Transfer Money Overseas Online

How Safe Is It to Transfer Money Overseas Online?

In today’s digital world, international money transfers can be done online. Whether it’s for purchasing property, remittances, or return of funds, sending money abroad has become a common thing. However, it’s essential to determine which money transfer options work best for your financial needs.

One of the vital facets that should be taken into account in the process is security. With the increasing number of scammers online, you need to keep your funds secure while getting the best deal.

Here’s what you need to know regarding international money transfers and how safe it is to make one online:

What’s an International Money Transfer?

Before anything else, let’s discuss what an international money transfer is. In its simplest terms, it’s a process in which the sender transfers money to another person overseas through a bank or a third-party service.

Wherever you are in the world, you can send money to anyone using an international money transfer service online. Under these circumstances, you may have two options to consider when completing a transferring process: These may include:

  • Forward Contract – In this contract, you have to set a rate but make the transfer in a future date.
  • Spot Contract – In this contract, you’ll get the rate available at the moment you plan to send money internationally.

How Much Does It Cost To Transfer Money Internationally?

When you transfer money overseas online, you need to think about the costs to complete the transaction. Primarily, banks and other money transfer providers offer different foreign exchange rates and additional related fees. Depending on the amount you’re planning to transfer, you can probably save some money by comparing transfer rates before sending money.

Below are the fees you should look out for when transferring funds overseas online:

  • International Fees – These are the fees you pay when you send or receive money from a foreign bank account.
  • Transfer Amount – It’s a fee charged based on the amount of money you have to send internationally.
  • Cancellation Fees – They’re charged by the receiving bank when you cancel your transfer.
  • Amendment Fees – These are the fees charged if you decide to change the details of your money transfer.
  • Margin – This is usually applied to the foreign exchange rate, which is why it exists as hidden costs.
  • Investigation Fees – These are the fees paid for inquiring about the status of the transfer.
  • Payment Method Fees – These are charged based on the method you use when sending money abroad.

Now that you know the potential costs associated with international money transfers, it’s time to take a look at some things to keep in mind when comparing transfer fees:

  • Method of Transfer – Find out how you’re going to send the money internationally. Check whether the company charges fees when you use a credit or debit card or make a transfer using your phone.
  • Exchange Rate – In most cases, banks and money transfer service providers don’t offer the same margin that they add on top of the exchange rates. So, it’s best to check the exchange rates and their marginal fees before you send money.
  • Amount of Transfer – Some transfer services will waive their fees if you send more significant amounts. That said, determine how much you’re going to send when you’re shopping around for fees.
  • Frequency of Transfer – If you make regular payments, then you can save on paying for transfer fees.

How Can You Ensure The Safety of Sending Money Overseas?

Typically, most senders, especially the first-timers, think about the safety of transferring money internationally. It’s a legitimate issue, especially if you don’t know whether the online money transfer service or bank can be trusted.

If you want to determine how safe it is to send money overseas, the essential rule is to only work with reliable companies for online international money transfers. When it comes to transferring money, the industry is a regulated field since several authorities provide licenses to companies specializing in money transfers. Thus, to make sure your transaction is safe and smooth, always look for a licensed money transfer company and have a better understanding of things before making a transfer.

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In addition to the reliability of a transfer provider, you should also check the precautions they use to keep your money and data secure. These may include:

  • Encryption – Transferring money to someone abroad should be safe. You can do it by using a transfer provider with the right level of encryption.
  • Fraud Prevention – Sending funds to a suspicious receiver or using a new device to log in can trigger the occurrence of fraud. That’s why you should deal with a company that requires you to answer security questions or verify your identity. Doing so can ensure the safety of your money transfers.
  • Identity Verification – If the provider requires a secure password or allows you to log out automatically after a specific amount of time, then it can be a good indication that they follow precautions to ensure your money is safe throughout the process.

What are Some Other Ways to Be Safe When Transferring Money Overseas Online?

As mentioned, there are plenty of money transfer scams you may experience online. Because of this, you have to perform some acts that can keep your transaction safe until it’s completed:

  • First, never send money to people you don’t know.
  • Second, call the person requesting money to verify if they’re your family member or friend.
  • Third, be careful about any suspicious emails. Make sure you don’t provide personal information if you don’t know if they’re legitimate.
  • Lastly, keep all your sensitive information by using a strong password and not saving any details on public computers.

How Can You Determine The Reliability of a Money Transfer Service?

Sometimes, it’s challenging to find a trusted money transfer service. Fortunately, there are factors to consider when knowing the reliability of the company. If there are clients who have praised the money transfer service provider over the years, it can be a good indication of how reliable it is.

Moreover, another way to determine the reliability of a money transfer company is its ability to efficiently and professionally deliver their services. Most established money transfer companies offer services that are tested and proven.

How Can You Benefit From a Regulated Money Transfer Service?

By now, you already know how to determine the reliability of a money transfer company. That said, it’s essential to get familiar with the benefits of transferring money with a licensed service.

Here’s how you can benefit from a reliable money transfer service:

  • Peace of Mind – By using a regulated money transfer provider, you can get have peace of mind. It means you can send funds without needing to worry about being overcharged or scammed by their services. That’s because some government agencies and authorities regulate them. They need to comply with some licensing requirements so they can continue to operate.
  • Insurance Against Bankruptcy – Regulations from the government protect consumers who use a money transfer service. If the company is licensed, you don’t need to worry if they go bankrupt because they’re insured against bankruptcy and other claims against them. In short, a regulated transfer service can be accountable to their customers.

What Factors Should You Consider When Selecting a Money Transfer Service?

Of course, it’s essential to consider some factors when choosing a money transfer service company. After all, the goal of transferring money abroad online safely is to select a service provider that meets the following essential requirements:

  • Speed – When you send money abroad online, you have to make sure that the funds are received on time and transparently. Thanks to modern technology, online international money transfers are now quick and easy.
  • Convenience – In addition to speed, convenience is also a factor to keep in mind when picking a transfer company. Luckily, most international money transfers are convenient because they can be done online.
  • Tracking – Sending money internationally allows you to monitor your transaction at every stage. From the time your payment is deducted from your account to the moment, it arrives in the receiver’s account, be sure the company you’re using has tracking services. Keeping track of your transaction can provide you the right level of security and added peace of mind, too.
  • Costs – In reality, sending money internationally means you’ll have to pay a considerable amount of funds. With all the fees involved in money transfers, it’s best to select an affordable money transfer service. That way, you can keep more savings in your pocket for moving funds across borders.
  • Customer Service – Choose a company that offers quality customer service. The level of customer service is a determining factor of how great a provider is when it comes to accommodating clients. When you deposit and transfer money internationally, it’s a good idea to talk to a customer service representative to assess the company’s way of treating its customers.
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What Are The Best Options To Safely Send Money Abroad?

With the increasing number of people who send money overseas, many services can be used for money transfers. Below are the best options:

  1. Bank Transfer

It’s one of the standard methods to send money internationally. Although bank transfers may not be the cost-efficient option, they’re undoubtedly reliable and safe. However, online international money transfers using banks come with different types of fees. Hence, it’s essential to factor this when making a financial decision.

  1. Online Payment Services

Another convenient way to send money to another country is by using online payment services. With this option, you can make international money transfers from your computer. These companies are easy to use and inexpensive because they usually offer low fees and other charges.

  1. Forex Brokers

They’re also becoming one of the most popular methods for transferring money overseas. Dealing with forex brokers means paying more competitive rates. They’re also more customer-focused because they appoint personal account managers to assist you with money transfers.

  1. Peer 2 Peer Currency Exchange Markets

These are some of the exciting transfer options you can consider. They provide you with the best transfer rates when sending money overseas. To get you started, you should set your currency exchange rates, and the market service, in turn, will look and match you up with the specific price you want. This method avoids hefty banking rates and allows you to save a considerable amount of money on fees.

How Can You Send Money Abroad Online Using a Money Transfer Company?

If you use a trusted money transfer company, here are the six necessary steps to remember from the get-go:

Register

Before you can send money online, you must register for an account. In doing so, it’ll require the disclosure of some basic personal information.

Do Identity Verification

Before you can fully complete a money transfer, you have to verify your identity. This may include uploading photos of your identification. However, the verification requirements may vary depending on the amount of money you need to transfer.

Make A Transfer Online

To get started, you need your recipient’s full name, account number, address, and bank identifier code to create a money transfer. Once you have all this information, you can begin sending funds online.

Pay The Company Using Your Bank Account

You have to transfer funds to the money transfer service to facilitate the transaction. Under this stage, make sure you talk to a friendly customer service agent to help you with the deposit.

Track The Progress of Your Money

Be sure to monitor the progress of the funds since it may probably take some time before your receiver receives it. However, the timeframe differs from the method you’re going to use.

Your Funds Arrive In The Account Of Your Recipient

The money you send will arrive in your receiver’s bank account. This process, however, involves a fee that is typically charged by the receiving bank.

Conclusion

If you’re thinking about the safety of transferring money abroad, there are a lot of things to consider. To make sure your money and personal information are safe and secure, always practice caution when making international transfers.

If you want to obtain the best deals, and choose a reputable money transfer provider, use this article to guide you with the sending process.

 

About the Author

Michael launched Your Money Geek to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.

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