With technological advances and the advent of the internet, making an international money transfer online has become more convenient and hassle-free. With an electronic device and a sufficient balance in your bank account, you can instantly send money abroad.
However, if you are sending money abroad for the first time, you will be well-informed about certain factors, such as money transfer service provider, transfer fees, foreign exchange rates, etc. We have a list of the common seven blunders you can avoid while making an international money transfer online.
Negligence while cross-checking the beneficiary details
Let us understand that even one petty mistake can delay the processing time, or worse, you may even lose your money if transferred to someone else. Although you can notify your bank of such mistakes, the chances of are getting back the transferred funds are thin. Besides, you will have to go through a time-consuming process to get your money back.
Before making an international money transfer online, you will need to cross-check the following details:
- The recipient’s name, account number, and home address
- The recipient’s bank account number
- The recipient’s bank’s SWIFT code.
Ignoring to compare service providers
Not all money transfer service providers offer the same benefits and rates. So, you will need to compare money transfer service providers, their rates, and other offers before sending money abroad. Make sure to choose one that offers the best foreign exchange rates, transfer fees, etc. Also, you will have to ensure that your service provider is reliable and offers a quick and inexpensive way to send money abroad.
Brush aside the purpose of transfer
Another blunder you can make while making an international money transfer online is ignoring the permitted purposes. Every country has a set of remittance rules that you will have to follow. For instance, you can send money abroad for immigration, education, employment, visa, medical emergency, family maintenance, arranging travels and tours, and opening a business.
Ignoring the transfer limit
To make an international money transfer online, you will have to ensure that you are transferring money within a certain limit. Going above the defined limit may cost you higher transfer fees. Before sending money abroad, you must find out how much you can transfer in a day, and if you send a large sum, what would be the cost of sending money abroad.
Expediting the processing time
Most international money transfers take about 2 to 4 working days to reach the recipient. Unless you have to meet an urgent requirement, it is better not to expedite the processing time. But, if you want the funds to reach the recipient sooner, you will have to incur higher charges. A golden piece of advice would be to avoid expediting the transfer processing time to save money.
Avoiding the foreign exchange rate fluctuations
Given the fact that you will have to transfer funds in the recipient's local currency, you will have to incur foreign exchange rates. The foreign exchange rates are subject to fluctuations due to market conditions. To get better rates, you will need to keep an eye on the foreign exchange rates until you find one that best serves your needs. It is a great way to save money while making an international money transfer online.
Ignoring the transfer norms
Whether you are sending money abroad online or through a financial institution, each service provider has certain norms that you will need to carefully read. The transfer norms include transfer limit, processing time, etc. You will need to carefully read the rules and regulations of your service provider before sending money abroad. This way, you will find out how much you can send in one time, the total number of transactions permitted in a year, and whether the payout can be made in cash or cheque.