Do you want to send money abroad but do not want to deal with the expensive fees? Here is a list of tips that you can try out to reduce remittance prices.
Wire Transfers
Wire transfers are an example of popular payment methods for remittance. You can use a money transfer service provider like citpay.co.uk or your bank to send a wire transfer. However, the actual fees will depend on the bank or your provider, along with how much you want to send. However, wire transfers make it safe for both banks involved in the payment transaction, so the fees may be worth it.
Bank-to-Bank Transfers
Many banks let you safely send money from one bank account into another. Bank transfers are usually secure payment systems, so you will likely not have to worry about where your money goes. You can do a bank-to-bank transfer in person at your bank, online, or over the phone.
However, the fees for bank transfers can greatly vary. If the person you want to send money to has a bank account in the same bank institution that you will use, there may be a very small fee or it can be free. However, you may have to pay a larger fee if you are sending money from one bank institution to another, especially if it is an international bank transfer.
Prepaid Debit Cards
Some services can send money to prepaid credit cards. The sender may send money (especially if you want to send a big sum of cash) to load the recipient’s prepaid debit card. The recipient can then use the prepaid debit card to withdraw the funds, or even use the debit card to purchase products and services in certain places like a credit card. However, you may need to pay a monthly fee or activation fee to use the prepaid debit card.
PayPal
If you want to send small sums of cash, PayPal might be a good choice for you. PayPal can support many currencies, and it can do transfers for more than 100 countries. PayPal may offer better exchange rates than most banks, but it may not be as good as a money transfer company. PayPal usually calculates the fee based on a percentage of how much you want to send, so it would be better to use this for smaller amounts of money.
Bank Drafts and Money Orders
You can buy a money order or a bank draft. Try to buy money orders through a post office branch; they are usually cheaper than the ones you would get from a financial institution. Money orders are good if you want to send a small amount of money, especially since bank drafts are usually more expensive than money orders. It takes longer for the recipient to receive the funds, but it is one of the cheaper ways to send and receive money.
Sending and receiving money does not have to cost you an arm and a leg. You can follow the tips above to reduce remittance prices to economically send and receive cash.