3 International Money Transfer Options and Their Pros And Cons

Need to send money overseas?

If so, you’ll be glad to hear you have more than one option for doing so. In fact, making an international transfer has never been as simple or straightforward as it is today.

Here are three international money transfer options and the pros and cons of each:

Option #1: Money Transfer Service 

Due to the large number of people who need to send or receive money internationally every day, the money remittance industry in general has only grown larger.

A third party money transfer service such as Remitly is an excellent option for sending money quickly, securely, and inexpensively. You can either complete the transaction online or visit the physical establishment of a transfer service in-person.

While a money transfer service may not be the best option for sending an unusually large sum in the tens or hundreds of thousands of dollars, it is a great option if you want to have the money sent fairly quickly (1-2 business days) and while simultaneously paying lower fees in contrast to other options. 

Option #2: Wire Transfer (With Your Bank) 

Bank wire transfers are a reliable and secure option for sending a large sum of money, such as over ten thousand dollars. Some banks may even allow you to transfer as much as two hundred and fifty thousand. Wire transfers can also be done either in-person or online.

The two major downsides to the bank wire transfer, however, is that the process is very slow (transactions will typically require five to ten business days in order to process), and fees can be high as well (flat fees of $40 to $80 are not at all uncommon).

Option #3: Debit Card or Credit Card

The next major option to transfer money internationally is to do so via debit card or credit card. This is by far the fastest option as the transaction can be processed in less than half an hour. The downside is that, as with the bank wire transfer method, is that fees are high.

In addition to paying a large fee to have a debit or credit card that can make international transactions, you will also have to pay a small fee for each transaction that is completed.

Besides a normal debit card or credit card transfer, you also have the choice of loading the money onto a pre-paid debit card to send to your recipient. The recipient can then use the pre-paid card to either withdraw money or make purchases just like a normal debit card.

But be warned, pre-paid debit cards will usually cost around twenty dollars in order to own, plus fees may be incurred if it goes for an extended period of time without activity.

Making an International Money Transfer

These are just three of the many different methods for sending money overseas. The method you choose should be based on what’s the most convenient and inexpensive for you.