If you have friends, family, or clients overseas, you may at one point or another, want to receive money from them. Just as millions of Americans send money abroad every year, many are also on the receiving end of international money transfers. The question, however, is how to receive payment from overseas, especially if it’s in a different currency. The best and most convenient option is to use a money transfer service. Transfer service providers specialize in transferring money across borders with lower fees and favorable exchange rates. But, depending on whether it’s for a birthday, tuition fees, or a large payment for valuable goods and services, you may opt to receive your money via different platforms. The good news is that these days, it’s much easier to send and receive money across international borders. Other options you can use to receive payment from overseas include a Wire Transfer, Remittance Services, eWallets, and International Money Orders. The bummer is that it’s not always clear which option is best for your specific situation. For example, your bank may be the most convenient way to receive international payments, but it’s probably not the cheapest way. In this article, we’ll break down some of the options available to US citizens who’d like to receive money from overseas. We’ll also answer some questions that you might have, so you can decide the best way to get your cash.
- Wire Transfer
Most large businesses in America use wire transfers to send and receive foreign payments. This payment method isn’t only reliable, but also extremely safe. Wire transfers also allow businesses to receive millions of dollars with very little hassle. Things are, however, a bit different for personal cash transfers from abroad. As much as wire transfers are great for businesses, they can be a bit expensive for individuals. If you’re looking to receive money via wire, you should be prepared to lose up to $50 in transfer fees. Traditional banks tend to offer unfavorable currency exchange rates. As such, you’ll end up receiving a fraction of the cash you may have received via other channels. Also, wire transfers aren’t the quickest way to receive money. If public holidays, bank cut-off times, or security checks don’t delay your transfer even further, the earliest you can expect to receive money from overseas via a wire transfer is 2 days.
- Digital Money Transfer Services
Many people aren’t aware of this option, but one of the best ways to receive money from overseas is via digital money transfer service providers. These fintech companies specialize in providing international money transfer solutions. The first thing you’ll love about receiving money this way is that there aren’t a lot of hurdles to jump. Creating an account is just a few-minutes affair that you can complete online without having to provide a cumbersome number of documents. To receive a payment from overseas via a digital money transfer service, you have to provide the sender with your account details, much like you’d do with your local bank. Online financial institutions typically provide their customers with the best exchange rates on the market. Better still, you can open accounts in different jurisdictions using the same login details. As such, you can send your clients banking details from the countries in which they are located. The transfer fees for most online financial service providers are minimal compared to other options. Depending on where your payment is coming from, you can receive cash instantly or may need to wait for just a few hours. With Cashero, transfers made between users happen instantly, but you’ll need to wait for your bank to process the withdrawal to your personal account after that.
- Remittance Services
While some digital money transfer services double as remittance services, specialized remittance companies may have better reach. That’s because this type of money transfer option usually works in the developing world. Remittance services are typically a great choice for sending money from the US. On the off-chance that you’re looking to receive cash from countries whose banking systems aren’t as developed and in sync with the rest of the world, they can also be your go-to option. You’ll just need to provide the sender with your full name, social security number, address, phone number, and email address. You can also choose a cash pick-up option if you don’t want to use a bank account.
- Mobile and Electronic Wallets
Depending on the country from which you’re looking to receive a payment, you may be able to receive money directly into an eWallet. This option is quite quick and convenient. The downside, however, is the transfer fees. Receiving money via most eWallets is even more expensive than via a wire transfer. Also, accessing cash can be a hassle, as you’d have to make a withdrawal to your local bank account.
What Affects the Amount of Money I Receive?
Assuming that you’re looking to receive a $1,000 payment from overseas, you may discover that only $930 landed in your account. Before you call your client or your bank, let’s look at some costs that may affect the amount of money you receive. As we mentioned before, either you or your client will have to pay some transfer fees when you receive money from overseas. Your bank may also charge a small fee for processing your incoming transfer. The exchange rate is another factor to consider. You and your client should agree on which exchange rate to use. The exchange rate you see on Google is rarely the one that’s used to process your payment. As such, you may receive less money.
Summary
Receiving payments from overseas has become extremely convenient, with various service providers offering different unique selling propositions. While your local bank sounds like the most convenient way to receive a payment, you should be wary of high costs and unfavorable currency exchange rates. Remittance services work best if you’re looking to receive a payment from the developing world. For everyday transactions, digital money transfer services are an easy pick. Not only do these online institutions facilitate near-instant transfers, but they do so at rock-bottom charges and optimum currency exchange rates. You, therefore, receive more of your money a lot quicker than you would have using other transfer options. Depending on where you are, Cashero can help you receive payments from overseas, hassle-free and with no hidden charges.
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As of the date of publication, the information contained on this page is deemed to be factually accurate for all terms of conditions, features, and fees. Changes made to Cashero’s terms of conditions, features, or fees after the publication of this content may not be accounted for.
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