To common users of banking services, money transfers are money transfers. As in, you don’t consider them complex: just a tool to send and receive funds. But then, you face a plethora of terms like bank transfers, wire transfers, electronic payments, online transfers, and so on. And you start to wonder – “is there a difference between all of these?” and “what should I use?”. Well, let’s figure it out together! In this article, Genome will primarily focus on bank transfers and wire transfers and how they differ and compare wire payments to other transfer options as well. Wire transfer:
Sending money online, especially to other countries is a fast and effortless thing in the modern world. You can do it from any computer or smartphone, with dozens of service providers to choose from. However, at what price comes such an excellent service? Most of us know that feeling of anger and disappointment when you have to pay unexpected fees even though you’ve already clarified all charges with the bank/financial provider in advance.
In this Genome blog post, we will talk about the pitfalls of sending money abroad online, as well as how to choose the cheapest financial provider and avoid unnecessary fees.
These transactions are old but gold. International wire transfer companies were the first ones to offer a service of such kind. Of course, nowadays, we have many other options to send funds overseas. Nevertheless, wire transfers are still in place to ensure safe and secure money transactions. This happens via electronic means within the network of connected bank branches in different countries.
Such transactions can often be made on the website. Unfortunately, not all international wire transfer businesses are operating online. This factor is quite important, especially if you need to send funds urgently.
Society for Worldwide Interbank Financial Telecommunication has been operating for almost 50 years now. It’s a vast network of banks and financial institutions, which allows people to send money abroad. The SWIFT system is available in the majority of countries in the world and supports different currencies. For making a SWIFT transfer online you should use mobile or online banking. Don’t forget to double-check all the details you’re providing (such as SWIFT/BIC and IBAN codes, as well as the receiver’s name) so that your transaction reaches the necessary account.
A Single Euro Payments Area was initiated to make international transactions within the EU quick and seamless. These euro transfers can only be sent within the SEPA zone and are delivered the next business day. Moreover, you can even go for the SEPA Instant transaction, where funds will arrive at the account within 10 seconds.
Types of SEPA transfers, fees, and timeframes are all described in the article “What are SEPA transfers and how to make them” in Genome’s blog.
With e-wallets, you can both make quick payments and transfers online. Some e-wallets have advanced functionality and have almost all the features that regular banks have. If you’re sending money overseas to another user of the same e-wallet service provider, the fees are quite insignificant. What’s more, such transfers are usually almost instant.
What are the benefits of money transfers?
All transfer types we’ve discussed above work pretty much the same, have similar fees and timeframes. Of course, there are significant differences which can be quite beneficial depending on where and how much money you’re sending. Let’s have a look at the crucial benefits of money transfers:
Making a bank transfer is much more secure than traveling to move funds or using cash. You can be robbed or forget the cash somewhere, especially when it comes to big amounts. With money transfers, your funds are protected by your financial provider and move only within the system of reliable partners.
Even international transfers usually take only a few working days. In addition, there are ways to send money overseas immediately (for a higher price of course).
You can instruct a transfer online during the day from a smartphone or computer. The only thing needed for this is the Internet. Funds are settled in the recipient’s account within a few days, and they can move them straight away.
Things to consider to find a truly cheap way to send money abroad
First of all, you need to pay attention to transfer fees. This can be a flat fee (stable amount) or some percentage from the transaction’s sum. Some financial providers can also charge receivers when the funds arrive at their account.
Secondly, remember about exchange rates if you’re making a cross-currency transfer. It’s best to make overseas transactions in the same currency (from euro account to euro account) to avoid high conversion.
How much can I send?
The maximum amount of international transfer depends on many factors. For instance, even the type of your account can influence this. You can always check transfer limits with your bank/financial provider.
What details are required to receive an international payment?
This will also vary depending on the transfer type. For instance, for SEPA and SWIFT transactions, you’d need an account to receive these funds. With wire transfers, you may need to come directly to the bank’s branch and provide proof of your identity.
Is sending money abroad safe?
If you’re making international transfers through your bank or PSP, your funds should be protected in case something happens. Remember to check if your financial provider offers any guarantees on this.
But when it comes to e-wallets and other online international transfer companies, they do not always guarantee reimbursements.
How Genome can help
With Genome, you can make international free and instant transfers in different currencies, using our internal transfers. Open both personal and business wallets in no time and use them straight away. You can send overseas payments online from both these accounts to other Genome users. For this, you’ll only need their phone number or email address.
Genome also has SEPA and SWIFT transfers available, so you can send and receive money to a person/company that doesn’t have an account within Genome.
Frequently asked questions about sending money abroad
How can I send money online internationally?
You can use mobile and online banking services from your financial provider for SWIFT, SEPA, and wire transfers. The same goes for e-wallets service providers.
How do I send money to a foreign bank account?
You can do this with the help of your financial provider by mobile or online banking. Most banks nowadays support numerous types of transfers, including international ones. You can even visit a bank’s branch and order transfers there.
Can you send money internationally for free?
Some e-wallets and PSPs offer free and instant international money transfers in different currencies between their users.
How to send money abroad for free?
Unfortunately, SWIFT and SEPA transfers (the most common ones) are not free and most financial providers have similar fees for such transactions. However, with Genome, you can send money abroad with no charges. If both sender and receiver have accounts with Genome, the transfers between them will be instant and free no matter what currency is used.