International banks are usually the best way to transfer money. This method is the most secure, faster, and cheaper than cash, money orders, or credit cards. Not only banks but money transfer companies help with international bank transfers. Hence we need to understand what is the best way to send money internationally. International banking transfer usually takes 1-4 working days depending on the destination.
What is the best way to send money internationally?
Bank transfers are convenient but usually a more expensive way to transfer money. Bank transfers are a convenient but usually more expensive way to transfer money. Compared to banks, money transfer companies may save up to 3-4% of the money you plan to send abroad. Money transfer companies can be cheaper for international bank transfers.
Earlier known as TransferWise is one of the cheapest and offers the best exchange rates. The upfront fees are the lowest if you use the bank account, less than 1% of the transfer amount. Bank transfers may take days but with wise same-day delivery is possible. Transfer with a debit or credit card arrive in minutes. When using a bank account it takes on an average of 1 to 3 business days depending on the destination.
Sending limit is up to $ 1million per transfer if you are using a wire transfer to pay Wise. You can even pay with a debit, credit card, Apple Pay, or direct debit from a bank account. The recipient needs to have a bank account.
OFX is one such medium that doesn’t charge transfer fees regardless of the amount of money sent. Exchange rate markups are less than 1% and you even get favorable rates. With OFX there is no same-day delivery option. OFX receives bank transfers within 1 or 2 business days and delivers in another 1 or 2 business days. The least per transfer is $500 and there is no set limit for transfers in between bank accounts.
Xoom is best known for its fastest delivery and great web experience. It is pricey for an online provider. Xoom has low upfront fees of under $5 with a bank account instead of a debit or credit card. The exchange markup rates can be over 3% and some providers mark up the rates less than 1%.
Transfers arrive in minutes regardless of payment methods. It may take up to a few days depending on banking hours or time zones. Cash pickups at supermarkets or different location delivery are available in some countries. Sending limits vary but individual transfer caps are at $50,000. Transfer with a bank account, debit, or credit card, and a PayPal account is available.
MoneyGram is famous for fast delivery and in-person transfers. The upfront fees for transfers are by a bank account. It tends to be low but fees for other payments, as well as MoneyGram’s rate markups, can go over 3%. Delivery is possible on the same day regardless of payment choice. It can be longer in case of banking hours and other factors. The largest online transfer per month can be done at $10,000. There is an advantage to physical locations. People without a bank account can pay in cash and have funds picked up.
In-person transfer & destination countries not offered by other providers are the specialties. Fees for transfers up to $1,000 are under $5 but markups range from less than 1% to 6% depending on destination. Same-day delivery is possible when a transfer is sent to cash pickup locations. You can even use a debit or credit card though you might pay more for quick services. The cheapest transfer is through a bank account and can take over a week for delivery. Western Union is the biggest transfer provider worldwide.
What is the easiest and cheapest way to transfer money internationally?
Using a bank account is convenient but is more expensive. Money transfer companies are the cheapest way to make an international bank transfer. The exchange rates are better and fees are lower than the bank.
Is PayPal the only way to send money internationally?
No, PayPal isn’t the only option to send money abroad. Indeed there are many options available to send money. Western Union, MoneyGram, OFX, Wise, and many more are examples.
What information do you need to transfer money?
You might need to provide some of the following details for a money transfer:
- Full name and sometimes address of the person receiving the money.
- The bank that will receive the money.
- SWIFT code (BIC) of the bank.
- Recipient’s account number or IBAN.
Please bear in mind the following:
- The full name on the money transfer should match the full name on the ID of the receiver. So ask the receiver to give you their full name as it shows on their identification document.
- The person who receives the money can be the same person who is sending the money.
- You can get the bank information either online or with the help of a bank statement.
- A SWIFT code identifies the bank and not personal information.
- IBAN (International Bank Account Number) is the part where mistakes often happen.
The reason is a long string of letters & numbers hence be careful while filling details.
International banking transfer is the same as wire, telegraphic, and international money transfer. As it is sending money between banks in different countries. Choose the right medium with good rates and easy money transfer.