Things you need to know about international money transfers

November 19, 2020
International money transfer is a daunting experience if you are paying for the first time. Learn facts about overseas money transfer with N2Xpress

Sending money abroad involves lots of tips and tricks. International money transfer is a daunting experience with different services, unclear fees, security concerns, and exchange rates. Phew!! Well, you are not alone. Though it is a bit complicated, you need not worry as we have put together all the points to be kept in mind in this blog. We have prepared a comprehensive guide where you can find out all details about the overseas money transfer. If you are an expat or work abroad, then you might wonder why it is expensive to send money to your loved ones. Unlike Skype calls, which are free ;). 

We know you must be having lots of questions about money transfers, of which you want answers. So learn the best way to send money overseas and confidently make your first transfer. We have covered the points like costs, security, speed, ease of use and much more. So let’s get started.

So here we start with a very basic question: what is an international money transfer?

Well, an international money transfer is sending money overseas or to another person or business abroad. We can do this through a bank or an international money transfer service (IMTS).

How does international money transfer function?

There are three key players in international money transfer

  • Sender
  • Receiver
  • The money transfer service provider

It starts with the sender sending a money transfer request to the recipient. Senders can send money to any person and any amount of money he/she wants to send online. Provide recipient's details and the pay the amount. 

Once the payment is initiated, the money transfer service provider transfers the funds in the recipient's account, and finally the recipient receives money instantly within seconds in their bank. 

What options are available?

You might be familiar with a few choices. As the digital money transfer is a new trend, people are sending money either through banks, building society, or FinTechs (financial technology. FinTech uses innovative technologies to transfer money quicker, safer, and cheaper.

If you are away from the web, then options left are a local high street bank, transfer at the counter or you can simply hand over cash in specialist high transfer service where you need not open an account. Last but not the least comes FX brokers who can provide good deals by securing a preferential rate, but they only deal in large volume and might not be willing to send smaller amounts. Learn how to choose remittance wisely.

Know the exchange rates

It is very important to know the exchange rate while dealing with international money transfers. Different providers offer different exchange rates. Many providers offer a meager exchange rate as from this they get their profit. So in future before making a payment or choice update yourself about exchange rate and compare rate from Google, XE, and other reliable sites. The higher the exchange rate, the better it is for you.

Learn about the service charge

Many service providers in order to attract customers claim to provide the lowest service charge. It applies the same to banks. But don't get fooled by lurking perks. 

Well, banks and other service providers are not abided by law to provide all the process details and when you transact with them. But when you are asking the right questions, they are liable to answer and you can get to the truth.

The best way to find out service charges is by finding out exchange rates. If they are offering no service fees with low exchange rates, then they are the best option to choose.

It is better to pay for a fixed service change rate rather than the ones where the rate on every dollar fluctuates. Or it is high or close to mid-market rates.

It is also important to ask if the amount sent by you is multiplied by their exchange rate is the same amount the recipient will receive on their end. If they deduct an extra fee than that should come under service charge or add under the service charge.

Check the security and reliability of the provider

Banks are secure, but they are not front runners for your choice based on the standards. The website security is prime most need of an hour. You should be keen about the security and reliability of international money transfer websites and portals and their security protocols. Researching and asking friends is also important while choosing a money transfer service provider.

Make sure that the details you provide to a website are safe and secure and always look for a green lock button on the address bar or make sure the website starts with HTTPS. 

Fewer details and more straightforward methods are always recommended.

Speed of transfer

International transfer doesn't mean it will take a long time. Important is the speed at which your loved ones or employees receive money at time of need. As we never know when an emergency can occur so always look for instant or fast options. There is a glitch in this; some service providers offer a high rate for fast transfer while others charge a high service fee for speedy transfer.

Do more and save more with N2Xpress

N2Xpress is designed to help senders and expats to send money overseas in India, Kenya, Ghana and Nigeria from Canada. It offers speed and low cost with top security features and exchange rate calculator. We offer real time exchange rates and display a full breakdown of the cost before payment confirmation. 

Well, at the end it is your choice which service provider you choose, but before choosing it is crucial to scrutinize all details and learn minute details. Let us know if this blog helped you and share your experience with us. Sign up now and learn more about us. 

Send more than money.