How to choose the safest method for sending funds internationally
When it comes to sending money overseas, you must prioritize security. It is essential to avoid fraud, protect personal data, and ensure funds reach their destination safely. No doubt, traditional methods like bank wire transfers provide strong security. But they are often expensive and slow.
In today’s digital world, many online money transfer services offer better speed, robust security, and lower costs. But with so many options available, choosing the one that best matches your specific needs and preferences can be overwhelming.
Therefore, to help you out, here are some valuable tips on finding the safest method to send funds internationally.
1) Choose the option that’s best for you
Considering security alone is not enough for choosing the right international transfer method. Keep in mind that different methods offer varying levels of protection and may suit certain situations better than others. So your priorities for speed, cost, and convenience also matter a lot.
You have to compare different money transfer methods to choose the safest and most suitable one. For high-value transactions, traditional bank wire transfers are an ideal choice. But in the case of regular payments, online money transfer services and mobile applications are a fast and affordable solution.
As technology is getting advanced, modern banking is changing the way you transfer money. Now, you can even send money at Walgreens with Western Union. This offers great convenience, as you are transferring funds right where you shop.
2) Consider security
You must protect your funds and personal information when making international money transfers. Choose a reputable money transfer company that clearly displays its regulatory information on its official website. Additionally, look for their security protocols, such as encryption and multi-factor authentication.
3) Check exchange rate and fees
Before choosing the method for international money transfer, you must determine the exact cost. Look beyond the advertised flat fees. Some providers may market zero fees, but it’s not true. They recover all their costs by offering an uncompetitive exchange rate with a hidden markup.
So you must understand the total cost before confirming a transaction. Otherwise, there will be a lot of reductions in the amount of money your recipient receives.
There are three main components of international transfer costs:
- Transfer fees: It can be a flat fee or a percentage of the amount sent. Some providers do not charge this fee in the case of certain conditions, such as for a first-time transfer or when meeting a minimum amount.
- Exchange rate markups: This is the hidden fee at which different banks trade with each other. Many transfer services add a margin to this rate to increase their profit, which means you receive a less favorable conversion.
- Intermediary and receiving bank fees: When using traditional wire transfers, your money may pass through several intermediary banks before reaching its destination. Each of them deducts a fee that further reduces the final amount received.
4) Beware of transfer scams
Along with finding the right money transfer service for your needs, make sure the provider is trustworthy. Remember, it might be a sign of a scam if the company is asking you to wire your money through unusual means. Additionally, never share your passwords and personal information with anyone.
