Understanding international money transfers
The demand for international money transfer services seems to have been on the rise in the recent past. The absence of a universal currency is the reason why sending money across countries is so necessary. Fortunately, there are many financial entities providing such services. Previously, there were many costs associated with this service. Agencies and banks deducted hefty amounts by deceiving customers under the label of “hidden costs”. The frustration of many clients led to the arrival of new institutions providing such services. Consequently, the existing service providers had to improve their services because the new ones were established to curb the inefficiencies of the old.
Means of undertaking international money transfers
Today you have numerous options of transferring your money outside your country. Not only established banks but also can you resort to other means as well. These include:
Agencies assisting money transfer – Bodies such as Western Union, have been in this market for a while. Their services can be relied upon as almost each country in the world has opened its doors to their services. You can transfer the money from an international bank account, where the recipient can encash it without any hassle. The only thing you need to keep in mind is considering the fee they charge and their currency conversion rate. Most of these agencies provide a diurnal rate to clients which have to be adhered to and the transfer happens over the course of a week or maximum two. Limits to such an affair depends on the kind of service you opt for and the country you are sending the money to. Agencies such as Fedex have also been a part of this picture for a while. They usually deliver faster than Western Union. India Post has also started the service in recent times.
Wire Transfer – the conventional method of transferring funds globally. Allot the amount to be transferred and mention the recipient’s account details. The bank charges a fee for this service and transfers the funds within a few days, varying from country to country, amount being transferred and the banks involved. The surcharges and hidden costs via this method is what frustrated people and called for new means to transfer money. However, banks have made it convenient by making this procedure more transparent, providing customers with maximum value of their money and other secure features like tracking the funds.
Digital wallets – owning a digital wallet is the new trend in money transferring. It is as easy as having an account on a mobile application and linking it with your bank account or any other entity that provides you with monetary balance. You can use your balance and transfer funds to another person’s digital wallet. There are many digital wallet service providers and they have definitely eased the concept of transferring money, since users can now afford to split restaurant bills to sharing cabs by conveniently transferring money online.
As world economies move towards a digital age, online money transfer is the very basic intricacy that needs to be addressed efficiently. Evaluating the improvement in the service over the past decade or so can lead to the conclusion that we are progressing towards achieving efficient and transparent means of transferring money. This would allow us to make use of the value of money we own and avoid hefty payments to avail such services, which in today’s world is a requirement for most.