Searching for a money transfer service provider online is easy. A quick search shows the large amount of options which can be confusing and overwhelming.
On the other hand, not all providers can offer the best rates or service. It’s vital that you create a shortlist and compare the following factors:
As you compare money transfer companies, you get an idea of how long it will take for the provider to deliver your money to its recipient. In some cases, certain providers have the same transfer method but a few are able to complete the transfer in a shorter time.
Comparing money transfer companies will also help you find the most affordable option. This will help you save money if you want to transfer a large amount of money or make repetitive transactions. Look for favorable exchange rates (not the highest rate), and minimal fees.
While one provider can service the residents of one country efficiently, it may not have been able to extend its services to other locations in that country.This is extremely important especially if you are transferring money to remote areas in developing countries. Make sure to compare the availability of the provider locations to make your transaction as hassle free as possible.
Another reason to compare money transfer companies is to know which ones offer various options for the recipient to get the money. Some recipients prefer to pick up cash, other wants the funds to be directly sent to their local bank account, while others want the funds to be in their e-wallets.
Definitely. Fees, exchange rates and other transfer methods often change. What may be the best option today may not be your preferred provider next week. Make sure to compare the providers to know which will give the best value for your money.
Sending money internationally may vary depending on the provider but, in general, a typical online money transfer starts with registration in the provider’s website or mobile app. Key in the required information and the amount to be transferred. Once approved by the money transfer company, you have to email a copy of your valid ID for the first transaction.
Again, depending on the company, you can use cash, credit or debit card, or online bank transfer to send the funds. The money transfer company will send the money to the recipient’s bank account or mobile wallet. Your recipient can also get the money in cash from a pickup location in his/her country.
Money transfer companies make money in two ways. One is with the transfer fee and the other is through the exchange rate.
The transfer fee is charged either per transaction (pay each time you make an electronic transfer) or based on the percentage on the amount you are sending. Nevertheless, This is usually the processing fee you usually see on comparison sites.
You can save by watching out for promo codes to get discounts. Some providers offer the first transaction free of charge while others offer discounts when a customer reaches a certain number of transactions.But even if you do need to pay a fee, it will still be much cheaper compared to bank-to-bank transfers.
What you have to watch out for is the exchange rate.
As you know, the exchange rate determines how much your money is worth in a different currency. We also know that exchange rates can be volatile and usually change as each country’s economic stability and inflation rates fluctuate.
And there are providers who take advantage of this fact. They will show a higher exchange rate but once you make a transfer, you get a lower rate. The provider will then mark up the change and also pocket the difference.
This means a higher exchange rate is more of a disadvantage to the customers.
When you compare money transfer companies, make sure to choose the one with the most competitive exchange rate. This will save you hundreds of dollars in every transaction.
The value of the exchange rate is crucial for every transaction. Even a few cents on the exchange rate can make a huge difference in the end, often adding up to hundreds of dollars. One clever method is to use the limit order (if you have the time to wait) to ensure you get the best possible rate.
A limit order is an options that allows you to set a specific exchange rate value to make the transfer. This means your service provider will only make the transfer once the exchange rate reaches your limit order rate. Once this happens, you simply approve the transfer and the transaction will be processed.
Most providers will let you track your money transfer via their website or mobile application.
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