Introduction
Nowadays, it’s common to see someone send or receive money from abroad. One reason for this is globalization’s continuous rise, which facilitates opportunities for travel, business, education, and employment in other countries. As a result, the number of people who need to transfer money overseas keeps growing.
To help you look for the best options for international money transfers, we’ve listed the various factors to consider when sending funds overseas in this article.
Reasons People Transfer Money Overseas
People have different reasons for transferring money to another country. Below are examples of typical reasons why someone would need to send money abroad:
To Help Relatives in the Philippines
Overseas Filipino workers (OFWs) account for a vast number of the money remittances to the Philippines. Many Filipinos decide to work abroad to seek better career opportunities, so they can improve the lives of the family members they left behind. Thus, many are employed worldwide as domestic helpers, construction workers, and medical workers, to name some.
To Send Allowance to Your Loved Ones
Some people frequently conduct international money transfers to support their children or relatives who study abroad. They send allowance for their loved ones’ accommodation, tuition fees, and other miscellaneous needs.
To Buy Property in Another Country
Another reason for overseas cash transfers is to pay for a property purchased abroad. Some people invest in international properties to profit from them by renting them out as typical housing units or as holiday accommodations. Others buy land in another country to retire in.
To Pay for Overseas Travel
Traveling to a new place is another common reason why people forward money overseas. This is so they can pay for accommodations and other travel expenses in the local currency.
Factors To Consider When Sending Money Internationally
With the variety of options available to send money, how do you choose the best international money transfer service? You can do this by learning the factors to consider when sending funds, such as:
Amount To Be Transferred
The amount to be transferred is one of the most crucial factors to consider. This is because transfer service providers usually price their transfer fees depending on the amount of money the person wishes to send. In other words, expect higher costs for larger amounts of cash.
In addition, some service providers impose restrictions on the amount of funds one can transfer overseas, so inquire about these details if you’re sending a substantial sum of money.
Exchange Rate
Even just a tiny difference in the exchange rate could make a significant impact on the amount of money to be received by the recipient, especially if the money sent is a huge amount.
To get the best exchange rate, you should first learn online the latest exchange rate of the currencies involved in your money transfer. Then, check different transfer service providers to see who offers the exchange rate nearest to the current rate you found online. This is because the exchange rate is not fixed among money transfer service providers.
Transfer Fees
Ideally, it would be great to send money internationally for free, but money transfer services usually come with fees, especially when it comes to overseas transfers.
Transfer fees are determined by different factors. As mentioned earlier, the amount of money you wish to send is one. They also differ depending on the speed of delivery. If the transfer service offers a “fast delivery” option, that would mean higher transfer fees. Moreover, some transfer companies also charge a receiving fee, meaning the recipient must pay to receive the money sent to them.
It’s important to note that transfer fees aren’t just the only factor you should consider when looking for the cheapest way to transfer money abroad. When choosing service providers, calculate both their transfer fees and the exchange rate they follow. Some may offer a lower transfer fee, but their service may not be worth it if the exchange rate they follow is far lower than what other companies offer.
Transfer Speed
Make sure you don’t forget to ask about the expected time of arrival of your money.
Knowing the transfer speed is crucial if you’re making an international cash transfer for an emergency. It is recommended that you only pay extra for the fastest delivery method for these situations to help you save money.
Furthermore, it’s important that you’re aware of any events, such as bank, local, and religious holidays that may delay your money’s arrival to its intended recipients. This is so you can correctly time your overseas transfers.
Security of Transfer Service
Security should always be a top concern regarding money transactions. Some ways you can determine the security of the transfer service you’re using include the following:
- Make sure your transfer service company is regulated by governing authorities, particularly the Bangko Sentral ng Pilipinas. A prime example would be Cebuana Lhuillier.
- For online transfers, check if the platform you’re using implements security measures, such as two-factor authentication.
- See if they have reliable customer services you can contact in case of problems.
- Choose only trusted and reputable money transfer companies by researching online reviews and asking others who have experienced their services.
- Beware of scams. Don’t fall for promises of very little to zero transfer fees or “quick and easy” transfer methods.
Convenience of Transfer Service
Convenience is a factor that should not be disregarded, especially if you send money regularly. Ask yourself these questions to gauge the convenience of a transfer service:
- Do they have multiple branches? For instance, Cebuana Lhuillier has over 3,000+ branches you can visit to make domestic or international transfers, as well as select 20,000+ authorized agents in the Philippines.
- Do they provide an online option to send or receive money? With the e-Cebuana app, senders can direct the money they send to the app, so their recipients no longer have to leave their houses to get the money.
- Are the requirements (e.g., valid IDs, documents, etc.) for sending or receiving cash easy to procure? For Cebuana Lhuillier, we just need you to provide one valid ID as well as accomplish a form we’ll provide you with.
Conclusion
Being aware of the various factors to consider when sending cash abroad helps ensure you choose the best international money transfer service for your needs and preferences.
With Cebuana’s Pera Padala service, you can be confident that your money will reach your intended recipients. We offer one of the safest and fastest ways to transfer money internationally via our numerous branches and international remittance partners.
If you wish to learn more about how we can help you forward money to your loved ones, don’t hesitate to contact us today!