The process of sending money internationally has become relatively easy in the past few years. For one, many online-only companies have come up to solve some of the previous challenges like hidden fees and delays. Many people are still overpaying and falling prey to scams. In this article, we will look at some of the most popular pitfalls to avoid when sending money internationally.
Not comparing prices
A common mistake that people make when sending money is not comparing prices. As a result, they tend to pay substantially higher fees to companies of their choice, especially when they are sending a lot of money. We recommend that you take time to review all charges that your transfer will cost and compare them with that of other providers. Fortunately, you can use a money transfer comparison company to check charges from multiple customers at once.
Not verifying the link
Ransomware has become a major issue of our time. In 2020, hackers managed to get into systems of companies like Colonial Pipeline and JBS. All these attacks were made by an insider who clicked a link sent by the hackers. Similarly, many people have been hacked by clicking a link sent by a company they believe is genuine. To avoid this, we recommend that you be careful about the links you click. Also, when possible, download a mobile app from the company.
Ignoring foreign exchange
At times, many people who are sending money internationally are drawn to companies that market their cheap options. Indeed, a simple Google search of the term money transfer shows many companies that are promoting their cheap products. Others offer this service for free. However, in reality, some of these companies make their money through foreign exchange arbitrage. For example, if the exchange rate between the US dollar and Japanese yen is 110, they will charge you 95. As such, the difference between the two currencies is their fees.
Many money transfer companies market their products for having a fast delivery time. This is simply because anyone sending money wants the funds to arrive as soon as possible. Therefore, you should avoid the mistake of not checking the delivery time of the transfer. Fortunately, many new companies have a feature where they show you the overall speed of the transaction. As such, taking time to compare these factors can help you save money.
Options to save cost
Some companies have options that can help you save money. For example, a company like Wise charges more money when you are sending funds from your credit and debit card. It also charges more fees when you are doing a wire transfer compared to a bank debit. Also, some firms charge more money depending on the speed of the transaction. For example, some companies will charge you more money if you want the funds to arrive sooner. You should check these and compare your options.
Sending to the wrong recipient
Customers sending money to the wrong recipient is a common issue faced when transferring funds. For example, when you are sending funds to a person’s mobile phone, it is common to miss a number. Similarly, you could miss a single digit when you are sending funds to a person’s bank account. You can solve this problem by seeking clarification from the recipient before you send the money to them. You should also double-check the information you feed to the system before you send it.
The process of sending money internationally has become relatively easy these days. Yet, many people are making costly mistakes. While we have looked at some of the most common pitfalls, there are others we have not mentioned like failing to check limits and not reading the fine print.