How do I make an international money transfer?
International money transfers have now become a regular and common practice for many people, whether to support their families abroad or to carry out business transactions.
According to World Bank data, international money transfers totalled around $630 billion in 2022, representing a 4.2% increase compared to 2021. However, before making such a transfer, there are certain factors to bear in mind to avoid any unpleasant surprises. In this article, discover some tips to bear in mind before making an international money transfer, beyond simply comparing the services offered by different providers in the market. By keeping these key points in mind, you can make your money transfer with complete peace of mind.
Assess your recipient’s money transfer needs
There are several ways to make an international money transfer: either by bank card transfer, online money transfer, cash order or in-branch. Each of these four methods has its own specific features, some of which may be advantageous whilst others may be less suitable for your needs. Based on these characteristics, you can narrow down your choice of how to transfer money, depending on whether:
- whether or not your beneficiary needs these funds at very short notice,
- whether this is a one-off transfer or you plan to make regular transfers in the future,
- your beneficiary needs a sum of money, large or small,
- and whether they live in a European country or on another continent, in which case different currencies from the Swiss franc are involved.
These four points are worth bearing in mind, as they will help you choose the option that suits you best, both in the short and long term.
Review local regulations
The country you’re sending money to may not have the same rules as the country you’re sending it from. Before making your transfer, make sure you’re aware of the local regulations: the maximum amount you can send, any additional information you need to provide, processing times, and so on. This quick check can help you avoid delays or complications with your transfer. To do this, you can refer to the information provided on the government website of the country to which you wish to send money.
Provide the correct bank details
When making an international money transfer via a bank, it is essential to provide the bank details (SWIFT code or IBAN) for the recipient’s bank account. However, whilst this step may seem straightforward, it requires particular care to ensure that the details are entered correctly: it is best to check with the recipient several times if necessary to make sure they are accurate and have been entered correctly when you make the transfer. This will help you avoid potential delays or failed transfers, which could result in financial losses.
Take into account fluctuations in actual, unadjusted exchange rates
As you are no doubt aware, the exchange rate plays a crucial role in your international money transfer. Generally speaking, it is difficult to predict fluctuations, which occur constantly in response to geopolitical and economic events. However, it is essential to take these into account to avoid any reduction in the actual amount you wish to transfer to the recipient.
One way to plan ahead if you’re thinking of sending money abroad is to keep an eye on movements in the foreign exchange market and the forecasts for it, and to regularly run simulations and calculate exchange rates for the currencies involved in your money transfer. .
In addition to exchange rate fluctuations on the FOREX market and between different money transfer providers, it is good practice to rely on the actual exchange rate rather than a marked-up rate. This is sometimes different from the exchange rate applied when transferring money via a bank, which can be much less favourable.
In conclusion, whilst comparing the services offered by different money transfer providers, it is important to take into account several factors—such as the recipient’s needs, local regulations, ensuring the information provided is accurate, and taking into account fluctuations in actual exchange rates—to ensure your international money transfer is carried out securely.
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