10 Nov 2022
Have you ever used an expensive online payment service or a bank to make a global money transfer? If so, there's a good chance you could be annually saving thousands of dollars. No matter what currency you use, there are many ways to get the best deal on money transfers, whether moving, making large payments, or just sending money to a relative abroad.
International wire transfers are cost-efficient and rapid. However, if you make any of the following mistakes, they might become expensive and time-consuming issues. Thankfully, certain methods exist to avoid these typical mistakes to maximise sending money abroad.
Let’s quickly glance over the major mistakes you make with your global money transfers and how to avoid them.
One of the first mistakes you can make when using international money transfers is failing to compare the services provided by various transfer providers. Various wire transfer companies have varying fees and exchange rates. It's critical to evaluate both banks and providers of this service. If you choose to transfer through a bank, be aware that both the sending and receiving banks may charge you fees.
However, non-bank transfer service providers typically have lower fees and better exchange rates than banks. Your choice of provider will also depend on the transfer type; if you send a sizable sum or intend to make frequent and routine transfers, a foreign exchange dealer might be a better option.
Incorrectly calculating the estimated delivery time is another common error when sending money abroad. It's crucial to conduct some research and learn how long a wire transfer will take. Particularly when it comes to international transfers, the transfer speed can vary from provider to provider.
Most non-bank wire transfer providers give customers a choice between express delivery and slower delivery. The overall speed of the transfer may also be impacted by the payment method. Delivery is typically quicker but more expensive when paying with a prepaid debit card than when paying with a bank withdrawal. Remember that delivery times can be impacted by weekends and holidays in both the sending and receiving countries.
One of the most annoying and common mistakes you can make when sending a wire transfer is giving the wrong account information to the sender or recipient. Bank account and routing numbers are frequently needed for both the sender and recipient when sending money abroad. It's not always easy to understand these specifics, however.
The account and routing numbers, which collectively identify the bank accounts on each end of a transfer, have regional variations in their formats. American banks, for instance, use account numbers with varying lengths and nine-digit routing numbers.
Occasionally, the [routing] and the account numbers are mistyped. The number format and necessary codes can differ from one country to the next, making the process challenging. If the wrong information is given, you might find that your money is transferred to a stranger's account and be forced to expend valuable time and resources to fix the error.
ACE Money Transfer ensures that you avoid making such errors by providing you with all the convenience of simple transfer methods.
Two main costs are associated with international money wire transfers: the provider's service fee and the exchange rate applied when sending money in one currency and arriving in another. Depending on the provider, both of these costs change. Not accounting for both of these fees when sending a wire transfer is a common mistake.
You might be given a high service fee but a poor exchange rate by a provider, or you might be charged a low service fee but receive a favourable exchange rate. When selecting your transfer provider, don't make the error of failing to compare these two costs.
Currency conversion must occur for money sent in one currency to arrive in another. For instance, a currency conversion must take place at some point in the process for the correct currency to reach the recipient's account when you transfer money from your dollar account in the US to a euro account in Germany.
If you skip this step, your transfer might be rejected, or the foreign bank might convert your money at a higher exchange rate for a surcharge. This may cause the recipient to receive funds in a different currency or with less money than expected.
If done correctly, sending money internationally via wire transfers is a great option. If you avoid these common errors, sending money to people worldwide is simple. What is the most effective way to send money online between bank accounts overseas?
You are left with two options for payment methods: an international wire transfer or a direct deposit of funds using local bank networks, also known as global ACH. Paper cheques are out of the question because they risk being stolen in the mail, among other risks.
It may be possible to use e-wallets or prepaid debit cards in some circumstances, but doing so may be more difficult because it will take more steps to transfer money into and out of a bank account using these methods. Wire transfers and local bank transfers accomplish the same goal when moving money from one bank account to another. Still, each remittance or payment method has its implications and requirements.
The ACE international money transfer app or website is a definite winner if you need money from your bank account to be in the recipient's account as soon as possible. Because you are sending the funds from your account to the recipient's account at the receiving bank directly, international wire transfers typically only take two business days to complete. In other words, there is direct communication between the banks.
Even though some money transfers are urgent and unplanned, most can be prepared for in advance. Fees for urgent money transfers are frequently higher, but if you can schedule regular or upcoming transactions as far in advance as you can, you can frequently access lower fees. Get ready in advance. However, there is a solution; use ACE Money Transfer to send money online because it manages your urgent transfers flawlessly.
There are thousands of ways to send money overseas, including banks, online marketplaces, specialised remittance firms, and international money transfer organisations. Each service will vary depending on variables like speed, price, payout network, and safety. With so many options available, sending money abroad is incredibly simple as long as you research and avoid some common blunders that even seasoned remitters occasionally commit.
People frequently make errors when transferring money online. However, using ACE's services, you will always get accurate and timely information on everything you need, saving you from making mistakes with your every online money transfer back home.
