So you need to send money overseas to somebody. Maybe you’re supporting a child who is studying overseas. Or maybe a close friend or family member has contact you and is in desperate need of emergency funds. Or maybe you need to pay someone who lives in another country and has done work for you.
Whatever the case, the steps to send money overseas remain the same. Assuming you need to send the money quickly, you would be wise to avoid sending the money with a bank wire transfer and instead choose a third party money transfer service such as Remitly.
Here are the five steps you will need to follow in order to send money overseas:
Step #1 – Create An Account
The first step is the most simple: you just need to create an account with the money transfer service you’ll be using. You can either do this online or in-person.
The information you will need to create an account will include your first and last name, your physical address, your birthdate, and possible your social security number and/or taxpayer identification number depending on the service you’ll be using.
Step #2 – Gather Details
Once you’ve created an account, you’ll need to gather critical details before you can officially make a transaction.
Specifically, you’ll need to gather your bank account number, your routing number, the name of your recipient, the bank name of your recipient, the account number of your recipient, and their bank account type and branch city.
Step #3 – Find Out the Fees and Exchange Rates
Unfortunately, you won’t be able to make an international transaction for free. But on the other hand, by going with a third party transfer service, you’ll no doubt pay a lower amount than you would have had to with a bank wire transfer.
First, you’ll need to pay a small fee, which should either be a percentage of the amount you’re sending (usually between 1-5%, with around 3% being the most common) or a fixed price (usually $40 to $80). Transfer services usually charge a percentage while banks charge a fixed amount.
The exchange rate simply refers to the currency conversion rate between your currency and the currency of the country you’re sending the money to. Exchange rates vary by the transfer service and are constantly changing. You will want the lowest exchange rate possible, because you’ll likely also have to pay a margin of the exchange rate to the transfer service (it’s the primary way they make their money).
Step #4 – Choose How You Will Deliver The Funds
Next, you will have to choose how you would like to deliver the funds, and you also have two primary options here: either through direct deposit or through cash pickup.
In the case of the later, the recipient will visit one of the physical establishments of the money transfer service and present their photo ID and order number. They will then pick up the money in the form of cash.
With direct deposit, the funds are instead sent directly to the bank account of your recipient. Confirm which delivery method your recipient would prefer.
In addition, certain countries also allow courier delivery, meaning the money will be hand delivered to the home or the office place of your recipient. Most countries do not allow this, so don’t bet on it. Direct deposit or cash pickup are the two primary options.
Step #5 – Wait
Once you’ve submitted the transfer, the only thing left to do is wait. It’s important to keep an eye on the transaction to make sure it goes through.
The length of time will depend on the transfer service that you chose, but most of the time, transactions should be completed within one to two business days. This stands in stark contrast to wire transfers, which typically take a minimum of five business days in order to process (in addition to costing more to begin with).
You should be able to watch the transaction process on the website or app of your money transfer service. Once the money has sent and been deposited to your recipient, you will get an email or notification to confirm it.
Sending Money Overseas
In 2018, sending money overseas has never been as easy or simple as before. These really the only five steps that you will need to follow to complete an international transaction.