Working and earning money abroad is no easy task to do. That’s why if you’re sending remittances back home, you want to make sure that you get the fastest and most convenient means to send your hard-earned money overseas.
That said, let us take a look at the real deal with International Money Transfers (IMTs). Here we will lay down the perks and know-hows on everything about IMTs.
What makes IMTs work?
There are several features which make IMTs work for various types of clients. If you are looking for a company for making a transfer, consider the following points first to see if they meet your requirements for the job:
- Exchange Rates
Consider this carefully before making a transfer because the value of your money in your currency may be converted to a larger value in other parts of the world if you are mindful of the best rates out there. So, it’s important that you first compare rates to make the most of your transaction/s.
- Fees
As with any other international service, expect some kind of fee for your transaction/s. However, do be careful with hidden fees as these, if not closely reviewed, might pile up and significantly reduce the value of your money transfer.
- Transfer Speeds
If you’re working on a schedule and need to make payments on a regular basis (e.g. on-going projects such as building a house, funding a business, etc.), it’s important to pick which company can provide the service that fits your schedule for your transactions. Most IMT companies work within 1-5 business days to complete a transaction, mostly for identity verification and standard security measures.
- Spot Deal
Exchange rates fluctuate almost all the time so IMTs offer a spot deal feature which allows the buyer (you) to “lock in” on a particular exchange rate on-the-spot. However, you need to get the money to the provider or make the transfer within 24 hours when using this feature.
- Forward Contract
This is another feature of IMTs which allows the buyer to lock in a good exchange rate even if they don’t intend to make a transfer right away. This feature usually takes effect for three months up to a year. Typically, you will need to place an initial deposit, usually around 10% of the amount, then the remainder of the money you’ll transfer in the future.
- Transfer Limit
Most, if not all IMT providers, set a limit as to the amount of money you can transfer using their service. This could also mean a certain transfer limit for a period of time or a limit depending on the mode of transaction you choose (e.g. online, over the phone or in person).
- Regular Payment Plans
Depending on the necessity and availability, some IMTs can help you set up regular payment plans for bi-weekly, monthly, or quarterly terms. In addition to convenience, setting up regular payment plans with one particular IMT company could mean certain discounts on transfer costs; some IMTs would even offer a locked-in rate for all your transactions made through them.
- Limit Order
If you haven’t got the time to regularly check for the best exchange rates to come out, IMTs can help you set up a limit order through which you can select an exchange rate you’d like to work with for your transfer. Only when this rate comes up will the IMT provider process your transfer/s. However, do note that once the requirements for a transfer have been met and processed, you can no longer make changes to the transactions you’ve already placed under this set-up.
What are the Benefits of using IMTs?
Surely there are other traditional ways of sending money overseas, but here are certain points that can prove quite useful when you decide to switch to an IMT provider for your next transfer:
- Better value for your money.
Out of the several IMT providers out there, you are sure to find one with the best deals to give your money better value than your regular bank account transaction for money transfers.
- Wide range of features for your convenience.
As detailed in the above points, IMTs offer a wide range of features which include spot deals, forward contracts, regular payment plans, and limit orders which you don’t get to enjoy with credit card and bank account transfers, or even with other international payment methods such as PayPal.
- Higher transfer limits.
As we all know, banks operate within standard withdrawal limits which can affect the amount of money you can transfer overseas in a day. While some IMT providers also set maximum limits with how much you can transfer; comparatively speaking, IMTs offer higher limits. This is particularly good news for those who need to send large remittances abroad, say, when paying for investment properties and the like.
- 24/7 accessibility.
While banks operate within regular office hours, most IMTs provide easy online or over the phone access to help you with your money transfer jobs and concerns.
4 Tips to snag the best IMT package
- Hold onto your transaction receipt and take note of the time limit for claiming refunds.
There is a certain time frame in which the recipient has to claim the amount you’ve transferred. Otherwise, you can make a refund provided that you have your receipt for the transaction.
- Look around for and review IMT deals and offers.
Now that you have everything you need to know about what IMTs can offer, start comparing deals and take note of major differences and quality offers. Be sure to review all terms and conditions to help you understand the entire package and not just see the shiny offers.
- Plan how to take advantage of your IMT package.
Consider the added value from the smart IMT features such as limit orders and forward contracts when planning your money transfer to get the best exchange rates for all your transaction/s.
- Consider the amount you’ll transfer.
As with any other financial transactions, the higher amount you put in sometimes draws in attractive perks. For some, this could mean fees being waived by their provider or receiving loyalty bonuses. If no schedule gets run over and it is within your financial capacity, it is advisable to consolidate the money for your transfer rather than send small, staggered amounts overseas.
Opening your sights to other means of sending money overseas could work greatly to your advantage because of the benefits you get from a little change in your routine and financial habits. As they say, knowing is half the battle, and now that you know what’s in it for you why not see it for yourself and share it with others, if it helps.