Whether you are into FOREX, Cryptocurrency, Fintech, or someone who deals with multiple people and businesses worldwide, you will need international wire transfer services. Knowing the best way to send international wire transfers will help you eliminate operational obstacles and shed costs from your operating budget. You need to make sure you make the right decision when choosing an international wire transfer service.
Depending on your needs, many factors will vary. We here at Zed Network usually work with Fintech companies and FOREX dealers and provide them with a complete payment orchestration platform to cover international wire transfers. However, if your needs are different, you can choose several online international wire transfer service providers and banks. We here at the Zed Network specialize in the finance industry, especially the payment infrastructure niche.
So we are perfectly placed to tell you how you can find the best international wire transfer services near you. When choosing an international wire transfer service, you need to make sure they meet many different criteria like the transfer fees and costs.
Finding out things like the transfer cancellation policies and your rights when it comes to online money transfers are just a few things you need to know. But before we dive into discussing how you can choose the right service, let’s tell you a little bit more about international wire transfers.
What Really Is International Wire Transfer?
Well, you already know what it is. It’s a way to transfer currency overseas to different entities. The money can be received in two ways, and one is electronic, the other in cash. However, now the industry standard is electronic. Before the advent of Fintech, it was handled through a bank or other specialist financial institutes. Nowadays, you’ll find online money transfer companies are more popular than the traditional institutions.
According to Zed Founder and entrepreneur Alan Safahi, most wire transfers usually go through SWIFT or Peer-to-peer payments (P2P). It has become a part of the mainstream as technology evolved, the fees decreased while also ensuring a higher caliber of security and improved transfer rates.
Swift and other peer to peer payment systems have become an integral cog in the global economy right now with around $5 trillion in transfers per day, according to the U.S. Treasury. Now all this means is that sending money overseas through online money transfer companies is a great option for you. If you are wondering about the cost of international wire transfers, you should know that there’s no exact answer. The price of an international wire transfer is usually dependent on three leading proponents. They are:
- The company you are using to send the money.
- The country you are sending the money to.
- And the method of transfer.
If you want to find the best way to Send International Wire Transfers, you need a comprehensive approach to selecting the company. So how do you do that? Well, that’s what we will talk about here. In the following passages, you will find all you need to know about finding the best way to send international wire transfers. We will start with the most critical factors in money transfers and work our way from there. So without any further delay, let’s begin!
The Most Important Money Transfer Factors
Choosing the right company or platform for international wire transfers isn’t as simple as conducting a Google search. But that doesn’t mean you won’t have to do it. You will discover companies that offer international money transfer services, but then choosing from one of those will require quite a bit of knowledge. There are several factors you have to consider when selecting a platform. Here they are:
As you already know, the exchange rates of currencies between the countries may vary from country to country. While new laws have been put in place to ensure banks cannot charge inflated exchange rates, you should still double-check the rates to ensure it’s accuracy if transferring money overseas. You can easily ensure you have the best exchange rate by contacting banks and credit unions. Ask around and see the rates they give you and if it’s not constant, then go with a platform that offers you the best value.
The Amount Of The Transfer
The service you take up should depend on the amount of money being transferred. If you transfer smaller amounts, then there are specialized money transfer companies who can help you with that. However, if you transfer a reasonably large amount, you need to find a company that usually deals with larger business transfers. Remember, the higher your amount, the more you should avoid banks as large amounts tend to have hefty fees tacked when transferring overseas.
Comparing Transfer Fees
In this day and age, everything we choose is based on comparison shopping, which goes international wire transfer services. Make sure you shop around at different banks, institutions, and companies to find the best exchange rate on the currency of the country you are transferring money to. When comparing exchange rates, you should also consider the transfer fees.
According to Alan, companies vary in their transfer fees, so if you are sending an urgent fund, then make sure you choose a company that isn’t overcharging you. However, if you are only sending something like 10-50 dollars for a birthday or something, then you may want to consider regular mail. Now that the critical factors are done let’s talk about the types of money transfer companies and reasons you should consider them for personal use.
Types Of Money Transfer Companies & Reasons To Use Them
It’s 2020; banks are not the only option for international money transfer services. Many companies offer bank-beating rates and are cheaper, faster, and more convenient while being as secure an option as your bank. There are three main types of companies that fall under the following categories:
- Remittance Companies
- Peer-to-peer (P2P)
- Non-Peer-to-Peer (P2p)
Now that you know the categories by name, let’s explore a little more to ensure you know enough to make the right decision for choosing a company for your international wire transfer need.
Remittance companies have been operating for some time now as their services were always geared towards the immigrant population. These companies facilitate the transfer of money from the country the immigrant is in, to the immigrant’s home country where their family is. Remittance has been a driving force for the economies in the developing world, and remittance companies have played a significant role.
P2P Companies (Smaller Transfers)
P2P stands for peer to peer, meaning that P2P companies deal with smaller transactions between two or more people. They allow you to send money directly to someone else across borders without much hassle. You can transfer the money directly from your bank account to theirs online or through cell-phones. Since these transactions are small, they don’t raise financial institutions’ attention, meaning a faster transfer rate.
Non-P2P Companies ( Large Transfers)
These companies handle huge transactions. Non-P2P transfers are usually made between companies in different countries or huge transfers between individuals. Because of the transactions’ size, financial institutes’ attention may be raised, with additional steps may be required for the transaction to go through to other countries. Now that you know the three main categories let’s discuss why you should choose money transfer service providers for sending international wire transfers.
The Reasons To Use Money Transfer Service Providers
Online money transfer services are popular amongst the masses because they offer a refreshing alternative to banks and other traditional financial institutes. Here are three main reasons why you should choose them:
Specialized Services: These companies provide you the best value when making international wire transfers. You will find competitive rates and often find the best exchange rates at the lowest prices.
Saves You Time: These service providers have streamlined the process to ensure you can send money across borders within a matter of minutes, unlike your bank, which will take several hours to days to get the wire transfer through.
Saves You Money: These companies save you tons of money because you will be bypassing many fees that can bring up the cost of the international wire transfer while also ensuring you have a better exchange rate than what the banks offer.
As you can see, online money transfer services are the best options out there for you when making an international wire transfer. Now that you know they are the right choice for you than traditional methods, you may be wondering, “what to look for in a money transfer company?” Well, that’s what we will talk about next.
Things To Look For In A Money Transfer Company
There are thousands of money transfer companies out there, and only a few are great for international wire transfers. Choosing the right platform can be a tricky process if you don’t know what to look for. Well, here are six things you should look for in a money transfer company:
Security & Safety: Online money transfer industry is a highly regulated sector with many different governing authorities setting the regulations in place. Amongst them, FCA (Financial Conduct Authority) in the U.K., ASIC (Australian Securities and Investments Commission) in Australia, and FinCEN (Financial Crimes Enforcement Network) in the USA are the most prominent ones. There are a few regulatory authorities as well. So make sure you choose a company that meets all the regulations.
Exchange Rate: This is a vital criterion as we’ve mentioned this a few times before as well. Remember, if you are sending large amounts overseas, then even a minute change in exchange rates can significantly impact your overall cost. So make sure you find the company that offers the best rate.
Transfer Fees: This is directly related to international wire transfers. The fees depend on which service you take up. Now it can be a flat fee, which will be a percentage of the amount you are transferring or a cost dependent on the method of transfer you are looking to use. Now, if you use credit cards for your transfers, then odds are you will be paying enormous fees. We recommend using bank accounts when using a money transfer service provider. Another thing to note, there are services out there that will offer transfer without fees, so make sure you conduct thorough research.
Transfer Speed: Transfer speed means the time it takes your international wire transfer to go through and have the money deposited in the receiving account. Usually, it takes around a few hours to up to five working days, with a few even offering transfers in minutes for P2P. So make sure you take that into account when choosing your money transfer service provider.
Received Amount: This is probably the second most crucial factor to look at when choosing a money transfer service. The amount of money the receiving bank account will get after the deduction of all the fees is crucial in finding the right company to help you find the best money transfer company.
User Experience: Seamless navigation, intuitive interface, and impeccable service have become the cornerstone of every successful modern business. All these things combined ensure ease of use for the traffic coming in, meaning these ensure a fantastic user experience. So when choosing a money transfer service, make sure the company has a proven track record in providing a great user experience. Choose companies that have a proven track record of delivering outstanding customer service as well.
These are all the things you should look for when choosing a service provider for your international wire transfer needs. So now that you know what to look for in a money transfer service provider, let’s talk about another essential aspect, the fees.
What You Need To Know About The Fees
When you are sending money overseas, there are few fees that you have to pay, and it’s nothing big, but it can drastically change with different services. It also varies from company to company, so always check out the terms and policies when choosing a money transfer service provider. Here are the fees that you will come across:
Transfer/Sending-Fee: This is the fee that the bank, credit union, or the company you are working with charges for the money transfer service they provide. As we said before, it can be a flat fee or a changing fee depending on the type of service you choose.
Exchange Rates: The exchange rate is the difference between the value of two currencies. Due to free trade conditions, different companies may end up offering different exchange rates. However, the rates are set every day, so you will be able to understand if you are being overpriced or not.
Receiving Fee: So this is precisely what the name suggests. It is a fee for receiving end where the fee is deducted when deposited in the receiving account. Now you won’t see a receiving fee in every company, but they are common so make sure you know before taking up the service.
Now that you know about the fees, we can move on to the next thing. However, this is an excellent time to let you know about your rights regarding money transfers. There are plenty of regulations in place to deter scams and protect customers. Regulatory bodies have stipulated that companies, banks, and other institutions need to provide purchasers with specific documents. They need to provide these documents when any transaction above 15 dollars. The information these companies need to provide include but are not limited to the following:
- All tax and fee documents the sender had to pay to complete the transfer.
- Providing the current and exact exchange rate to the customers.
- Any additional fees that may be charged by third parties.
- The total amount that needs to be paid.
- The total amount the sender is sending and how much the receiver will get.
- Additionally, they can terminate the transfer within 30 minutes of placing it.
- And transfer tracking information.
Now that takes care of all the information you needed to know to find the best way to send international wire transfers. If you are still thinking about going with a bank, then here are some reasons why money transfer service providers are better than banks.
Reasons To Not Choose A Bank Over Money Transfer Companies
By now, we hope you already understand why money transfer service providers are the best option for you. However, if you are still not convinced, then here are a few reasons why banks aren’t the best way to send international wire transfers:
- Banks are much more expensive than other institutes.
- A congested and confusing process that requires much information.
- You will need to have an account with them.
- Banks are slower than money transfer companies.
- Usually offers limited transferring options, with only the bank to bank transfer being the guaranteed option.
- Banks don’t offer flexible transfer options, especially with small transfer needs.
- Banks do not offer great value for money with transfers, substantial transfers.
So you see, banks have more downsides than upsides when it comes to international wire transfers. That’s not all of what we have in store for you here. You already know how to find the best way to send international wire transfers. However, there are ways you can optimize them, and that’s what we will talk about next.
Ways To Optimize Your Search
You already know how to look for the best way to send international wire transfers. But here are some tricks you can utilize to ensure you get the best out there:
- Shop around a lot and compare companies.
- If you are sending minimal amounts, then we recommend you don’t use international wire transfer services.
- Thoroughly check the exchange rates.
- Choose companies that provide you with value, meaning choose companies that offer the best deal for your transfer.
All the things listed above, if followed precisely, will make sure you gent the best deals in exchange rates and seamless transfer process. So you can be off to the races to find the best option for you. Make sure you check out our next section, as it will give you a boost in your research.
BONUS: Some Of The Best International Wire Transfer Service Providers
As you already know, there are thousands of companies to choose from, so finding the best might feel like finding a needle in a haystack. So we here at the Zed Network thought we should give you a boost in finding the right solutions. Here are some of the best options out there for you:
PayPal: PayPal is one of the most popular and one of the best payment gateways and money transferring options out there, and you can never go wrong with it.
WorldRemit: It is one of the best options out there when considering international wire transfers. However, keep an eye on the fees and exchange rates.
Transferwise: Transferwise is a popular choice amongst people who travel the world. The company’s vision is to ensure “borderless banking,” ensuring that managing money in multiple currencies is a breeze.
Remitly: It is one of the most affordable options out there, and it is the perfect option if you are sending from a developed country to a developing one. Add to that the moneyback guarantee for missed deadlines is quite an incentive.
X.E. Money Transfer: It has a trust rating of 5 out of 5 on the Trust Pilot and has already become
One of the most recognized international wire transfer service providers globally.
OFX: Rated 4 out five on Pilot, it is an emerging brand. It offers its services without any transfer fees, and you can transfer money using your debit card.
SENDFX: Another company that is rated 5 out of 5. The Australian company is a top-rated company, and it has won the ‘Best value international money transfer provider’ by Mozo last year. It offers excellent exchange rates and while also having no fees. Besides these, their customer support is one of the best around.
TORFX: This U.K. company has won quite a few awards already because of its fantastic optimizations that provide the perfect user experience. You will also find highly competitive exchange rates and no fees.
ZED Network: While ZED Network isn’t a traditional money transfer service provider, we had to put it in here because of the value it will provide to companies. ZED Network provides dynamic payment orchestration platforms to ensure you run a smooth operation.
So if you work in FOREX, cryptocurrency, or are the founder of a Fintech company, then Zed Network is the perfect option. Our approach to creating the ideal payment orchestration solution includes a comprehensive strategy to ensure seamless international wire transfers. Here is what Zed Network can offer you:
- Available currencies- 150+ Countries
- Countries for acceptance- 110+
- Countries for Payouts- 200+
- Liquidity/Inventory – Majors- High
- Liquidity/Inventory – Exotics- High
- Settlement Time – Exotics- 1-2 days
- Bank Transfers- Yes (B2B & B2C)
- Credit Cards- Yes (B2B & C2B)
- Mobile Wallet- Yes (B2C and C2B)
- Cash Network- Yes (B2B & B2C)
Licensess / Compliance
- Jurisdictions for client onboarding- A.U., CA, E.U., N.Z., S.G., U.K., U.S.
- Tech friendly API documents- Yes
- White Label solution- Yes.
- API for compliance/risk management- Yes
- API for loyalty/rewards- Yes
Seamless International Wire Transfers
So there you have it, we gave you all the information you need to make the best decision when looking for an international wire transfer service provider. Hopefully, by now, you can find the right service provider to ensure seamless international wire transfers. If you have any questions regarding Zed Network or need comprehensive payment orchestration platforms, please feel free to get in touch with us, and we will help you out.
If you discover any information that we did not include here, then please let us know in the comments below or hit us up on our socials. We love to hear from you, and connecting with you allows us to ensure we provide the best quality out there customized according to your needs. And with that being said, we are done for now. We will come back with something new about the world of finance very soon. Until then, ya!