Problems encountered when sending money abroad

Billions of dollars per year are sent around the world by foreign workers who send money to countries such as the Philippines, India, Pakistan, Vietnam, Mexico and Indonesia and also transfer large amounts of sums usually quite small to pay allowances, school fees, and to make small purchases online, hence the possible methods for transferring money have also increased substantially.

Sending money abroad to relatives used to be the preserve of banks and a few money transfer companies with offices in major countries. Since the advent of internet banking, sending money home or sending emergency funds to your kids has become a lot easier, but there are real pitfalls to be aware of.

The first thing to consider is the safety of your money, if you choose a major bank or use one of the well-known money transfer companies then you can be pretty sure that at least your money will get through, but this can be expensive. and it is often a slow method of sending money. The fees can easily reach $40 or more on each end and the currency exchange rates they give you can be very low.

So what other options are there?

on. Forex brokers are useful for transferring large amounts and generally quite safe; however, make sure the broker you choose is fully accredited by a financial services agency because their money moves through their accounts and therefore may be at risk. Fees and exchange rates are usually quite reasonable, but transfers can take a few days depending on the banks used and the receiving bank may also charge a fee to clear the funds.

B. Sending a credit or debit card is becoming a popular option. It sounds easy and there are plenty of ATMs around the world to access money, however cards can get lost or stolen in transit. Maybe not as likely if the cards are mailed, but that will cost you a lot. Cards can also have significant fees associated with their use, so be sure to read the fine print and the fee structure any reputable card provider must provide. The currency exchange rates used by these companies can be prohibitive, make sure you know how much you will end up sending and how much it will cost you first.

contra You can send a check issued by a bank or post office, either in local funds or in the currency you need to send if you have that facility. With this method, you’ll at least know how much it will cost before you get the check, but again, checks get lost in the mail and take time to mail.

D. Using one of the new online money transfer organizations like Ezybonds, Xoom or Paypal is the easiest option if you want to send money quickly. There are many other similar companies, but with this type of organization it is imperative that you ensure that your data security is good enough to prevent hacking. With these organizations, you need to open an account, which means you’ll need to provide identification, so check that the company has been around long enough to be well established or is backed by a major parent company to ensure your private data is safe . Once again, check the fees and exchange rates. Be aware that sometimes even though they say there are no fees, there can be a charge of up to 4% of the money you want to send and that can be very expensive.