Today there are more methods than ever for converting and transferring money to a designated recipient overseas.
Companies such as Remitly make it as easy as possible. Simply set up an account online, and you’re really all set to “safely send money online to banks and cash pickup locations.”
That being said, that doesn’t mean that it’s not possible to make mistakes when transferring money internationally, and those mistakes are what we are going to talk about today.
Here are the top four mistakes that you will need to avoid when transferring money internationally:
Mistake #1 – You Don’t Compare Your Options
The first mistake you can mistake is to not go over your different options. From bank wire transfers to remittance services to e-payments, your list of options is rather extensive.
But you also want to make sure that you compare your different providers once you choose an option as well. For example, if you do end up choosing to go the remittance service route, you better compare the different remittance services that you can use, because the fees can vary significantly between them.
Mistake #2 – You Get The Account Details Incorrect
This is perhaps one of the more obvious mistakes you can make, but it bears repeating. To make an international wire transfer, you’re going to need the name of the recipient in addition to bank account and routing numbers.
If you get just one digit off in the routing or account number, or a letter in the name of the recipient, it’s going to screw everything up and chaos can be created from that. Make sure that you get your information right and double check before you send anything.
Mistake #3 – You Forget To Convert Your Money Into The Foreign Currency
If you fail to convert your US dollars into the foreign currency of your recipient, then one of two things will happen.
The first thing that might happen is the transfer will simply be rejected, which is harmless because you can easily correct it.
But the second thing that might happen is the transfer will be accepted, only the foreign bank is going to convert the money for a higher fee and at a higher exchange rate, which will cost you money.
Mistake #4 – You Think You’ll Only Have To Pay A Fee
You will almost always have to pay a fee to send money internationally, whether it be a flat fee or a percentage. But you’re also going to have to pay a small percentage of the exchange rate as well (such as 3%), and the exchange rate is always fluctuating on a never ending basis. Research both the fees and the exchange rates margin of your transfer service before you proceed.
Mistakes To Avoid When Transferring Money Internationally
Not only are there more options for transferring money internationally these days, it’s much easier than ever before too. Just be sure to avoid each of the mistakes that we have covered today in this article, and you’ll be set.