If you have ever sent money to your family or friends then you know how easy it can be. With all of the online services and apps available, it has even become quite easy to send money to international destinations, too.
When it comes to time and cost, it can vary depending on where the recipient is located at. Because of this little setback, we’ve gathered a few of the best choices where you can take advantage of sending money internationally.
A Financial Institution
Many, if not all, financial institutions have some sort of wire service for sending money internationally. The downside though, is that their fees can seem a little expensive as compared to many online money transfer service providers. The main reason? Exchange rate markup. Also, banks are typically used just for transferring funds between accounts held by the same bank or accounts held at different banks held by the same individual. Regardless of the fees, this way can be a good way if you need to transfer a large amount of cash.
Upside
• Reliable and high amount of security involved.
• A large amount of money can be sent securely
Downside
• A wire transfer can be time-consuming
• High fees
• The exchange rate is marked up
Western Union
Although Western Union has been around for a long time and is known internationally for sending money, they have been able to remain competitive. With Western Union, you have many options to send money including the use of their app, through their website, or you can transfer money in person globally.
If you are in need of sending $5k or more, then using their website will be the way to go. The nice thing is that you have the option of using a debit/credit card or cash for sending money. You also have the option of sending it to a designated bank account or they can visit any Western Union to pick up their funds.
Upside
• Flexibility in their options to deliver
• Secure
• Fees are low
• Markup of the exchange rate is small
Downside
• Delivery can take 5 business days
PayPal
PayPal allows you to easily send money to other PayPal users with a bank account or credit/debit card that you have attached to your PayPal. If you opt to use a credit card to fund a PayPal account may cause your issuer to charge a fee. If you use your bank account then you will be subject to fees incurred by PayPal, which will differ based on the country that is receiving the money. To be clear on the fees, you should check with both PayPal and your card issuer before using this method.
Upside
• Relatively easy and quick
• Fees are low and dependent on the amount
Downside
• Money recipient must have a PayPal account
• Cash amount may have restrictions
TransferWise
TransferWise is based in the U.K and provides international money transfer and uses the current exchange rate for the receiving country with no markup. They only require a small fee to send and your money is sent to the recipient’s bank, usually in less than five days.
Upside
• Pricing is straightforward
• Mobile and online platforms are easy to use
Downside
• Takes a few days to receive money
• Daily limit of $50k for transfer of personal funds and an annual limit of $250k
OFX
OFX is an Australian money transfer service that operates on a global scale. OFX operates opposite of TransferWise in which they take a small slice from the exchange rate but allow for no additional fees which are perfect for sending large amounts of cash. Another plus is that the amount of the rate charged is determined by the number of times that you use OFX. So keep this in mind if you plan to make international transfers frequently as you could save money each time you use them.
Upside
• Mobile and online platforms are easy to navigate
• Transfer limit has no maximum
• Some countries have same-day service
Downside
• Transfer amount has a $150.00 minimum
As you see, you have many options available for your international money transferring needs. The important things to keep in mind are the different fees associated with the method that you want to use for sending money.