Overseas money transfer has become a general medium of payment transactions for businesses that are becoming a part of the developing global trade. While there are many forms of payment modules, one of the most common mediums for transferring money is through online payment services. Service providers for online money transfer help create a user account, after which the user can simply transfer money from the comfort of their home or work space with the simple tap of a computer. This payment mode is best suited for immediate transfer of money to the receiver’s account, at the charge of a small fee based on the amount that is being transferred.

While the conversion rates are inbuilt into their system for ease of access, these online payment service providers only allow feasible transactions of certain amounts, in order to keep the money flow legal. Any detection of suspicious activity or illegality would result in the freezing of funds. This system just need the receivers email id and name to transfer funds. The then funds land in the service providers account, after which the receiver can transfer it to their respective bank account using the appropriate authorization.

There are other options for overseas money transfer like money transfer operators and international bank wire transfers. Popular money transfer operators like Western Union, Money Gram, etc. have access to a wide range of countries, wherein the facilities are available both online and in physical centers in various places around the globe. They charge a minimal fee for the transactions and the receivers have the option of transferring the amount into their bank accounts or withdraw it as local currency by providing the required ID proof. While these services have high speed delivery for emergency situations, the drawback however is the number of scams that are pulled off through these transfers due to the comparatively lower security.

On the contrary, although bank wire transfers for international transactions are time delayed, they are fool-proof because the transfer is between authenticated bank accounts and the chances for frauds are lower. However, this type of transfer requires detailed information to be filled out, in order for the transaction to be successful, and the amount charged for the transaction would depend highly on the rate of the currency being converted to and the amount being transferred. Some of the other upcoming payments modules that are being updated with technological advances are money orders, foreign exchange (FX) brokers, and peer-to-peer currency exchange markets.

Overseas money transfers involve more than just a mere transfer transaction because individuals trying to transfer money back home from abroad or vice versa need to understand the various dynamics involved in the transfer of cash. Every country has its own currencies and the exchange rate between the currencies is varied. This is why one should thoroughly study about the currency of the country to which the transfer is destined. The internet provides various conversion rate calculators which will ease the hassle of converting currencies manually. It is also important to note that during an overseas money transfer, there are costs that have to be borne by the transferor as part of the transaction process. Some of the important factors that influence overseas money transfer include a base fee, exchange rates, service fees, etc, and the time required before the recipient actually gets the money.

It is important for transferors to weigh all the essential factors involved in understanding the costs incurred for transferring money overseas such as the type of money transfer being done, etc. The primary question that a transferor had to ask themselves is whether the conversion rates are high or low based on the country to which the money has to be transferred. In the process also consider whether the money has to be converted to the local currency, or whether it can be maintained in the same currency as the country from where the transfer occurs. In order to maintain the same currency, the transferor will have to hold an international bank account that allows for this feature. Normally banks do not grant international transaction of funds unless such transactions are specifically requested for and provided the bank has such facilities inbuilt in their system. This is because all banks don’t have international liaisons.

For an individual transaction, the amount of money being transferred would be smaller in comparison to a business that has to hand over payouts to their counterparts through overseas money transfers. If it is a one-time charge then the cost involved would be more compared to a business that has arrangements with a bank or other international payment service providers to send out recurring payments. Other crucial factors that influence overseas payment is the time taken to generate the transfer because in some case it may be a general payment, it could also be an emergency payout in certain circumstances and time taken to deliver the amount would be crucial. Given that there are numerous factors including the safety that a transferor has to consider before doing an overseas payment.