subject: Money Transfers - What To Watch Out For [print this page] The days of sending a check overseas and waiting several days for the money to become available to the person receiving the funds are over-- money can be sent almost instantly now! Some of these now money transfer methods, many of which are found online, come with policies or procedures that can cause unforeseen problems in sending money. Here are some things to watch for:
Hidden Fees: Most online money transfer companies are pretty good about listing their fees upfront, as they are in a very competitive industry where people sending funds have numerous options. However, some will try to hide fees or disguise them in unique ways. Watch for fees such as processing fees, handling fees, or convenience charges. These small fees can add up quickly. Other companies also collect money by offering unfavorable exchange rates-not necessarily a fee, but something to watch for nonetheless. There are often extra fees for using credit cards to initiate money transfers as well.
Poor Exchange Rates: There are some companies that will offer "no fee" transfers, tempting people sending money to use their service just to save a couple of dollars in fees. The danger in these companies is that they often offer an exchange rate that is well below what you'd get on the foreign currency market, and these companies make their money on the difference in the exchange rate they offered versus the true exchange rate. Remember that no one is going to handle your money transfer for free. Make sure you understand how the company you're using calculates exchange rates.
Inconvenience for Recipients: There are some companies who process money transfers where the money has to be picked through an agent at a specific location. The money may arrive quickly, but there can be a hassle for the recipient if they are missing any of the information required to receive the funds. For instance, there are some companies that will not release the funds if the recipient cannot tell them the exact amount that was sent.
Other services, require extensive documentation and verification of account status, making their service more inconvenient than it's worth. There are several companies where these problems can be avoided and it's worth doing enough homework to know that your recipient won't have any trouble accessing the funds.
There are several other matters that can be inconvenient for people sending money overseas, but these are some of the more basic issues to watch for. Being aware of these potential problems will help ensure that you ask the right questions and avoid these hassles in your money transfers.
by: Peter Frampton
welcome to Insurances.net (https://www.insurances.net)
