In the last century, the world has changed in unimaginable ways: the distant places that might have seemed impossible to reach to our grandparents are suddenly only a flight away. In fact, many of us are starting a new life in these places, living in climates, eating food or taking on cultural habits that at some point might have felt very remote, but today are part of our everyday lives.
These and many other adaptations that we undergo while living away from home are only some of the challenges that we encounter. There are many more that require a more practical solution, such as, finding out the best way of sending money back home.
The reasons millions of people send money every day to their home countries can be as diverse as the faces we see every day on our way to work. For some of us, sending money is a way to say Happy birthday to that special person. For others, it is a way of knowing that our loved ones will be able to make ends meet. And for some, it may be a financial contribution to, say, an NGO-project in their home country that they stand for.
In this article, we will show you different factors you should consider when choosing a money transfer provider so that it best fits your needs and circumstances.
Think about these factors before doing a money transfer:
Maybe the first thing that makes many of us frown are money transfer fees. These are charges created by financial institutions and alike for transferring money from one person to another. Why are these important? For instance, The World Bank reports the average fee for money transfer is around 7%, which means about 38 billion US dollars are lost to fees. And numbers are rising: Money transfer fees to Sub-Saharan Africa in particular are higher than the average, at 8.2% for every $200 sent. In other words, sending $1000 will cost you around $80 in fees.
The amount that is being charged can vary depending on the service provider, the destination country, and the amount to be transferred.
The transfer fee may be a fixed amount, or a percentage of the total amount being transferred. Additionally, some services may also charge a currency conversion fee if the money is being sent to a country with a different currency.
It is important to research and compare the fees charged by different service providers before choosing one for your money transfer. Some providers may offer lower fees but take longer to process the transfer, while others may charge higher fees but offer faster delivery times. This brings us to our next point, the transfer speed.
The money transfer speed is the time it takes for money to be delivered to the recipient. This can depend on several factors, such as the way your recipient will receive the money, the country you’re sending money to and also the provider you chose for doing this.
Depending on the way you are sending a money transfer (known as payment methods), it might take a longer time for your money to arrive. Normally, bank transfers can take several days to be processed, while others, such as money transfers to mobile wallets or the cash pick-up option will have faster delivery times.
The country you are sending money to, or the destination country can also affect the transfer speed. Some countries may have more complex rules or require additional documentation, which can slow down the transfer process.
Finally, different service providers offer different delivery speeds, ranging from same-day delivery to several days or even weeks.
Some providers may offer better transfer speed for an additional fee, or use higher exchange rates as well, which is another very important aspect to keep an eye out.
An exchange rate is the value of one currency compared to another currency.
When sending money internationally, the exchange rate determines how much of the destination currency the recipient will receive in exchange for the currency being sent. Exchange rates are constantly changing and can vary widely depending on the country and the currency being used.
It's worth noting that exchange rates may also be affected by other factors such as political events, economic news, and market trends. As such, it's important to stay informed and monitor exchange rates before making a transfer.
Sometimes you might need to send money to a bank account. At other times, your recipient will need money in cash, that’s why the cash pick-up option might work better. Depending on the provider and the country you’re sending money to, normally you can choose between:
Bank transfer: This involves transferring money directly to a recipient's bank account. The recipient will need to provide their bank account number and routing number to receive the funds.
Mobile wallet: This involves transferring money to a recipient's mobile wallet account. The recipient can then transfer the funds to their bank account or use the money directly from their mobile wallet.
Cash pickup: this is the way to send money to a selected pickup location where the recipient can collect the money in cash.
Security is an essential factor to consider when sending money, as there are risks associated with transferring money, particularly when sending money internationally. Here are some key factors to consider:
Service provider reputation: research the money transfer provider's reputation before sending money. Check reviews and ratings online to see what others have to say about their experiences with the provider.
Encryption and fraud prevention measures: look for a money transfer provider that uses encryption and fraud prevention measures to protect your personal and financial information.
Regulation and licensing: check if the money transfer provider is regulated and licensed by relevant financial authorities, as this implies additional security and peace of mind.
Authentication and verification: some money transfer providers may require additional authentication or verification steps to ensure the identity of the sender and the recipient, which can help to prevent fraud and unauthorized access to your account.
Refund and dispute resolution policies: it's important to choose a service provider with clear refund and dispute resolution policies in case something goes wrong with the transfer. In this case, customer support service can be very important.
At Rebtel, we’ve already thought about these factors for you:
We are fee-free: all your fees are on us because we think you shouldn’t pay a single cent more when sending money
Most of our money transfers are completed within minutes, 22 min on average, to be specific.
We’ve found the best exchange rates for you because we don’t believe in sneaky cuts.
You can choose the way you want them to receive the money:
At Rebtel, we offer up-to-date security measures, such as encryption, authentication, fraud detection, among others, to ensure you and your money are safe at all times.
In case you have any questions or are experiencing some (unlikely) issues with your money transfer, our customer support is there 24/7 to help you out.
Eugenia is 29 and is working as a graphic designer in Portland, Oregon. In her free time, she loves dancing salsa, as it makes her feel as if she were at home in the Dominican Republic. She’s looking for the best way to send a gift of 500 USD to her mum back in the small town of Dajabó as its Mother’s Day on May 28th. Eugenia needs her mum to receive money in cash, because she doesn’t have a bank account. After having read our tips on sending money, Eugenia has done some research to compare which money transfer provider best suits her needs.
Eugenia chose Rebtel in this case, as it charges no fees, unlike Remitly, which was the 2nd best option.
Devdas is a 47 year old consultant who thrives in the pharmaceutical industry. Originally from Jaipur, India, he has been living and working in Denver for the past 20 years. Despite having spent half of his life abroad, Devdas’ ties to India are very strong, especially because of his 21 year daughter who studies medicine in Delhi. Devdas needs to send approximately 2000 USD per month to her to cover the costly tuition fees and her daughter’s rent. He wants her to receive the money directly in her Indian bank account. After comparing some money transfer services, this is what he discovered:
In this case, Devdas’ 1st choice was Rebtel because of the exchange rate and 0 fees. But as 2000 USD exceeds the daily limit, he decided to choose Remitly as it was more convenient than the 2nd best, Wise. Although Wise has a better exchange rate, the fees are quite high so in the end Parvati would receive less with Wise.
Akwete is 54 and currently working as a guest lecturer in neurolinguistics during one semester at Princeton. She is looking for the best option to send 800 USD to her student son back home in Accra directly to his mobile wallet. When comparing several options, this is the result she got:
Akwete decided to choose Rebtel, considering that it is fee-free and offers the best exchange rate.
These are some of the tips we thought you should know about when choosing the best money transfer provider: In the event that you decide to choose Rebtel, we’ll be happy to be a part of your everyday life!