Whether you are sending money overseas to prepare for your travels, sending a gift for a loved one or are making a transfer for investment purposes, transferring international currency is no longer a tedious process. Learning the basics of transferring international currency with these precautions and options will equip you with all you need to make a safe and timely transfer; without being hit by exorbitant credit card fees. Here are the basics to get you started.
Transferring International Currency
Here is a close look at what needs your attention when you send money overseas. These are general pointers to understand the process of transferring international currency.
Of paramount importance in any financial dealing is the safety of the money involved. It is even more crucial when it entails a foreign currency transaction.
It is important to make sure money is routed through the proper channel and it reaches the beneficiary on time. Hence, it is prudent to do some research and find the best option. Be aware of fraudsters and avoid them by choosing companies that are regulatory compliant. These days you’ll find customer reviews of almost all the service providers. Reading these reviews can help you in choosing better.
Knowing the details of the company or agency you are entrusting your money with is essential. It should never be overlooked for considerations such as best exchange rates, low service fees or even any marketing offers.
On the same lines as safety, there should be complete transparency on the part of your service provider. Whether it is information regarding its scope of operations, service and transaction conditions and charges, the turnarounds promised, make sure the company follows transparency. Ideally, the company should inform you details about the charges and fees upfront.
Different money transfer companies may have different timelines for completing a transaction. Make sure you choose one that offers prompt transfers. The timelines offered should be on par with the market standard if not better. That also can be a validation of how established the company is.
Economy of transaction
Foreign currency rates can be extremely fluid and fluctuate regularly. In such highly unpredictable and swerving conditions, it is important that you save precious money.
Just shopping around and browsing online can throw up plenty of options to use to send money overseas at the best exchange rates. Compare exchange rates published by banks, authorised foreign exchange dealers and foreign currency websites before choosing a particular service provider.
Similarly, check and compare the service charges and any hidden transaction costs.
Look for the track record of the money transfer company. Are they customer friendly and have a fair reputation in the industry?
Did you feel reassured by the quality and speed of response during the initial call? It could be just one component in judging them but it still essential.
The options available for transferring International Currency
Money transfer companies
Money transfer companies that engage in foreign currency transactions also work with third party franchisees. The money is transferred to the target country where the recipient can collect it through a convenient mode (from a local office/franchise/bank/online).
Money transfer companies can be quite convenient with decent turnaround times and reasonable fees.
These days, doing your transfer the digital way is most popular. All you have to do is open an online account with the service provider, enter the recipient account details and money is transferred to the recipient’s bank account.
Online transfers are faster and more economical. However, you should make sure the site or portal you use is reliable and safe.
Then there are the newer channels like Paypal that can mean lightning fast transactions with a very low fee.
There are also foreign currency specialists like TorFX, OFX, HiFx, World First and Western Union that are particularly cost-effective when transferring large sums. Their conversion rates for higher amounts, say over $10,000, can be quite competitive.
Peer to peer (P2P) companies such as Transferwise and CurrencyFair are ideal when the amount is higher. You could get the best exchange rates here.
If you are looking for something safer and conventional, you can opt for the established channels such as Australia Post and the International Money Order.
This is one of the most traditional routes of sending money overseas. Banks are as safe and secure as it can get. Transfers can be done directly to the bank account overseas if you have all the details such as the receiving branch and the correct beneficiary account number.
Most banks offer transfer services across important currencies. These days it is possible to send money overseas using the mobile apps and net banking features offered by the banks. In most cases, all you need is a mobile number or the bank details of the beneficiary. Be sure to check out all the main bank rates, including cba exchange rates for all transfers to or from Australia. Do your research to ensure your funds are transferred without a hitch.