With an increasing number of people purchasing items online from overseas sellers and producing work for international clients and companies, knowing how to make an international payment is becoming increasingly important. Making international payments has become easier as the Internet and international trade have expanded, thanks to improved bank services as well as the services of companies such as Money Gram, Western Union, and PayPal. If you need to send money to someone or a company in another country, follow the steps below to learn how to make an international payment.
1. Calculate the value of your international payment.
When paying for goods, keep in mind whether you need to include shipping costs in the total, as well as who is responsible for the costs of the international money transaction.
If you are paying for services, contact the service provider to determine who will bear the costs of the international payment.
2. Inquire about international payments through your bank, PayPal, Money Gram, or Western Union, and determine which method is best for you.
Many banks will allow you to make an international payment for a fee, but some will not allow you to do so at all. If your bank does allow international payments, find out if you can do so online. If not, inquire whether you should contact customer service or visit your nearest branch. Inquire about service fees and how long the transfer will take. You could also use the services of a foreign exchange brokerage that specialises in international transfers.
PayPal provides instant transactions to many countries for a 2.9 percent transaction fee. To open an account, all you need is an email address and a verified PayPal account, which means your bank information has been approved. If the recipient does not have a PayPal account, he will receive an email with instructions on how to transfer the funds to his account. There is a $10,000 per transfer limit for those with verified accounts, but there is no total transfer limit. Payments can be made through PayPal using a verified account; however, funds typically take 3 to 4 days to clear the account. Credit card transfers are immediately credited to the PayPal account.
Money Gram and Western Union both allow you to send money from a nearby location to any country on the planet. You can pay with cash, a debit card, or a credit card. Before completing the transaction, you can calculate the transfer fees on their websites. Transfer fees range from 8% to 12%. Exchange rates fluctuate and are determined by current daily exchange rates. To get the best exchange rates, keep an eye on the daily exchange rates until you find one that you like. However, if you need to make a payment right away, this will not be possible.
3. Select the international payment method that is most convenient for both you and the recipient.
Take into account transaction time and costs, as well as the proximity of a pick-up location, if applicable.
You’ll need the recipient’s name, address, bank account number, international banking number, and routing number for bank transactions.
To send money via PayPal, you’ll need the recipient’s email address.
You’ll need the recipient’s legal name for Money Gram and Western Union. You will also be given the opportunity to ask a security question. As long as the recipient can provide identification and, if necessary, answer the security question, the money can be collected within minutes.
4. Make the international payment and notify the recipient that it will be delivered within the time frame specified.
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