Top 5 Methods To Send Money To Friends And Family Abroad
Sign in

Top 5 Methods To Send Money To Friends and Family Abroad

 
print Print email Email

Did you know that every year, around six million people in the United States send money to relatives and friends overseas?

Since the demand for sending money overseas is quite large, there are naturally a large number of methods for how you can, and each of those methods has its own unique set of pros and cons.

Here are the top five methods to send money to friends and family:

1 - Bank Wire Transfer

A bank wire transfer is arguably the most well known way for sending money overseas. It’s also one of the most expensive.

The main benefit to using a wire transfer is it’s one of the best options for sending large amounts of money. Some banks will allow you to send as much as $250,000 in a single transfer, though $50,000 or less is usually more common.

The reason why this method is one of the most expensive is because of the very high flat fee you’ll have to pay, which can be anywhere from $40 to $80. For sending smaller amounts of money, that fee will represent a significant portion of what is being transferred.

2 - Free Bank Transfer

So long as you and the recipient have an account with the same banking branch, you should be able to send money over for free so long as your bank allows it.

Not all of the major banks have this service (although most credit unions do), so if they don’t you’ll either need to use the wire transfer or an alternative option instead.

3 - Money Exchange Service

One of the most attractive options for sending money overseas will be to use a third party money exchange service. The reason why this option is so appealing to many people is because the fees are significantly lower in comparison to using a bank wire transfer, and furthermore the transfer times are faster as well.

Instead of paying a large flat fee, you’ll just pay a small percentage instead (such as 1-3%). You should also have to pay a small margin of the overall exchange rate. In contrast to a wire transfer that can take up to five business days, if not longer, a money exchange service should be able to send the funds in just one to two days instead.

4 - Money Order

A money order is simply an amount of money that you pay to a bank or a post office and that is then written to your recipient.You can conduct a money order either online or in person, though it is recommended that you do it in person because there are not a large number of reputable companies who allow money orders online.

The main appeal behind a money order is that the funds are guaranteed for the recipient, because you have already pre-paid. This extra layer of security is very attractive to a lot of people, especially in comparison to alternative options such a cheque.

The main disadvantage behind money orders, however, is that they are typically very slow to transfer, and can take several days to process. In this regard, it is not the most convenient or speedy option.

 5 - Prepaid Debit Card

How the prepaid debit card method will work is you will transfer an amount of money onto a debit card and then send that debit card to the recipient where they can withdraw funds and make purchases. You can also replenish the card in the United States, making the funds available within minutes.

Nonetheless, using a prepaid debit card can also be costly. In addition to paying a $20 fee to activate the card, there will also be a monthly fee (usually around $5) and a percentage fee for every transaction that is made with the card. The monthly fee will also increase if the card goes longer than six months without any kind of activity.

That’s also not to mention the delivery fee and the amount of time it takes to get the card to your recipient in the first place.

Sending Money Abroad

 All in all, these are the five most popular and viable options for you for sending money abroad to your close friends and family.

 Each of these methods have their advantages and disadvantages, and some are costlier or more time consuming than others. If often comes down to a matter of how much money you need to send and when you need to send it by.

prevnew
start_blog_img