7 Best Ways to Transfer Money Internationally
With countless online services and apps doing the round these days, sending money to your family, friends, or even to business internationally has now been made easy.
Though there is no denying that the associated charges of international money transfer and the time taken vary from one online service to another, the convenience factor remains intact. Whether you want to send money to Indonesia, Germany, or Austria, it can all be made possible within a few minutes now. These methods are easy and secure. They reduce your banking time by saving contacts. You can make payments in different currencies. For making bulk payments at once, you only need to use a [dot] CSV file.
But, with a long list of services available, which are the most viable options for you? Let’s take a look at the seven best ways right here, and then, you can decide.
1. Through Banks
Most of the banks offer the services for transferring money, but they are usually way more expensive than the digital services that focus on the same. First of all, the bank rates for international transactions are considerably high.
Add to that; there’s always the exchange rate markup. Banks usually only transfer the amount from one bank account held by them to the other bank account. Nevertheless, it is still one of the most reliable ways to transfer huge amounts of money.
- Pros: Reliable and secure, and moving large sums of money is not a problem.
- Cons: It takes more time than other methods, and the charges are high due to the exchange rate markups.
PayPal has made it super easy to send money to businesses and people in any country. All you need to do is link your bank account or credit card to the PayPal account, and you can start to transfer. Relying on a credit card means you will have to pay the fees that the issuer charges.
However, linking it with a bank account makes you pay the PayPal fees that vary from country to country. Ensure that the bank account or credit card is a more affordable option in your country.
- Pros: It is easy and quick. Low fees charged, especially for minor amounts.
- Cons: The recipient needs to have a PayPal account. It charges fees for receiving money and is not allowed in all countries.
3. Western Union
Despite being one of the oldest ways to transfer money internationally, Western Union has genuinely kept up with the times in multiple ways. You have multiple options to send money through Western Union, like their app, website, or their physical locations.
You can use your cash or credit or debit card for sending money, and that money can either be picked up from a Western Union location or the bank account of the recipient.
- Pros: Flexibility of delivery options and low exchange rate markups
- Cons: It usually takes four to five days to transfer the money
OFX was launched in Sydney, but it has offices all across the world now. Unlike a few other online money transferring services, OFX keeps a small margin on exchange rates during a transfer.
However, you will have to pay no additional charges, which makes it a viable alternative to move large amounts of money internationally. The charges are based on your frequency of using their services. So, you’ll be saving money if you use their services frequently.
- Pros: Easy to use and no limits set on the maximum transferable amount
- Cons: Not instant and has a minimum limit of a hundred and fifty USD
TransferWise, a company based in the United Kingdom, provides services for international money transfers to multiple countries. It uses the current exchange rates in transferring your amount and keeps no markups in there.
You will only have to pay the fees for the money transfer, and the amount reaches the bank account of the recipient directly within a few days. You can use both the app and also website to send money.
Personal funds can transfer$250,000 per year at the maximum, and business funds can transfer $1 million annually.
- Pros: Easy to use platform that comes with upfront pricing
- Cons: Does not transfer your money instantly and has limits on daily and annual transfer amounts
Xoom is an online service provider that allows international money transfer for more than 120 countries. The thing about Xoom is that it has a low upfront fee, but that is only when you rely on your bank account.
Though it is more affordable as an option compared to the international transfers by banks, the exchange rate markup of three percent is still pretty high. The money usually takes a few minutes to transfer, if there aren’t any issues with time zones or banking hours.
- Pros: Great user experience, fast delivery of the amount, and commendable customer support service.
- Cons: Exchange rate markups of over three percent
MoneyGram is another popular service to rely on for international money transfers, and its best feature is the widespread reach. It offers services to more than 200 countries and 350,000 locations. The delivery is fast, and the feature of in-person transfers is truly commendable.
Moreover, the upfront fee for the transfers initiated from your bank account is low, but resorting to other methods of payment can make the exchange markup hit as high as three percent. It doesn’t deliver money within minutes but completes the transfer within 24 hours.
- Pros: In-person transfers and fast delivery of the amount
- Cons: The exchange rate markup of over three percent for all methods of payment except bank transfers.
So, these are the seven best ways to transfer money anywhere internationally. It is important to mention that these service providers operate in specific countries only. So, make sure to check the details first before relying on a service provider.