Money transfer is growing steadily in the financial sector. With the use of Internet and other digital systems, it becomes much easier for people to transfer money. As an example, people can use smartphones to transfer money through web browsers or dedicated banking apps. Because you will do money transfer quite often, here are a few things you should consider:
- Check any hidden exchange rate cost: If you plan to transfer money internationally, it is likely that you will need to convert the money. You should be clear about how much fee that you need to pay for exchanging to different currency. As an example, some companies may offer you attractive exchange rate, then they will hit you with a hefty fee, leaving you worse off.
- Read the small print: You should check all details related to the money transfer. As an example, sending money to a specific location can be quite costly.
- Plan ahead: If you don’t need to send the money urgently, you may do a delayed transaction. Rather than sending your money immediately, you may arrange it to arrive 2 or 4 days later. If you do this, the transfer cost can be lower. If the recipient doesn’t need the money urgently, you can lower the fee by about 25 percent.
- Calculate how much money that the recipient will get: It’s a good way to compare between different money transfer companies. For a specific amount of money, you should know how much that will arrive to the recipient. Make sure that the amount of money transferred is nearly the same with the money that you send.
- Use bank to bank wiring transfer: If you are transferring a large amount of money, you should wire it from bank to bank. It will be much safer for you. Any information related to the money transfer will be encrypted. It will be difficult for hackers to intercept the information and crack it.
- Don’t use credit card: When transferring money, you should avoid using credit cards. If you use credit cards, you will need to pay the cash advance fee and this will add to the entire cost.
- Open a joint account: A cheap way to transfer your money is to open a joint account. First of all, you need to make sure that you choose a credit card company that offers a good withdrawal fee for all overseas transactions. Of course, you should create a joint account only with someone who you really trust. The person in the originating country will need to pay the bill.
- Always shop around: Of course, you should always shop around, especially because many money transfer services are joining in this industry. A newcomer may seek to undercut existing players in the industry, so working with them should be good for your business. Finding an alternative money transfer could provide you with a lower money transfer fee.
- Gather proofs: Make sure that you always keep proofs in safe place, Make sure you keep reference numbers, receipts and other proofs.