For many individuals, making a money transfer has become a necessity, if not a part of their daily habits. Such individuals send money from one location to another for various purposes such as sending money back home, making a purchase or a donation amongst many others. While there are several vehicles that facilitate this transfer, one of the most popular options is the telegraphic transfer. While this may be one of the most effective, quick and cheap ways to send funds, any mistake you make will cost your time and money.
Given below are a few mistakes to avoid when you want to make an international money transfer through this vehicle:
Getting the account details wrong: As a part of the telegraphic transfer process, you will need both the sender and the receiver’s bank account and routeing numbers. However, at times, these details aren’t always straightforward. These factors, which together identify the bank accounts on either end of the transfer, had different formats that vary by country. A simple transposition of the account or routeing number can lead to wrong account details being provided.
Not converting dollars to the local foreign currency: When making an international transfer, you normally will start with your local currency while expecting the right currency to arrive at the receiver’s bank account. However, you must take into consideration the current conditions when the currency conversion occurs. If you skip converting the currency at your end, the transfer can be rejected. Alternatively, the receiver’s bank may convert the funds at a higher exchange rate or for a higher fee. This can not only lead to a delivery delay but also a reduction in the amount that is being said.
Looking only at straight fees: There are only two costings when it comes to international money transfers. One of the main costings is the service fee providers that is charged for sending fund. The second costing is the amount you normally pay for conversion charges. These costing will depend on the lending institute you are sending the funds too, and the foreign exchange rate between the two currencies. If you can, do check the approximate transfer rates before you make the transfer.
Failure to compare different transfer providers: There are plenty of transfer provider services in the market that offer different yet competitive rates. In other words, you will have plenty of choices in terms of different exchange rates and fees. While it may seem like a waste of time to shop around, it will give you an idea of how much you are spending on your transfers and how much you can save if you switch to a cheaper service.
Failure to check the estimated time of delivery:Not all transfers possess the same speed overseas. NBFC’s often provide several choices of payment methods with different delivery options that can affect the speed of the transfer. For example, you can pay with a banking card to speed up the delivery, and yet face an expensive cost for that. Being aware of the available options in terms of providers, cost and delivery will help you send funds the best way that suits you.