International money transfers. The traditional ways to send money internationally — via banks and wire transfers — are increasingly being challenged by specialized foreign exchange companies that offer online international money transfers. For many people, these could prove cheaper and more convenient than traditional banks.
An international money transfer or international bank transfer (also commonly referred to as an international wire transfer) involves sending money to either another person and/or company overseas. This transaction can be completed either through a bank (the traditional method) or a specialist money transfer service. The money can be received electronically or in cash.
The vast majority of money transfers are transacted via SWIFT or Peer-to-peer payments (P2P) which have become increasingly more common and mainstream as the technology has evolved and resulted in reduced fees whilst improving speed and security. To put it into context, SWIFT handles $5 trillion in transfers per day according to the US Treasury, which gives you an insight into the size of the market.
These services include:
- offers international money transfers to over 150 countries. They have exchange rates up to eight times cheaper than the banks, helping you avoid excessive bank fees.
- Moneycorp offers foreign exchange and global payment services to individual and corporate customers in over 120 currencies.
- Remitly lets you transfer internationally, offering direct bank account deposits, cash pick-up, or home delivery at your money’s destination
- Wise is an international money transfer provider available in 59 countries that offers transfers between cross-border bank accounts up to eight times cheaper than traditional banks.
- WorldRemit offers low-cost global money transfers in nearly 100 currencies across 150 countries worldwide.
- Currencies Direct
- SendFX Pty Ltd
- Western Union
You can also use Monito’s online comparison tool to save on fees, obtain the best exchange rates, and find the cheapest option for your international money transfers.
HOW TO SEND MONEY INTERNATIONALLY
Here are the exact steps to take when using a money transfer company to send money overseas.
- Register for an account online through the company’s official website. You will need to provide your basic contact details including your name and address.
- Verify your identity. Most of the services require you to verify your identity in order to prevent fraud. This generally involves uploading photos to prove your identity. Different companies have different requirements and are also dependent on how much money you’re transferring too.
- enter your transfer either online or via phone. You can now place your first transfer which will often involve locking in the exchange rate. Most services will require the transfer to be completed within a certain timeframe to hold the quoted currency exchange rate. Whilst other services will only lock in a rate once the transaction has been completed. The timeframe is often referred to as a “guarantee”. If you’re transferring the money to another individual then you will require the other person’s contact details including name, address, account number and Branch Number or Bank Identifier Code (SWIFT BIC or IBAN).
- make the payment to the money transfer company from your bank account.
- you can track the progress of the transfer online or via email.
- the funds arrive in the recipients’ bank account (your account if desired) and the transaction is completed.
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