The Cheapest Ways To Send Money Overseas
Sending money overseas was traditionally something that could only be achieved through an international wire transfer. Banks would facilitate payments and transactions across border, for a comparatively expensive fee. The process could take a number of days from start to finish, and required direct communication with the bank – either in person or over the phone. The Internet age made it possible to transfer money more directly, and on a lower cost basis. As the move toward mobile continues to gather momentum, this trend toward more efficient, lower cost transactions will continue to pick up pace.
Today, the options for sending money overseas are more numerous and varied than before. Online payment processors are one option that has helped bridge this gap. Transfers from one online payment account to another are instant, and the recipient can then request a withdrawal of their funds. These withdrawals usually now take place on the same day, but they come with their own costs attached that account holders have to bear. Unlike international bank transfers, where the cost of the transaction is paid upfront by the sender, or can be split between both parties, these services saw the costs of transactions being borne by the recipient.
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Of course, there are disadvantages with this type of approach. Both parties need to have an online account or e-wallet in place in order to send and receive money. This is a process that can take time to set up, particularly given the international regulation surrounding money laundering and fraud. These verification steps, and the need for both parties to have accounts, introduce layers of friction that make this a less convenient approach. Further, the costs of these services remain high, often charged as a percentage of the total transaction size being sent.
Residents in some territories are also unable to sign up for certain online payment services. This can make it challenging for those sending payments to specific countries that are not supported by these online payment mechanisms.
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Nevertheless, payments of this type have been regarded as being cheaper than more traditional methods. But there is now another alternative that is being increasingly used to transact cross-border. International payment services like Trans-Fast Remittance LLC allow money transfers to take place quickly and cost-effectively, either online or through a physical agent. Those transferring money can choose to send cash, or to send direct to the recipient’s bank account, introducing greater flexibility into the mix. When factoring in the reduced costs of these types of services, it becomes clear that this should be a preference for those sending money across international borders for whatever reason.
Whether it is for business or personal reasons, sending money overseas does not have to be as costly or as time-consuming as was once the case. As mobile technologies continue to gain traction, it now looks to be a matter of time before the process is even easier still for the majority of those sending money overseas. Aside from making life easier for those sending money in this way on a regular basis, this will also serve to further reduce transaction costs in the process.
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