This post is contributed by Jon Dela Cruz.
The international money transfer industry is no longer the domain of just banks and high street forex brokers. Now, you get scores of FinTech companies from which to choose as well.
Data released by the World Bank suggests that the average cost of sending money through a bank is around 10.44%.
Another report from Infosys, a global leader in technology services & consulting that is headquartered in Bengaluru, highlights that turning to online service providers costs an average of around 5.32%.
While the latter tend to provide better value for money, how do you go about selecting a suitable company?
Cost Effectiveness
Even a slight difference in exchange rates can make a significant dollar-value difference, especially if you plan to transfer a large sum. Besides, overseas money transfer companies are known to follow varied pricing policies as well. An easy way to select a service provider based on this aspect is to look at how much money will get to the recipient once the transfer is complete.
Hedging Alternatives
If you are not in a hurry to make your transfer, you may look for companies that provide hedging tools such as forward contracts and market orders. These tools give you the ability to make the most of exchange rate fluctuations. With a forward contract, you may fix an exchange rate for transfers you wish to carry out in the future. Market orders let you target rates at which you wish to carry out transfers.
Transfer Methods
Most service providers from this realm let you transfer money to overseas bank accounts directly. Some of the prominent names that let you do this include TransferWise, WorldFirst, OFX, and CurrencyFair. Some, like PayPal, let you transfer funds only to other account holders on the same platform by using their email addresses.
Services providers such as Western Union, MoneyGram, Ria, and WorldRemit have agent networks in place, giving you the ability to send money to cash pickup locations. Some even let you add funds to mobile wallets from different countries.
Payment Methods
Most companies accept payments via bank account transfers. Some that accept credit card payments include WorldRemit, HiFX, and TransferWise. If you work with a company that has agent networks, you may pay using cash. Other methods, depending on the company you select and where you live, include Apple Pay, Google Pay, ACH, SOFORT, CHAPS, BACS, and POLi.
Turnaround Times
Factors that typically affect processing times include where you and the recipient live and the desired transfer method. Transfers to cash pickup locations tend to process in near real-time when carried out during business hours. A transfer to an overseas bank account may take anywhere from one to five business days.
Customer Service
This aspect requires your attention especially if you plan to send money overseas from time to time, because you never know when you might need some kind of assistance. Some of the top players provide over the phone support in different countries, although online help via chat and email is easier to find. If you wish to look at what previous customers of any company you select have to say about its services, consider turning to review-based websites such as Trustpilot and Feefo.
Conclusion
Finding an overseas money transfer company that suits your needs is fairly easy, provided you address a few simple factors. You might want to look beyond the cost of your transfer when comparing your options, because aspects such as customer service and speed also play important roles.
Author Bio
Jon works as a researcher with iCompareFX, an online platform that lets its users compare leading international money transfer companies depending on where they live. In his spare time, Jon likes discovering music from genres such as blues, jazz, and alternative rock.
The international money transfer industry is no longer the domain of just banks and high street forex brokers. Now, you get scores of FinTech companies from which to choose as well.
Data released by the World Bank suggests that the average cost of sending money through a bank is around 10.44%.
Another report from Infosys, a global leader in technology services & consulting that is headquartered in Bengaluru, highlights that turning to online service providers costs an average of around 5.32%.
While the latter tend to provide better value for money, how do you go about selecting a suitable company?
Cost Effectiveness
Even a slight difference in exchange rates can make a significant dollar-value difference, especially if you plan to transfer a large sum. Besides, overseas money transfer companies are known to follow varied pricing policies as well. An easy way to select a service provider based on this aspect is to look at how much money will get to the recipient once the transfer is complete.
Hedging Alternatives
If you are not in a hurry to make your transfer, you may look for companies that provide hedging tools such as forward contracts and market orders. These tools give you the ability to make the most of exchange rate fluctuations. With a forward contract, you may fix an exchange rate for transfers you wish to carry out in the future. Market orders let you target rates at which you wish to carry out transfers.
Transfer Methods
Most service providers from this realm let you transfer money to overseas bank accounts directly. Some of the prominent names that let you do this include TransferWise, WorldFirst, OFX, and CurrencyFair. Some, like PayPal, let you transfer funds only to other account holders on the same platform by using their email addresses.
Services providers such as Western Union, MoneyGram, Ria, and WorldRemit have agent networks in place, giving you the ability to send money to cash pickup locations. Some even let you add funds to mobile wallets from different countries.
Payment Methods
Most companies accept payments via bank account transfers. Some that accept credit card payments include WorldRemit, HiFX, and TransferWise. If you work with a company that has agent networks, you may pay using cash. Other methods, depending on the company you select and where you live, include Apple Pay, Google Pay, ACH, SOFORT, CHAPS, BACS, and POLi.
Turnaround Times
Factors that typically affect processing times include where you and the recipient live and the desired transfer method. Transfers to cash pickup locations tend to process in near real-time when carried out during business hours. A transfer to an overseas bank account may take anywhere from one to five business days.
Customer Service
This aspect requires your attention especially if you plan to send money overseas from time to time, because you never know when you might need some kind of assistance. Some of the top players provide over the phone support in different countries, although online help via chat and email is easier to find. If you wish to look at what previous customers of any company you select have to say about its services, consider turning to review-based websites such as Trustpilot and Feefo.
Conclusion
Finding an overseas money transfer company that suits your needs is fairly easy, provided you address a few simple factors. You might want to look beyond the cost of your transfer when comparing your options, because aspects such as customer service and speed also play important roles.
Author Bio
Jon works as a researcher with iCompareFX, an online platform that lets its users compare leading international money transfer companies depending on where they live. In his spare time, Jon likes discovering music from genres such as blues, jazz, and alternative rock.
