The demand for international money transfers is higher than ever, but if you’ve never done it before, you may want to think twice before you act. We have some tips to help you avoid some costly beginner’s mistakes.
Most of us will know someone living abroad these days. So many of our children are taking their gap years overseas or our friends and family are holidaying in far off locales. And with Australia becoming an increasingly multicultural society, more of us will have family networks in other countries.
As a result of this, more and more of us are sending money abroad, but without putting any thought or research into the process. There are a number of easy mistakes to make due to lack of awareness that can end up costing you money.
So, here are my best hints when it comes to avoiding the pitfalls of international money transfer – I hope you find them helpful!
Know what extra costs you’ll be subject to
You should know first of all that you will have to pay a transfer fee to send your money overseas, and you should find out the current exchange rate for the currency of the country you’ll be transferring to. These costs are likely to vary depending on the institution. It’s also worth noting that exchange rates are subject to frequent market fluctuations.
When in Rome, send as the Romans spend..
Before sending money overseas, you should consider sending your amount in the overseas currency in question, instead of sending it in Australian dollars. This form of transfer will usually work out cheaper as there are fewer banks involved in getting your money where it needs to be. When transferring, each bank forming a link in the chain between you and your payee will deduct a processing fee, so minimising these links will lower this cost.
Sending in the local currency also gives you a much clearer picture of the exact amount your beneficiary will receive.
By failing to prepare, we prepare to fail
It sounds a little preachy, but when it comes to sending money around the globe, you really do need to have all the details you need nailed down.
Whether you’re using a Telegraphic Transfer or a Foreign Draft, some basic things you’ll need to know may include: the beneficiary’s full street address, details of the beneficiary’s bank, bank address, account number, currency, transfer amount and SWIFT code or routing number. You may also need to provide an IBAN (International Bank Account Number) depending on where you plan to send money.