It’s important to be cautious about the fees that may apply when sending money to a foreign country. Sometimes you just need your money sent out as quickly as possible. When you are short on time, the last thing you need to see is a 5-day waiting period for your transfer.
There’s no avoiding the fact that one of the most significant factors customers consider when selecting a money transfer service is speed. Whether they are going through their bank or a specialist money transfer business.
- Reasons For Sending Money Internationally
- How Do I Safely Send Money Internationally?
- Risks Associated With Sending Money Internationally
- Details Required For An International Bank Transfer
- The 5 Best Fastest Ways To Send Money Internationally
- Comparison Table For The Fastest Ways To Send Money Internationally
- Factors That Affect Money Transfer Speed
- How do International Currency Exchange Rates Work?
- Bottom Line
Reasons For Sending Money Internationally
There are several reasons why you may need to send money to another country and currency. They include:
- Converting your money so that you can use it while living or traveling abroad.
- Sending cash to relatives or friends in another nation.
- A purchase i.e purchase of a house all the way to a book would all necessitate payment in foreign currency.
- Mortgage payments for a second home in another country.
- Investing in another country’s business, real property, or other assets.
- Payment for services: It might be international education expenses or a wedding in another country.
- Completion of work: This may be payment to a foreign company or a freelancer.
How Do I Safely Send Money Internationally?
There are a few things you can do to keep your cash safe when you shift huge amounts of money overseas. All of the expert providers we evaluate are held to the highest security standards and are usually fully licensed. They also carefully adhere to both national and international regulations in order to provide the highest level of customer satisfaction.
- Bank transfer: You can transfer money between your bank and another country’s bank, but hefty costs will be imposed.
- Online cash transfer services: Wise is a leading eCommerce platform that specializes in small business to large corporations. Wise is transparent, secure, and fully accredited by the government.
- Peer-to-peer (P2P) transfer services: You can use services like PayPal and Wise to connect you with individuals who want or are willing to trade the currency you wish to exchange.
Risks Associated With Sending Money Internationally
All of the services we’ve suggested are secure and safe ways to send money abroad. However, it’s a good idea to understand the potential hazards before you get started.
- Exchange rates: When you get a quote, most lenders lock in your exchange rate. If possible, it’s best to wire money from the receiving bank’s currency to avoid extra fees. It is also important to understand the fees associated with the transfers since a firm may advertise low transfer fees but then inflate the exchange rate.
- Scammers: Scams may be in form of text messages, emails, direct calls, and websites. Scam artists try to get individuals to wire cash overseas since once the money departs your account, you are powerless to get it back. Always transact using a reputable company when sending money internationally.
- Hidden fees: It is important to ensure that you understand all of the expenses ahead of time. The mid-market rate is often what servicers quote. The servicers may as well charge commission and transfer fees after adding a markup on the exchange rate. Others utilize a free introductory transfer before adding hefty continuing costs.
- Limits: Some services work best with large transfers, while others function better with little ones. Understand your limits ahead of time, particularly if you know you will have to make frequent transfers.
- Delays: Delays are unavoidable even with the most established firms. Despite the fact that these are not always the servicer’s fault, they should policies in place to reimburse you if it happens.
Details Required For An International Bank Transfer
One approach to transfer money abroad is to use a bank, but it isn’t always the best choice. If you intend to wire money through the bank, you will need access to all the banking information of the recipient. The information includes:
- Address and name of the bank to which you’re sending the cash.
- Recipient’s address, full name, name & number of the account, or International Bank Account Number (IBAN).
- Receiving bank’s BIC/SWIFT code.
- Reason for sending money abroad.
The 5 Best Fastest Ways To Send Money Internationally
The following are the best and fastest ways to send cash internationally. They include:
PayPal has superior consumer appeal than other peer-to-peer money transfer applications such as Zelle and Venmo due to its simplicity and variety of payment options. A money transfer takes only a few minutes and can be completed the very next day. The platform is also an acceptable payment at 75% of online retailers, so if a user doesn’t need to connect their bank account, they may spend money on the site using their PayPal balance.
PayPal’s international money transfers are expensive, therefore they’re only suitable for sending cash within the United States. It also allows for the most massive transfers, with no upper limit on the overall amount you may send but a limit of $10,000 is set for individual transactions.
- How it Functions: PayPal users can send money to family members and friends using the app or on the internet through a web browser. Account holders can use a variety of payment options to send money; recipients must be PayPal account holders. The sign-up process is both free and quick.
- Payment options: Debit cards, credit cards, and bank account.
- Fees: Sending money to friends and family in the United States using a PayPal balance or linked bank account is free. However, sending via a debit or credit card or PayPal credit is subject to a cost of 2.9% of total amount sent plus fixed charge of $0.30.
- Time taken to receive payment: The recipient’s PayPal account is credited immediately with the funds, which can be transferred to their bank account the next day.
- Transaction limits: Accounts that are verified have no maximum amount of money that may be sent, but they are limited to $60,000 (in some cases $10,000) for every transaction.
Zelle is a fantastic peer-to-peer payment tool for bank account transfers if you just want to send money to someone but do not care about the added benefit of paying through an app (like PayPal). It usually takes days for online payments to go through, but Zelle can complete the transactions in a matter of minutes.
- How it Functions: Zelle is available only through direct partnerships with credit unions and banks. Customers must first register for Zelle directly, which may be completed from their bank’s website or app, and then enroll their profile. You can use Zelle even if your bank isn’t currently linked to it, as long as you have an Android or iOS device with the Zelle app and a participating financial institution.
- Payment options: Zelle only allows you to send money straight from your bank account.
- Fees: There is no charge to send or receive money.
- Time taken to receive payment: According to Zelle, recipients who are already a part of the program will receive funds in minutes.
- Transaction limits: It is dependent on the sender’s credit union or bank. Customers who are using the service exclusively through its smartphone apps and do not have a Zelle-connected bank account can only transfer up to $500 each week.
It’s critical to consider exchange rates and charges levied by the service when choosing a service to send money overseas because not all services charge the same amount. WorldRemit has the lowest cash sending costs, and it gives a better exchange rate than Xoom.
- How it Functions: To make a money transfer, you must first create an account with WorldRemit; however, creating an account is free.
- Payment options: Google Pay, bank account, Apple Pay, credit card, prepaid or debit card, Trustly, Soford, Poli, iDEAL, and Interac.
- Fees: Transfers costs vary, and they differ based on where you are sending the money. For example, if you want to send $50 to a Walmart in Mexico, you’ll have to pay a $3.99 fee.
- Time taken to receive payment: Transfers are usually instant, with delivery taking anywhere from 24 hours to 7 days depending on the area.
- Transaction limits: It is dependent on the nation where you are sending the cash. You can send $9,000 each day if you’re using a debit, credit, or prepaid card from the United States to another country.
Formerly TransferWise. Easily transferring money from one currency to another is made simple by Wise, a firm that provides “borderless banking.” It is possible to make regular money transfers using the platform without having to set up a borderless bank account.
- How it Functions: Setting up a Wise borderless bank account is free and only takes an initial $25 deposit. Each part of the bank account can be set to a specific currency. The account may store and manage more than 40 different currencies. A MasterCard is the debit card linked to your Wise account, and funds may be added in a number of ways.
- Payment options: Apple Pay, direct debit, credit card, wire transfer, and debit card. The fees for the payment alternatives depend on the currency being paid or changed to.
- Fees: 0.45% – 3% fee for card conversion currencies, $0 monthly account charge, ATM withdrawals of $250 for the first month are free and anything above that is imposed a 2% fee.
- Time taken to receive payment: Time taken for money to arrive on a MasterCard is determined by whether they’re added immediately or after several days.
- Transaction limits: There are no restrictions on how much you may take in and keep in all the currencies, other than the dollar. There is a daily $250,000 limit and a yearly $1 million limit.
If you need to send money to a bank account in another country and want to do so in the local currency, Remitly is an inexpensive alternative. This service provides an estimated delivery time and when not met, your money is refunded. One of the biggest benefits of Remitly is its express service, which costs $3.99 and completes transactions in minutes. Remitly offers a home delivery service to the recipient, which takes between 1 and 2 business days.
- How it Functions: It’s completely free to create an account with Remitly. After you’ve logged in, pick where you want the money to go and how you’ll receive it; you can send either in United States dollars or have them converted.
- Payment options: Debit card, credit card, and bank account.
- Fees: Remitly’s fee structure is determined by the amount being sent, the country of origin, and the destination. For instance, sending United States Dollar to the Philippines and having the recipient receive it in his or her local currency does not incur any fees if done via economy. However, $0.49 fee is imposed when transferring money from the United States to Argentina. A fee is incurred when sending payments in USD, and it’s calculated according to the amount of money sent. A 3% fee is levied by Remitly if you use a credit card or a business debit card to pay.
- Time taken to receive payment: After 3-5 business days, the money will be sent to your bank express within minutes. Deliveries may be made using this service, and delivery times are determined by the destination. In addition, Remitly has local partners who will come to your home to collect the package.
- Transaction limits: There are three tiers of transaction restrictions with Remitly, each requiring more information verification. The bottom tier has a daily limit of $2,999, while the top one has a $10,000 daily limitation.
Comparison Table For The Fastest Ways To Send Money Internationally
|Transfer Method||Best For||Fees||Minimum Transaction Amount|
|PayPal||Domestic transfer of a large amount of cash and Domestic peer-to-peer transfer.||2.9% + 30 cents for sales within the United States||No limit|
|Zelle||Quick Domestic bank transfer.||$0||No limit|
|WorldRemit||Quick International cash transfer.||$3.99||$9,000|
|Remitly||Sending money from developed to developing countries.||$0 when using bank account but 3% fee when debit or credit card is used||$10,000|
Factors That Affect Money Transfer Speed
Many elements combine to influence how quickly your funds are delivered to your beneficiary when you send money internationally. The following are the most important of these elements:
- The destination and source countries: It is quicker to send money between countries where currency exchange is widespread.
- The service you’re using: Using a bank, online services, or a currency exchange service like MoneyGram or Western Union can significantly affect the transfer speed.
- Payment method: The way you send money to your beneficiary will influence how quickly the money transmitter gets it there, as well as how long it takes them to hand over those funds.
- Receiving method of the beneficiary: Your recipient may access their funds in numerous ways, each with a different impact on the transfer time. Those ways may include cash delivery, bank deposit, or cash pickup.
- Whether you are a signed-up member or not: It may take some time to gather the information you’ll need, apply for an account and submit supporting papers if you do not have a money transfer account.
How do International Currency Exchange Rates Work?
The mid-market rate is often used as a reference for international exchange rates. This is the rate at which large banks negotiate currency transfers with one another. When you use a remittance service, you’ll be charged the mid-market rate and frequently will be levied an additional fee.
With just a few options, sending money abroad was simple. The rise in alternatives makes the procedure more difficult today. However, it also gives you greater control over your finances by allowing you to select whatever works best for you. The best option should fulfill your requirements, save you money, and provide you with peace of mind.