Mistakes to avoid while transferring money overseas this Christmas
What you need to know when sending money overseas
It might be difficult for you to fly back to your family this Christmas due to the pandemic and travel restrictions. Nevertheless, you can still send them some Christmas gifts or cash from where you are. Here are some things to keep in mind before you transfer money overseas this holiday season.
3 Things to look out for when making global payments this Holiday
Similar to a courier, the transferring process is not instantaneous. International money transfers take time—between setting up an account and the actual transfer period, you could be waiting 1-5 business days before your money reaches your relatives abroad. Of course, the timing of the money transfer heavily depends on your provider, the types of payment method and the country you are transferring the money to. External factors such as processing fees could also cause slight delays.
Money transfer limit
For many international money transfers (IMT), they have a minimum and maximum transfer limit. This can be a hindrance for you as it could start from as low as S$50 and as high as S$2,014, restraining you from transferring the desired amount. This will then force you to look around for a money transfer provider that allows smaller or bigger transfers, which might take a lot of work. Therefore, before you start sending money overseas, make sure you check if the service provider has any money transfer limit to avoid any last-minute complications.
Bank or IMT?
Transferring money overseas through your local bank is no doubt an easy and convenient option. You are comfortable with large banks handling your money transferring needs and all you have to do is log in to their website to make the transfer. However, it is important to keep in mind that big banks generally charge higher fees and offer poorer exchange rates compared to online money transfer providers.
International Money Transfer (IMT) services usually run entirely online, which means they don’t have to pay for the cost of operations of a bank and its rental fees. Hence, they can charge you much lesser for every transfer you make.
3 Mistakes to avoid when sending money this Christmas
1. Missing the Christmas deadline
As mentioned earlier, transferring money overseas is not an instantaneous process. So, if you are planning to give your sister who resides in Australia her Christmas present during the holidays, you better start setting up your account and do the transactions now. Depending on the recipient's bank, the process would take as little as 1 business day, if you are transferring major currencies, before it reaches the destination. To be safe, you would probably want to have your money sent by the 23rd of December (2 business days before Christmas). Our advice is to not make last-minute transactions as unforeseen circumstances can occur, and you might need to explain to your dear sister why she has yet to receive her Christmas present.
2. Not checking transfer limits
Imagine this, you spend hours upon hours looking for a money transfer provider that can give you the best conversion and fee exchange rate only to realise that they have a minimum or maximum transfer limit. While some money transfer providers have no limits at all, many still have the minimum and maximum transfer amount, ranging from S$251.80 at minimum, to the maximum limit of S$10,072 or S$100,731. Finding a provider who can give you the best exchange rate is great, but keep in mind that every provider has a different minimum and maximum transfer amount. So be sure to check the transfer limit.
3. Not comparing services
All you need to do is to log into your online bank account and transfer the money to your relatives, done and dusted right? Well, not exactly. Convenience comes at a cost, and big banks would always offer higher exchange rates compared to individual IMTs. In other words, you end up paying more. Just like shopping, you would compare the prices of the item you want before finally making the purchase. This also applies to selecting the best money transfer provider.
Looking to transfer money overseas this Christmas? How about using TranSwap? We offer a quick and easy global payment solution at a very low cost. And that means a hassle-free experience for you to send some cash abroad this Christmas! To learn more, send your questions here or visit our website at www.transwap.com.
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