Saving When You Send Money Overseas
There are many different ways to send money overseas. One well known option is the Western Union Money Transfer service. It is an example of the popular Cash Collection type of service, where the sender pays cash over the counter and the recipient abroad collects the money over the counter soon afterwards.
Another sending money overseas is through currency exchange. For example, you can sell Bitcoin for Paypal to get funds quickly to your loved one’s Paypal account.
While the Cash Collection type of service has many advantages, it is usually the most expensive method.
If you choose a method of sending money overseas carefully, you may make considerable savings. However, there is more to making the right choice than just getting the best exchange rate, or lowest fee. Factors such as availability, ease of use, security, speed of delivery, means of delivery, choice of currencies, set-up lead time, and sending and receiving limits are often just as important. Such factors should be considered when you want to engage in any transaction, even if you want to exchange PayPal to Perfect Money.
Important Terminology You Should Know
“Official” Exchange Rates
People often use the ”officially” published exchange rates in newspapers, etc., as their reference point for comparing offers from money transfer service providers. However, those rates are normally the average buying and selling rates between banks (interbank rates), for transactions that may involve one million US dollars and more, and are not usually the rates that apply to person to person money transfers.
Exchange Rates And Service Fees Comparisons That Are Relevant To You
Our recommended method for comparing exchange rates and fees appears below. It is based on the simple idea of comparing quotes obtained from one well known service provider, and using those quotes as a point of reference for comparing service providers and methods.
We chose the Western Union Money Transfer service as the recommended source of reference point quotes, as it is easily accessible in most countries.
Western Union and similar service providers’ fees are usually calculated in sliding scales, or in steps. So, we suggest that you ask for separate quotes for (1) the smallest, (2) the average, and (3) the largest, amounts of money that you will be likely to be sending overseas.
- Make a note of the 3 money amounts (smallest, average, and largest).
- Call the Western Union Money Transfer information number for your region, or country*. (You should find it in your local telephone directory. The phone call is usually either free or charged at local call rates.) (*If you will be sending money abroad from the USA, first try Western Union’s online “Price It” calculator on this Western Union Money Transfer page. The calculator works for many, but not all countries, to which you may wish to send money from the USA.)
- Tell the customer service consultant each money amount, and to which country you want to send it, and ask to be told the separate service fees and exchange rate for sending each amount, not just the lump sum charges to send money overseas.
- Write down those quotes, and compare them with the rates from other service providers.
Does The Sender Or Recipient Need To Have A Bank Account, Use The Internet, Or Provide IdD
About half of the methods of sending money abroad require that the sender and / or the recipient have a bank account and / or use the internet.
Senders and recipients need to supply proof of their identity in order to send and receive money to or from overseas. The manner in which a person’s ID is verified can vary depending on the laws of the countries involved, the amounts being sent, if the transaction is conducted in person or online, etc.
Usually, if a recipient or sender has an account with a bank, credit union, or other money transfer service provider, he / she only has to provide detailed proof of identity when opening the account. We recommend that senders and recipients check what the ID requirements may be before deciding to use any method. Those enquiries should be made directly with the service providers. Usually the service providers’ web sites contain details of what ID is required.
Important Tip When Accessing Accounts Overseas
People often access and / or use their bank accounts or PayPal accounts, etc, online or on the telephone, when they are overseas. Similarly, they sometimes use their ATM / Debit / Cash cards when they are overseas. It is advisable to inform the bank, or other service provider before going overseas, that you may be accessing or using your account, or using the card they issued to you, while you abroad.
The reason for doing so is the fact that some banks and other service providers use security systems that may freeze your account if it is being used or accessed in a different country to the one indicated on their records as being the one in which you live. Once you have advised them, they should then make an adjustment to their security system which will prevent the freezing of your account while you are abroad.
Often banks and other service providers don’t advise you if they use this type of security measure or not, so it’s better to be safe than sorry. This is especially true where service providers don’t have systems in place which allow for the quick verification and unfreezing of accounts, particularly while you are overseas.