If you want to pay for something in your own country, or need to send money to family and friends, then it is a pretty straightforward process. You pull out your credit card or set up an online payment, and you are done. However, sending money overseas can be a more complicated process. There are actually a number of different options, but choosing the best one can often be difficult.
Perhaps the most obvious way to send money is to pull out your checkbook, write a check and put it in the mail. However, this is probably the poorest all the options available to you. Depending on where you are sending the check, it can take a week or more to arrive in the mail at the other end, and, once it does arrive, it can take up to a month before the check clears and the money is in the other person’s bank account. Obviously, if time is no problem, you can do this – but in most cases, you will want the money to arrive quickly.
Another approach is to set up an international bank transfer – this will get the money to the other end in 4 to 5 days. In order to set up an international bank transfer, you will need to get the details of the recipient’s bank account, including their SWIFT and IBAN numbers. However, if you are considering transferring a very large amount of money, then you may not get the best exchange rate using this method. If this is the case, consider doing the transfer through a currency broker instead.
Of course, an international bank transfer only works if the recipient has access to a bank account. If they don’t, or you need the money to arrive more quickly, then consider doing a wire transfer using a service provider. You will pay a bit more than you would doing a bank-to-bank transfer, but the money will show up at the other end much more quickly – and the person can pick up cash provided that they have appropriate identification.
If you want to have money arrive at the other end instantly, use PayPal. Depending on which way you choose to do the transfer, PayPal will either charge you for the recipient a fee of about 4% of the transfer amount. However, although the payment will arrive right away, you should note that the recipient will need to withdraw to their bank account once they receive it if they want cash, which can take anywhere from 3 to 7 days depending on the country. On the other hand, they also have the option of using their PayPal balance to pay other PayPal account holders, and they do not have to withdraw the money first to do this.
Another approach is to set up an international bank transfer – this will get the money to the other end in 4 to 5 days. In order to set up an international bank transfer, you will need to get the details of the recipient’s bank account, including their SWIFT and IBAN numbers. However, if you are considering transferring a very large amount of money, then you may not get the best exchange rate using this method. If this is the case, consider doing the transfer through a currency broker instead.
Of course, an international bank transfer only works if the recipient has access to a bank account. If they don’t, or you need the money to arrive more quickly, then consider doing a wire transfer using a service provider. You will pay a bit more than you would doing a bank-to-bank transfer, but the money will show up at the other end much more quickly – and the person can pick up cash provided that they have appropriate identification.
If you want to have money arrive at the other end instantly, use PayPal. Depending on which way you choose to do the transfer, PayPal will either charge you for the recipient a fee of about 4% of the transfer amount. However, although the payment will arrive right away, you should note that the recipient will need to withdraw to their bank account once they receive it if they want cash, which can take anywhere from 3 to 7 days depending on the country. On the other hand, they also have the option of using their PayPal balance to pay other PayPal account holders, and they do not have to withdraw the money first to do this.
Finally, another option is to send an international postal order, which can be made out in a number of currencies. While this will still take several days to arrive in the mail, it can be cashed right away at the other end, unlike a check.
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