How To Send Money Overseas

by Calyn Ehid

Globalization and liberalization have brought the world closer. Also, the advent of the web has eased things further. Now you can do business with individuals and firms located in other parts of the world. Although it is far easier to carry out your business chores, certain things act as hurdles in global business, and remittance of money is a major issue. The currency of each country varies from the other. While dollars and pounds are usually accepted forms of remittances, you need to take a look at various options to send money overseas.

Use banks to transfer money

If you have a bank account in a foreign country and wish to send money to a recipient in the United States, you can write a check in your local currency and post the check. The receiver will then cash the check at a bank in US. However, there are certain obstacles in the name of rules and regulations with respect to sending checks in local currencies. Firstly, the recipient’s bank will not cash the check unless the check is payable through a bank in the US. Secondly, the recipient will have to bear high charges for processing the check and the exchange rate.

It is easy to avoid these issues through a wire transfer. You may go to the bank and request a wire transfer. It is an electronic transfer of funds from one financial institution to another. However, you should find out whether the recipient’s bank accepts wire transfers in foreign currencies. If not, you have to wire the money in international currencies such as the US dollar.

Use remittance services to send money

Remittance services such as Moneygram, PayPal and Western Union are great ways to send money overseas. You can either visit their physical office or initiate a wire transfer online. It is easy to fund the transfer with cash or debit cards. The best thing about remittance services is there is no need to worry about the currency of the recipient country. You pay in your currency and the receiver gets the money in his local currency. Also, compared to banks, remittance services charge a low fee for sending money.

Foreign exchange services

These services complete international transfers to individuals as well as businesses. Their transaction volumes are really high, but they charge minimal rates. They do not charge any fee but make money through the exchange rate. Usually, money is transferred within one to two business days. However, foreign exchange services should be used for large transactions only. For smaller transactions, people usually prefer remittance services.

The global business offers immense opportunities for buying, selling, trading, and other related chores. However, business warrants sending and receiving money to and from other countries.  You have to make timely payments to keep your business associates happy. Also, on-time payments boost your reputation in this competitive era. Just check out easy ways to send money overseas as listed above. With timely and hassle-free payment options, you can run your venture smoothly and stay abreast of times.