Whether you are paying freelancers remotely, engaged in business with foreign clients, or transacting with your suppliers abroad, money transfers overseas are bound to be a regular occurrence for you. There are a variety of methods to sending money overseas, like bank drafts, money orders, and cheques, which will be covered a little more in-depth later, but overseas payment is the safest and fastest way of sending money to a foreign currency. This method lets you remit payments easily while offering better value for your hard-earned money. As you might have to process multiple overseas payments, you must know the best and safest methods of doing it, as the last thing you want is for your money to end up in a very happy stranger’s bank account instead of where it is supposed to go. Here is an overview of the basics to get you started and give you an idea of what you are dealing with when it comes to sending your funds abroad.
Choose the Method Best for You
There is no one right method of wiring money, whether it’s a bank draft, money order, wire transfer, or online remittance, they all have their advantages and limitations. Prioritize what is important to you. Some methods are easier to process but take longer, while other options are more expensive but get there quicker. Regardless, make sure you use a trusted, reputable provider when you are looking into how to send money to Dominican Republic, for example. If it’s already sure that you will be transferring funds to multiple locations abroad regularly, it may be more convenient for you to use one service that can meet all your financial needs, such as your bank. What is important is that you familiarize yourself with the different methods first, and get a basic understanding of how they function and how you should approach them before committing to one.
Check Exchange Rates and Fees
Before you send any money overseas, you should consider the fluctuating FX rates and transfer fees that might have an impact on your transaction. The Foreign Exchange Rate is the rate that is applied when you convert your funds from one currency to another. These move up and down all the time, constantly, and can vary depending on the bank or company you use to make the transfer. The worldwide currency markets can be affected by global events, such as changes in leadership or natural disasters. Things like Brexit, when the UK decided to split from the European Union had a huge impact on the Pound-Sterling exchange rate, so keeping up on current events is also very relevant. When it comes to fees, the average expense of international remittances is 6.30% of the funds sent. These fees, if ignored for too long, can quickly burn a hole in your pocket every time you make a transfer. So, before any transfers, say you are transferring money from Spain to the UK, ask your provider about current FX rates and transfer fees to avoid unexpected costs.
Time the Transfers
You can send money overseas whenever you want to, of course, but sending it at any given time is not always ideal. Time it right, and your funds will go further. Public, religious, and bank holidays can all slow and delay your transfers, which means not only do you lose valuable time, but maybe you might also lose out on that favorable exchange rate you planned your transfer in mind. This goes for both the countries sending and receiving the funds. Generally, the worst time to exchange is on the weekends as markets around the world are closed. However, it is worth noting that weekends do not necessarily fall only on Saturdays and Sundays, as some Muslim Countries, like Egypt for example, operate on Sunday to Thursday work weeks. So, it is generally best to just make your international transfers during regular working days to avoid the delayed payments or unfavorable exchange rates previously mentioned.
Watch out for Transfer Scams
You want a service that not only meets all your needs but is trustworthy and reputable to boot. One golden rule is that if something seems too good to be true, chances are, it is. Common warning signs you should be vigilant of are things like being asked to wire your money through unusual means, being rushed into being parted with your funds, being asked for passwords and other personal and highly sensitive information, being sent a QR code that asks you to approve a “collect” request, and being offered a commission to move large amounts of money. Scams. If you are not using your bank, take some time to check that the transfer company is authorized and approved by a regulatory agency, like the Financial Conduct Authority if you are in the UK, the Consumer Financial Protection Bureau if you are in the US, or the Financial Consumer Agency in Canada. Double-check that your provider is licensed properly.
Double-check Details and Conformation
Before making your overseas money transfer, be sure to check the transfer details, like bank account number and amount. The last thing you want after all that care and effort is for your money to land in an unknown account of a very happy stranger. If this unfortunately does happen, you have to reach out to your service provider immediately and try to rectify the error. Also, once you have sent the money, make sure you have received the transaction receipt from your transfer service provider, and look for the tracking number on the confirmation. You can use this code to track the money and see if the beneficiary has received your funds.
Knowing how to send money safely will help you avoid losses while also affording you peace of mind on your transactions. Of course, sometimes mistakes, errors, glitches, and the like just happen, but if you have an idea of what you are doing, have already taken precautions, avoided obvious scams and pitfalls, and know who to contact as soon as you notice a discrepancy, you should have little trouble wiring your money.
