When it comes to sending money overseas, you have several options. You can pay a personal visit to any remittance centre (a location where money can be sent). Money transfer services, for example, are available in supermarkets, convenience stores, drug stores, and as stand-alone businesses such as MoneyGram or Western Union. You can also transfer funds online or with your smartphone. The fees you pay are determined by the location, amount, and type of transfer you choose. You must also consider the impact of the foreign exchange rate.
Method 1 Choosing a Sending Method
1. In person, complete a cash-to-cash transaction. To send money overseas in cash, you can go to a walk-in centre such as Western Union or MoneyGram. Western Union has over 500,000 locations worldwide, while MoneyGram has nearly 350,000 locations. Visit the websites of Western Union and MoneyGram to find a location near you. Money transfer services are also available in supermarkets, convenience stores, drug stores, and Walmart.
Fill out the “Send Money” form, specifying the amount you want to send, how quickly you want the money to arrive, and how you want it delivered to the recipient.
You can have the money delivered to the recipient’s location within minutes or the next day.
Indicate how you want the money to be sent. You can have the money wired to the recipient’s bank account or a mobile wallet account on their smartphone, or you can have the money picked up in cash at a local office.
Bring the form to the counter, and a representative will handle the money transfer. You will be required to present identification, such as a driver’s licence, as well as pay a fee.
The fees vary depending on how much money you are sending, when you want the money delivered, and where you want it delivered.
To fund the transfer and pay the fees, pay in cash. You will pay in your own local currency, and the recipient will receive funds in their location’s local currency.
Obtain a sales receipt as well as a tracking number to give to your recipient. Use the tracking number to ensure that the funds are delivered to the intended recipient.
2. Money can be transferred between bank accounts. You can transfer funds from your bank account to the bank account of your recipient. If the recipient does not have a bank account, you can still fund the money transfer with your own. These transactions can be carried out online using money transfer services such as Western Union or MoneyGram.
For this to work, the recipient does not need to have a bank account. You can transfer funds from your bank account to your recipient, who can then pick up the funds in person at a bank or a money transfer service.
Navigate to the website of the Western Union, MoneyGram, or other money transfer service that you intend to use.
Create a free profile with your email, phone number, home address, and a password.
Select the “Send Money Online Now” option.
Enter the dollar amount you want to send in US currency, as well as the destination address. At the recipient’s location, the website will convert the dollar amount into the local currency amount.
Click on “bank account” under Payment Method and specify how quickly you want the funds deposited into the recipient’s account. The fees vary depending on where you want the transfer to take place and how quickly you want it to take place.
Follow the prompts to enter your account and the recipient’s account and routing numbers.
You will be given a tracking number once you have completed the transaction. Distribute it to the recipient and use it to ensure that the funds are transferred.
Another option is to use your bank to transfer the funds. Many banks offer account-to-account transfers or money-wiring services that can be used across multiple banks.
3. Make use of a debit or credit card. A debit or credit card can be used to fund a money transfer in person or online. If you go to the money transfer office in person, fill out the paperwork there and pay for the transaction with your credit or debit card. Similarly, when making an online money transfer, select “credit card” or “debit card” when entering payment information.
Credit card purchases can be more expensive than cash purchases. You may be charged a fee by the money transfer office for using a credit card. In addition, your credit card company may treat the transaction as a cash advance, charging you a fee and a higher interest rate.
4. Send money using a prepaid debit card. A prepaid debit card can be used to send money. The card can be used to make purchases or withdraw cash by the recipient. From the United States, you can replenish the card with cash, a credit or debit card, or your checking account.
The fees for this service can be prohibitively expensive. You should budget for activation fees, monthly fees, inactivity fees, and transaction fees.
5. Use your smartphone to access a money transfer service. Log in to a money transfer service using your smartphone’s browser. The procedure is similar to that of using an internet-connected computer. However, using an app on your smartphone provides some additional benefits.
You can, for example, download a free Paypal app that allows you to text funds to a recipient’s phone or email account.
Western Union has a smart phone service that allows you to send money to people who have mobile phone wallets. In the destination country, the recipient must have a mobile wallet and a cooperating mobile phone service.
One disadvantage of this method is the inability or difficulty of converting this payment to physical currency on the other end, so it is generally useful if the recipient does not require cash.
Method 2 Determining the Cost
1. Calculate the effect of the exchange rate. The exchange rate is the amount of foreign currency you can buy with one US dollar. For example, you might be able to buy 0.89 euros, 17.31 Mexican pesos, or 6.47 Chinese yuan for every US dollar. Currency exchange rates differ from country to country and are constantly changing. Money transfer services are required to inform you of the exchange rate you are receiving. Because different services may use different exchange rates, shop around for the best deal. Instead of an estimated rate, try to get a guaranteed rate. This way, you’ll know exactly how much you’ll have to spend.
2. Find out about the fees. Transfer fees vary depending on the amount of money sent and the country to which it is sent. The amount of the fees is also determined by how quickly you want the money to arrive. For example, same-day service is more expensive than a transfer that takes a few days. Furthermore, the fees for online and walk-in services differ. Finally, depending on how you fund the transaction, you pay different fees.
Many money transfer services provide online cost estimator calculators that allow you to estimate the cost of the transfer. You enter the amount you want to send, the destination country, how you want the money to arrive, and when you want it to arrive. The calculator will then tell you how much the fees will be.
3. Calculate your total cost and the amount of money delivered. Your total out-of-pocket cost includes the money you send as well as the fees. The total amount of currency delivered to your recipient is determined by the exchange rate. This can be calculated by multiplying the amount of US dollars sent by the exchange rate.
Assume you want to send $200 from the United States to Mexico. The fees will range between $8 and $24, depending on whether the funds are sent immediately, overnight, or within a few days. Your out-of-pocket expense will be $200, in addition to the fee.
The amount your recipient receives is determined by the exchange rate. Assume the dollar-to-Mexican-peso exchange rate is 17.33. Multiply this by $200 to get the amount in pesos for the recipient. So, $200 multiplied by 17.33 equals 3,466. The recipient will be given 3,466 pesos.
Method 3 Completing the Transaction
1. Check the contact information of the recipient. Check that you have the recipient’s correct contact information. Check that you are using the correct name on the transfer documentation. To claim the money you sent, the recipient will need to show identification. The name on the transfer documentation must be identical to the name on the recipient’s identification. If this is not done, the recipient may be unable to receive the funds.
The recipient, for example, may go by a shortened version of his name, such as Bill or Will. However, his identification may bear the name William.
2. Examine the order completion or receipt page. Check for any mistakes. Check, for example, that the recipient’s name is correct. Also, double-check that the address is correct. If any of these details are incorrect, the recipient will be unable to claim the funds. If you discover any errors, have them corrected before leaving the store.
3. Provide pertinent information to the recipient. Inform the recipient of the exact amount of money that has been wired to them. Give the transaction number to the recipient. Also, make sure the recipient understands what they need to bring in order to claim the funds. In order to receive the funds, proper identification that matches the name on the wire transfer is required.
4. Check to see if the funds arrived on time. Check that the money was delivered on time and in the correct amount to the recipient. If there is an issue, ensure that the recipient is aware of the correct pick-up location and has the correct transaction number. You can also contact the money transfer service to find out why the funds did not arrive.
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