If you wanted to send money overseas for any reason more than a few years ago, it could be a frustrating process, filled with uncertainty around when the recipient would get the money, if they got it at all.
Because the process took so long, changes in exchange rates risked you either paying too much or too little. This could be particularly important for large commercial transactions.
It was only about a year ago that I had a friend wanting to send money from their bank account to their child’s bank account on the other side of the world. She was told it would take a week. And the bank was taking a nice fee for the service.
Money transfer companies can and do arrange the movement of money around the world far more quickly, and cheaper too.
If you want to pick the money up as cash, you need to go to the office of the money transfer company. Not every money transfer company has an office in every town in every country, so that may not be a practical option if you must travel hundreds of miles to get to the nearest office.
Another hassle was providing proof of identity, especially if the sender sent some incorrect details.
However, with today’s modern online money transfers, you can send money to the other side of the world safely and securely, and even have it deposited directly into the receiver’s bank account.
I’ve seen some money transfers completed in less than 2 hours from my bank account to the receiver’s bank account on the other side of the world.
Many websites provide good comparisons between the main companies that conduct this business, including moneytransfercomparison.com.
Here are some of the pros and cons of using the various money transfer companies.
Pros
Fast – Cash transfers are incredibly quick, sometimes completed in just minutes.
Choice – many companies are doing this now that are well rated, so you can look around for lower fees or faster transfers. You don’t have to stay with just one company.
Easy to use – With a smartphone, you can quickly download the app, set up your account, and complete your first transfer in just minutes.
The cons
Weak exchange rates – compared to bank account deposits, the exchange rates through money transfer companies tend to be less favorable.
Transfer fees – most companies are upfront with the cost to transfer, and for larger amounts, you will want to shop around before you go ahead with the transfer.
Untrustworthy provider – you can stay clear of this issue by only using reputable companies whose names appear in the top 10 money transfer companies lists that you can easily google on the internet.
Picking up cash – Like anywhere, it is not wise to carry large amounts of cash. Some money transfer offices are located inside shopping malls so it can be easy to view someone at the money transfer counter receiving huge wads of cash. This exposes you to the possibility of being mugged and your money stolen.
So be careful and take precautions, like not being alone when you get the money, and going directly to your bank to deposit the money.
Money transfer companies have made it fast, easy, safe, and cheap to move money around the world.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligenceÂ
