Money is substantial; it’s a means to an end. While spending money, we often think about how we can spend it in the most optimal way possible. Fortunately, we don’t need to go to traditional banks or post offices to transfer funds anymore. In a world where time is money, the market has demanded (and received) the best money transfer services for themselves that are fast, secure and cost-efficient.
Thanks to the digitization of banks and financial services, many varied routes have opened up to transfer money locally or internationally. Even just a few years ago, sending money abroad was obscenely expensive and time-consuming! Now it has become cheaper and quicker, and with that, there is immense competition between financial service providers for sending remittances. Many money transfer services nationally and internationally try to keep their customers satisfied with the best rates so that other companies don’t take away their customers.
As a customer, there are so many money transfer services available. If these options confuse you, you can look into the checklist provided below for choosing the best money transfer service provider for yourself!
Checklist for Choosing the best money transfer service
Here are some points to look for in our checklist.
- Transfer fees
The most crucial point to look for when choosing a wire-transfer service. As a sender, you need to look at the rate they are charging for transferring funds. Many foreign exchange services provide lower transaction fees compared to banks. Many companies also have special offers, promotional codes, and deals for new customers. If you want to know more about transaction fees before you plan your next trip abroad, check out this blog on credit card overseas charges.
- Rate of exchange
Another essential factor to keep in mind is exchange rates. These rates keep fluctuating from time to time. So, it would help if you compared the average exchange rates of multiple service providers and selected the best one. Some providers even match the competitive rates of other companies and give offers for the next transaction you make. Always look for such offers. Some offers are applicable for shopping discounts, too.
Many service providers send notifications about changing exchange rates. So you can decide which provider is giving you the lowest exchange rate and send money at the right time.
- Mid-market rates
If you’re wondering why there is no fixed exchange rate between money transfer services, the mid-market rates are the reason for that. This rate is the midpoint between buying and selling rates of two currencies at a particular time on the market. The mid-market rate is essentially the ‘fairest’ exchange rate you can get, as it is set naturally by market movements.
Institutions usually set their sell rates above this point and buy rates below this point which essentially amount to hidden profits for them. As the buying and selling rates constantly change based on the demand and supply of every currency, so do exchange rates. So, it is essential to look for the provider with their exchange rate closest to the mid-market range to save money while transferring.
- Hidden fees
Sometimes banks and providers have a higher exchange rate for transferring money during the holidays. Be it Christmas, Diwali, or Eid, sending money on holidays will cost you a much higher exchange rate than non-festive days. To avoid this hidden fee, you should avoid sending money on holidays. You can check your transfer statements over a period of time or enquire with your service provider directly to see if they are charging you hidden fees too.
- Transfer limits
Another point to keep in mind is checking transfer limits for your chosen money transfer service provider. By doing so, you can decide whether your money transfer is cost-effective or not. Some companies might also waive off transaction fees if you transfer a large amount of money through them.
- Payment options
Most senders prefer sending money through online fund transfers from their banks. Especially with the Covid-19 pandemic, it is essential to leverage virtual money transfers as much as possible. Nonetheless, if you want to send money via a cash deposit, cheque or demand draft, you should check if the transfer service has this option available.
- Options for collecting payments
If you are sending money to a receiver, who doesn’t have a bank account, in this case, you can select a transfer service that can make these funds available to the receiver in cash. Always check with your bank or service provider for options of collecting money in the form of demand drafts or cheques in case you need them.
Your service provider should always comply with the rules and regulations of the countries in which they operate. They also have to meet Electronic Fund Transfer Act (EFTA) standards and other protocols for security against money laundering, deceptive marketing, and other such crimes. Make sure your chosen service provider has clearly stated the international and country-specific standards they adhere to and are approved by the financial regulatory bodies of the countries you wish to transfer money between.
- Customer service
Last but not least, customer service is an essential factor that is often overlooked. For example, as a customer, you might face transaction failures due to network issues, and the deduction of your funds could create panic in your mind. These transaction failures are common, but to resolve such problems, you need excellent customer service. A 24×7 customer service that you can access through chat, call, and email should be prioritized in your search for the best money transfer service.
We hope this checklist helps you choose the best money transfer service for making national and international fund transfers. If you want more financial tips and insights, check out Salt’s blogs.