Common things to know before sending money between countries

Online money transfers abroad have never been more simple. But there are still some basic things to know before instructing any international transactions. In today’s blog post, Genome explains all about overseas payments and how to make them. 

International transfer types

Let’s start with a definition. Online money transfers abroad are any transactions between two or more countries. They can be made in one currency or involve currency exchange. There are a few methods of moving funds overseas, and we will discuss all of them further.

• Wire transfers

Wires were first introduced 150 years ago but remain the most widespread method of transferring money online between countries. A wire transfer is a transaction made with the help of electronic means. Nowadays, such payments can be made in numerous ways. For instance, it can be a bank-to-bank online money transfer abroad, or a receiver can come to the branch and pick up cash. Wires remain a flexible and convenient method of sending and accepting funds worldwide. 

The largest network for sending international transfers is SWIFT – Society for Worldwide Interbank Financial Telecommunication. It’s available in almost all countries and supports all major currencies, including USD, GBP, EUR, etc. One more famous network is SEPA – Single Euro Payments Area. However, this one only works within Europe and only in euro currency. 

• Online money transfer services 

These work best for people who, for some reason, are not using traditional bank accounts. Some of the most popular ones are Wise, WorldRemit, and Remitly. With these tools, you can make both transfers to bank accounts and card-to-card payments. For this, you will only need to fill in the necessary details online and start a transaction. Another advantage is that they are usually faster and cheaper than regular wire transfers, especially if you’re sending exotic currencies. 

• eWallets

You’ve probably heard about PayPal or Payoneer. You open an account online and get access to basic banking features, such as transfers, cards, currency exchange, etc. eWallets are great for sending funds among other users of the same service because of lower fees. However, you usually also receive bank account details with an eWallet and can make SWIFT or SEPA transfers, for instance, regardless of the location. 

All the services we’ve mentioned above can be used online – in a mobile banking application or from the website. Therefore, one can initiate online money transfers abroad literally from anywhere.  

Things to remember 

 There are a few critical points to keep in mind for wiring funds internationally:

• Double-check account details
• Have a look at a few providers (compare timeframes, fees, limits)
• Ask for or download the transfer confirmation document
• Initiate transactions beforehand so that money arrives in time in case of any delays

Pricing

International transfer fees are a leading question for many people because depending on the number of intermediary banks involved, the prices for overseas wires can reach even $50. Unfortunately, there’s no one piece of advice on how to deal with high fees. The best decision is to check what financial services providers can offer you. For example, some of them grant five first transfers abroad for free if you open an online account with them. Consequently, it’ll be cheaper to use such a service than sending a regular wire with your brick-and-mortar bank. 

FAQ:

Is sending money to other countries illegal?

Wiring funds overseas is a perfectly safe and legal process. What’s more, financial services providers are constantly improving their solutions and offers so that online money transfers abroad get even faster and easier to do. 

How can I send money from one country to another?

There are a few reliable ways to send and accept funds internationally. First of all, these are bank-to-bank wire transfers. The other options include using eWallets or money transfer services – with the help of the last ones, you can even move money from one bank card to another without using actual bank account details. 

What is the cheapest way to send money internationally?

The fees for transferring money online between countries depend on many factors. One should consider the prices set up by their financial services provider, any possible limitations within their account (for example, the maximum and minimum amounts to transfer money abroad online), and even fees from the receiver’s side (if applicable).