Unlike the big banks, money transfer services offer multiple ways of sending and receiving money. Money transfer services are the best way to transfer money between banks, charging less than the banks themselves. Another benefit to money transfer companies is that they offer multiple ways of sending and receiving money.
Here are some of the ways money transfer companies let you pay for transfers:
- Bank transfer
- Debit/credit card
- Apple Pay
- Cash (in participating third-party stores)
And here are some of the methods for receiving money transfers:
- Direct to bank account
- Cash pickup
- Cash delivery
- Mobile wallet
- Mobile recharge
How to Find the Best Money Transfer Company
Finding the best international money transfer company means doing a little bit of online research.
Reading unbiased reviews is the first step—doing so can help you weed out the scams from the legitimate services.
If you’ve read reviews and are debating between a few well-reviewed companies, you can then focus in on what’s important to you:
Rates and fees? If this is the deciding factor, you can use fee estimating tools to see which service will offer you the best rates for your transfer needs.
Security? Choose a company that is known for its security features and one that will allow you to sleep well at night.
Fast transfers? If time is of the essence to you, choose the company that offers the fastest transfers.
If one company offers better rates and another offers faster transfers, you can use each one to suit your needs for each particular money transfer. Just because you start out using one company doesn’t mean you can’t switch to a different company or use 2 simultaneously.
Remember, you’re paying for the service, so you deserve to get the most out of it.
Money Transfer Fees and Rates (What is the Cheapest Way to Send Money?)
Money transfers comprise 2 types of fees: a flat fee, usually around $1 to $5, and a markup (also known as margin or spread) of 0.3% to 5% of the total transfer amount. Some companies have stopped charging the flat fee and now make their money entirely from the markup. The exact markup is determined by the transfer amount, method of transfer and recipient’s country/currency. When sending from USD to major currencies like euros, pounds sterling, or Canadian dollars, you can expect to pay a markup of less than 1%. When sending to exotic and hard-to-find currencies, you can expect to pay significantly more.
Because of the variation in markups, it’s worth comparing a few providers before going ahead and making a transfer. First, decide which currency pair to transfer, how regularly you plan to transfer the currency pair, and how much you plan to transfer each time. Then, request a quote for your chosen pair/amount from a few of the providers above.
There’s no doubting that money transfer services are the best way to transfer money internationally. With that said, the best way to send money online differs from person to person. We wrote this guide to help inform you about the best money transfer services overall. All that’s left for you to do is request quotes from several providers and find out which is best for moving money to your preferred currency.