Have you ever wondered about how international transfer service works behind the screen? Lately, you sure have seen people using various apps such as Cash App and Venmo to transfer money. But they need to be in the same region.
If you want to do international money transfers, you need to use a different app or go the old-school way by using the bank. Sending money abroad is actually a simple process. Yet, many people still don’t grasp the process and get frustrated.
What Is International Transfer Service And How It Works
As the name implies, this transfer means wiring your money to someone in a different country. For example, you’re working in Mexico and want to send money to your family back in Italy.
Of course, you and your family have different bank accounts, therefore transferring money can be a bit tricky. It can be more time-consuming and complicated than a regular money transfer.
First of all, your bank needs to verify the transfer to see if it’s legit and if you have enough funds to send it there. Keep in mind each banking service has different fees applied, including international transfer. Then your bank will contact the recipient bank to notify the incoming transfer before agreeing to send the money.
While these processes sound highly roundabout, they are a necessity. The bank has to be meticulous in ensuring the process goes smoothly.
Regular Bank Transfer vs Using an App
Of course, you can always go to your bank and sending the money directly as if you’re transfering money through ATM. However, the bank is notorious for having a very high exchange rate. You also need to know the IBAN and bank account number.
You can google for the bank’s IBAN. But you won’t know about their account number. Unless of course, this is a family member and you have known them for the rest of your life.
Transfering is a two-way street. Just like you need to know their account number, they may also need yours. In short, sending money through the bank can be dangerous to your personal data.
But when you use an app, you can always use an email to hide your personal information. The app will hide your information, so you don’t have to worry about oversharing your date.
Using an app is also highly convenient since you can do it at home. They also can work faster than the traditional route.
4 Best Apps for Transferring Money
Transferring money across the country is not a new thing to do. People have been doing it for years and only recently, it only gets easier. These apps are the most downloaded and best-rated apps to send and receive money.
1. Wise
In the past decade, Wise has slowly risen up and competed directly with PayPal as a money transfer app. They claim to offer the lowest transfer fee and the most transparent.
You can choose to transfer directly from your linked bank account, or credit card, or even top up your Wise Wallet before transferring. Another good thing about Wise is its transparency. You can see their fees and other charges.
2. PayPal
Having been in the industry for decades, PayPal has become synonymous with the easiest way to send money. It works in more than 200 countries and you just need to have a PayPal account. You also can link your credit card directly to the account.
They support dozens of currencies and you can exchange the money before the transfer. However, their rate is notoriously low compared to the other app and some users are complaining about the multiple fees. But on the bright side, the recipient can see the money in their account within minutes.
PayPal doesn’t limit the amount you can withdraw to your bank account. But if the amount is lower than their minimum limit, they will incur a transfer fee. They also limit how much you can send based on your account status.
3. Moneygram
You may see some banks put their logo up as one of their services. It means that they’re part of the 400 banks worldwide under the Moneygram network. This app limits how much you can send and receive per month. But they have one of the best rates.
4. Western Union
As one of the oldest money transfer services, Western Union has developed an app to keep up with the latest technology. They may not have the best rate, but they are highly convenient.
You can send money to more than 200 countries with the least fee. The recipients also can cash the money out in a post office or a standalone kiosk.
Remember These 3 Things Before Transferring Money
1. Double Check the Recipient
Even though it sounds trivial, many banks deny a transfer because of this mistake. It’s either a typo, wrong bank account number, or simply mixing the middle and last name.
And if you use an app, make sure the email address is correct. It doesn’t hurt to be cautious by double-checking everything. However, because they use email as a mask, the only thing you can verify is the recipient’s name.
2. Transfer Time
On average, international transfer takes one to three business days. You need to check with the calendar to know when the transfer is complete. In case of holidays, your transfer can be up to 30 days due to the calendar. Therefore, you need to time it accordingly, since it’s not for impatient ones.
3. Fees and Exchange Rate
Doing international transfers means you have to pay attention to the current exchange rate. Each app has a different rate and they may also have various fees.
For example, you can transfer USD to USD with PayPal from everywhere in the world. But they charge a 0.8-1% fee if you’re transferring money from outside of the US.
The same goes if your account is a business account and you’re sending money to a friend. You may need to pay an extra transfer fee because they take it as a payment.
Choosing the best international transfer service app is all about your preferences. However, some of these apps are not available in some countries. So you may need to get an app that will reach them regardless of the fees.