfer is through a bank. You will need to visit your bank, make a request, and the bank will make a transfer on your behalf. However, it is worth noting that although transferring money through your bank can cost you more in transfer fees, your hard-earned money is safe and secure. The extra money that you are paying is a guarantee that the recipient will receive the funds in their accounts.
- Online money transfer service
If you wish to save money in a transfer fee, you can opt for an online money transfer service that seamlessly transfers your money from the comfort of your home. You will need to create an account online and get it verified. After creating a profile, you can easily send money from anywhere at any time, and the transfer happens almost instantly. Many banks also provide forex services on their online portals.
- Cash transfer service
It is best suited if you wish to pay for your transfer in cash. You will need to visit one of the cash transfer services in your area and fill in a mandatory form. After making the necessary payments, the agent will make the transfer, and the recipient can receive the fund within just hours. However, the transfer fee may be a bit higher compared to the online transfer services.