The world has become smaller thanks to the advancement in technology in the fast-paced 21st century. Places have become accessible regardless of their geographical location. From doing business and studying abroad to getting married, several things make people want to make payments overseas. The international money transfer sector facilitates the transfer of funds to foreign nations.
In the US, there are several renowned transfer operators and giant finance companies in the sector, including HSBC bank, Western union, HiFX, and peer to peer firms like Transferwise, which can help transfer money to Mexico and other countries around the world. Here are the most common reasons why people send and receive money across borders
1. Sending Friends or Family
Many people have friends and family living, working, or studying overseas. For this reason, they may need to send gifts and sometimes money. International money transfer provides security and effortless transfer of funds.
2. Planning an Event Like a Wedding
Planning a party like a wedding abroad involves hiring foreign companies, which will require the transfer of funds.
3. Paying International Business Associates
Most people may own or work with companies that operate internationally. With several business transactions happening every day, there would be a need to transfer money across borders.
4. Making Mortgage Payments
International money transfer facilitates the payment of mortgages if you are currently working overseas.
5. Selling or Buying Property
If you are involved in a business deal involving property sales in another country, you would need to transfer vast amounts of money across borders. The best way to achieve this is through international money transfers.
6. Paying Bills
You can use international money payment systems to pay bills such as utility expenses or school fees in another country.
7. Pension Transfers
Individuals on holidays in another country or those who have moved to live in another country use international money transfer systems to access their funds.
8. Salary Transfers
Many people work or live in other countries and would regularly need to send money home through international transfer.
If you are planning to live in another country, you will have to move with your money.
10. Topping Up a Foreign Bank Account
Some people may need to top up a foreign account that is dormant that has run low on funds. The only way to do this is by international transfer.
How to Save On International Money Transfers
When making an international payment, ensure that you get the best deal. When doing an international transfer, the sum may be affected by the exchange rate and fees. Be aware of firms that claim to offer transfers at no cost as they often tamper with the exchange rate to make a profit.
The actual cost of a transfer is usually hidden, so the best way to know if the deal is fair or not is by comparing how much money you receive at the end. Banks are a significantly expensive option but also the most common palace people try. A peer to peer currency exchange or a foreign currency broker is more likely to offer you a better deal.
There are fees charged when transferring money to foreign countries when you are using your bank. The costs can also increase when you consider the exchange rates. It is essential to consider these fees before choosing a transfer method.