If you’re wondering how to send money overseas, online transfer services are the way to go as they provide fast money transfers anywhere in the world.
When sending money overseas, you’ll want to do your research to find the best offer, so you can decrease the fees common with international transfers. This will give you the opportunity to make transactions according to the most convenient and profitable option available.
Types of fees
Typically when making a transfer, the provider will charge you a fee which usually comes in the form of a fixed commission and as a percentage of the transfer amount. Fees may also vary depending on a number of factors such as the direction of the transfer, the method of sending, and the method of receiving the transfer. These types of fees, which are known to the sender in advance, are called explicit fees.
Commissions that services add to the amount of the transfer without directly indicating it (hidden commissions) are legal. Banks and payment systems do this to earn extra money from their clients. Make sure to choose only reliable and trusted financial institutions when sending money.
While wire transfers are familiar to most people and are considered to be the most conservative way to send money overseas, their transfer times can be rather slow and carry high fees if you wish to speed up the transfer process.
Banks have their disadvantages
- For most banks, the transfer amount is strictly limited to $5,000 per day. If you need to transfer a larger amount, you’ll have to split it up and send it on different days, which may be inconvenient.
- Another disadvantage with a bank transfer is the high commission. Many banks have their own fees for domestic and foreign transfers, which can exceed 5%.
- A bank can be slow to transfer money. If the client needs an instant or fast transfer, it’s worth looking for another option, like the instant transfers we offer through Cashero.
- You’ll probably need to give the bank a few documents, which makes bank transfers time-consuming. Banks require documentation to ensure customer safety — but this can also discourage them when they need to make a quick transfer.
Cryptocurrency
Cryptocurrency significantly outperforms the banking system in terms of fees. Transferring funds in bitcoin and other digital assets is cheaper than making the same amount of transfer through a bank. One of the reasons for this is that with cryptocurrencies, the amount of fees in most cases are not related to the amount of the transfer, but rather tied in with the specific network you are transacting on.
Bitcoin clearly proved its profitability in the fall of 2019. For example, a large investor sent 112,027 BTC ($933kk) in a single transaction. He paid less than the price of a cup of coffee (Tx fee = $3.89) for this transfer!
To send bitcoin and most other assets, it’s enough to specify the address where the cryptocurrency is going and the amount of coins. In some cases, you need to enter a tag like in the Ripple (XRP) system. However, these examples are rare and the process is quite simple.
Cryptocurrencies, of course, have their own disadvantages. Currency rates can fluctuate greatly even during the transfer, and the amount of transfer can fall sharply in only a few minutes. Also keep in mind that cryptocurrency transactions cannot be reversed. If you make a mistake in specifying the recipient’s data, your funds are very likely to be permanently lost. This is where financial institutions win over digital assets: there’s an opportunity to contact company support and try to recover the payment.
International payment systems
Modern payment systems can overcome the disadvantages of bank transfers. An electronic transaction takes up to 5 minutes. It’s enough to register in the payment system, specify the recipient’s account, and pay for the transfer in a convenient way.
These kinds of payment systems are common for online shopping payments and sending money between individuals, but they still charge higher fees, both for processing and currency conversions. With a processing fee of around 3%, this amount can get quite large as the amount of money being transferred increases.
Online transfer services
The choice of the best transfer method depends on the situation at hand. If the client needs to quickly transfer money overseas, then an online transfer service is the way to go. These kinds of services are rapidly gaining popularity among clients due to their simplicity and speed. With Cashero you get instant transfers, with little-to-no fees, and strong security. Everything you could want in a transfer service.
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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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