To the dismay of many folks living in the USA, we have recently discovered that banks are only too eager to relieve you of as much as they can in fees — hidden or otherwise. Unfortunately, money transfers to overseas destinations or back into the US are no different.
Between transfer fees, varying exchange rates and processing time, using the right service for your specific transfer needs could save you hundreds or even thousands of dollars. Here is a comparison of the different ways to make international money transfers to help you make an informed decision. In general, a money transfer company will almost always be the best option. Interestingly, remittance companies still have their place and so to do solutions like PayPal especially if you are transferring less then a few hundred dollars the recipient does not have a bank account.
In general banks not only charge exorbitant fees but they also offer subpar exchange rates. If that is not enough, they are also one of the slowest ways to move money — often taking up to a week to actually arrive in the destination account.
If there is one point in favor of using a bank — it is that you do not have to use a third party company but for the minimal time it takes to actually set up an account in our experience the benefits far out the small commitment to signing up. After considering what is important to you, you will be in a great place to make an informed decision. For amounts less then a few hundred dollars, if both parties have a PayPal account we found that PayPal and similar services can be an excellent option.
Remittance companies on the other hand may be your only option if you need to deal with cash. When it comes to regulation in the US, in February new rules were introduced by the federal government as part for the Frank-Dodd financial regulation law.
In addition to this, each state also also regulates money transfer companies. The main theme of international money transfers is that one service does not fit all, so it is important to seek out a service tailored to your needs.
Some companies handle the majority of their business by phone through a hour hotline, and for those making large or complex transactions internationally, the live service and guidance these systems are set up to provide often prove indispensable.
Others offer a more automated service over the Internet. Always choose an international money transfer service that is set up to provide you the services you need at the moment you need them, and this description fits very few banks. Other than this, just a handful of companies have domestic operations in the United States for sending money out of the country.
Companies with operations in your home country are the best options because of service levels and rates they can offer are more likely to be more competitive.
We have chosen these two because they actually have physical locations in the United States. Many of these companies offer hour service, favorable exchange rates compared to other transfer methods, and minimal transfer fees. The this growing market is extremely competitive, and so the providers will usually offer much better exchange rates than with other transfer types such as remittance companies, banks and other payment providers.
Due to strict regulations in these countries, transfer companies based in North America must be extensively evaluated on a regular basis to even operate, and they are governed by all the same regulations as a remittance service, so they also offer a high level of security. You will easily save a few percent on each transaction on average amounts to hundreds if not thousands of dollars saved.
Transumo Money Transfers We will save you. Yep, you could learn about this stuff for ever OR simply ask us directly with your money transfer question. Name not required Email required Approx Amounts to Transfer? Leave This Field Empty. August 8, by transumoadmin. Did you know American banks take a healthy cut when you make an international money transfer?
Security When it comes to regulation in the US, in February new rules were introduced by the federal government as part for the Frank-Dodd financial regulation law. Service The main theme of international money transfers is that one service does not fit all, so it is important to seek out a service tailored to your needs. It's only fair to share Return to top of page. World First - Full Review.More...