Sending money overseas – what you need to know

transfer-moneyMany people live in one country but take a job in another country. International money transfers allow these folks to send money to loved ones back home as well as make overseas payments. You can make an international money transfer either through a bank or a wire transfer company.

Like other financial transactions, sending money overseas will cost you a bit extra in fees. Use the financial tools available to help you compare money transfer providers at MoneySupermarket.

  • The International Money Transfer Process

Bank wire transfers are commonly used to electronically move funds from one bank account to another. This process is pretty simple once you have all of the required information.

All wire transfers involve a sending party and a receiving party. The sending party is required to have the recipient’s bank name and address, the receiving party’s bank account number and either an International Bank Account Number (IBAN) or a Bank Identifier Code (BIC) to get the funds to the correct receiving party.

Once you give the sending bank all of this information, it will send a message to the receiving facility using the Society for Worldwide Interbank Financial Telecommunication (SWIFT) telling them to release the transferred funds to the receiving party.

Bear in mind that although international money transfers are fast, the funds typically don’t appear in the recipient’s bank account instantaneously. It can take several hours or several days for the process to be completed.

However, once your overseas payment arrives in the receiving account as “cleared funds,” the receiving party has immediate access to the transferred money. The receiving party has to confirm that they received the bank wire transfer.

  • Online International Money Transfers

Some wire transfer companies offer the convenient option of sending the transfer online. In order to use an online service, you will need to sign up for an account with the company. Once you have established an account, you will be able to send money internationally.

Keep in mind that the receiving party will still have to go into the receiving facility and pick up the money in person. In addition, the amount of money you can transfer online is limited by law to help prevent fraud and money laundering schemes.

  • Fees

Banks and money transfer companies have the legal right to charge a fee for their services. The amount of the service fee varies according to the facility. Banks usually collect payment for the transfer service from both the sending party and the receiving party.

The sending facility usually collects a fee separate from the funds that are being transferred, while the receiving facility deducts their fees from the funds being transferred. This means that the receiving party will receive a lower amount than what the sending party actually transferred.

  • International Wire Transfer Tips

Before calling your bank to start the wire transfer process, be sure that you receive wire transfer instructions from the bank that will be receiving the funds. Contact the receiving bank’s account manager or the person who handles any wire transfers and tell this person how much you plan to transfer and into which account.

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