Planning on sending money to friends or sending money to family in a different country is a daunting concept if you haven’t done it before. Americans transfer over $150 billion each year to people in other countries.
So, if you’re wondering how to send money abroad, it is important that you know how the process works.
In this guide, we take a closer look at the different ways to send money abroad. Plus, we’ll give you some top tips for sending money abroad.
Transfer at Your Bank
An international transfer or wire transfer involves two people. One transfers from one account to another.
The first party deposits cash into their bank account at home or at the bank. Then, the second party withdraws cash from their own bank account.
For the best rates, both accounts must belong to the same financial institution. If both accounts do not belong to the same bank then intermediaries get involved. These third-party payment services mean a steep hike in fees.
You can avoid fees by taking a look at these other services.
Third-Party Payment Services
Third-party companies don’t only work with banks. They also have their own avenues to aid bank or cash transactions for their customers.
Money transmitters, as they’re known, also charge fees. But because you’re not dealing with the bank as well, fees are often lower.
In most cases, you will have to pay an upfront fee before your transaction can take place. Once it’s completed, you should receive confirmation within 24 hours. You may also need to wait up to five business days after receiving notification to be sure it’s all gone through.
Money-Sending Apps
There are a wide variety of payment apps available on iTunes and Google Play. Each has its own perks, but all work in a similar way. They allow users to send money abroad without having to visit somewhere. In turn, this reduces fees even further.
Some of these include Paypal, TransferWise, Xoom, WorldRemit, or Western Union. Yet, many people find that using such apps isn’t as much of a deal as first thought. Many use poorer exchange rates to accommodate “fee-free” transacting.
Use Cryptocurrency Services
Cryptocurrencies offer several advantages over traditional methods of sending money abroad. The biggest one is the introduction of stablecoins in recent years. These allow you to exchange 1:1 with the dollar unlike volatile cryptocurrencies of yesteryear.
Also, by using the right currency, coins such as Litecoin have very low transaction fees. Here, you’re getting an almost fee-free transaction. No more money ending up in the pockets of an intermediary!
Transactions are also very fast; with cryptocurrencies, transfers happen within seconds or minutes. Another benefit is security; unlike banks, cryptocurrency wallets don’t hold customer data. Finally, cryptocurrencies provide anonymity because no personal details need providing when making payments.
The downside? You’re relying on the person you’re sending money to have given you the correct details. Or, them even having a wallet at all. Plus, if something goes wrong, you’re not insured against any losses due to human error.
How to Send Money Abroad
With more legislation than ever, prices for sending currency abroad are high. But if you’re wondering how to send money abroad, there’s good news.
Now there are more ways than ever to make sure your assets move to the right people in the right places, without all of it disappearing before it’s arrived!
For more advice that gives you financial security and peace of mind, keep reading to see what else you can learn!