5 Tips To Know Before You Send Money Internationally

If you’ve never had to send money internationally before, anyone who has will be sure to tell you that it is a much more complicated process than sending money within the United States.

Yes, there are a variety of ways for how you can send money overseas. You can send it via a third party money transfer service, a bank wire transfer, a prepaid debit card, or a money order to name a few of them.

But each of these methods all have one thing in common: they have a variety of hidden fees, costs, and steps that you may not have thought about. Unfortunately, sending money overseas is not as simple as choosing your recipient, typing in the amount of funds, and pressing ‘send.’

Here are five tips you will need to know before you send money internationally:

Tip #1 - Transfer Service Providers Are Your Best Bet

If you need to send the money to someone right away, such as a friend or a family member in an emergency situation, your best bet would almost certainly be a money transfer service provider over alternative options such ons such as bank wire transfers or online transfers.

The reason why is because you will get to choose the speed at which you need to send the money, such as same day or next day in the case of dire an emergencies. Furthermore, some transfer service providers do not even quire you to set up an account with them to send money, and you can also send money online or on an app versus having to travel to a physical location.

Tip #2 - Be Aware of Government Regulations

Government laws, rules, and regulations may vary significantly when it comes to the remittance industry. For example, did you know that remittance is not permitted for the purposes of margin trading or gambling in India?

Most countries will also overseas transfers for things such as household maintenance, equity investments, purchasing property, or paying tuition to a university.

Nonetheless, it’s up to you to find out which regulations and laws and apply to you. The last thing you want is for your transaction to be blocked or reported to a government regulator.

Tip #3 - Get A Guaranteed Exchange Rate

The exchange rate between currencies is always changing multiple times throughout the day, and furthermore it can change drastically between transfer service providers. You’ll have to pay a margin of the exchange rate, usually 1-5%, as part of your overall fee to send the money.

What this means is that even if you plan to send money with one particular provider, the exchange rate you’re seeing now may or may not be the one when you actually send the money.

The most surefire way to prevent this from happening is to get a guaranteed exchange rate as part of a quote from your service provider. If they offer you an estimated exchange rate instead, for all you know they will increase it when it comes time to send the money.

Tip #4 - Send Money On Weekdays

Monday through Friday is the best time to send money internationally because the live exchange rates are open.

In contrast to this, the markets are closed on weekends (as well as on international holidays). What this means for you is that if you send money on a weekend, the exchange rate you are quoted will have to be an estimated rate and not a guaranteed one.

To ensure you get the lowest rate possible and pay the lowest amount possible in fees, you’ll would be wise to send your money on weekdays.

Tip #5 - Shop Around For The Lowest Fees

The exchange rate margin is only part of what you will have to pay to send money internationally. You’ll also have to pay an additional fee, which can either be a flat rate or a fixed percentage (1-5%) of the amount that you are planning to send.

The best advice that can be given to you here is to shop around the various money transfer service providers to find the lowest fees possible. Keep in mind, assuming you’re not sending a particular large amount of money, you’ll almost always pay less in fees with the percentage option.

Tips For Sending Money Internationally

While the process for sending money internationally is a rather complex one, you can avoid becoming overwhelmed your first time doing it by applying each of these tips you have learned combined with using a reliable money transfer service with the best rates.