You have read and heard a lot about international money transfers. And you have come across many terms used in the process along the way, which you might not know in detail. Especially if you are an expatriate, for instance, an overseas worker from a developing country living abroad and often send money online to your family back home, you must have experienced various steps involved in the transaction process. The process takes you through terms you usually do not entirely understand. Also check automotive locksmith.
It is interesting to learn the terms separately used in the process. Let’s start.
The need for the expatriates to transfer money globally
Here are a few essential needs that make the expatriates send money back home.
To alleviate poverty
The foremost need for the expatriates to send money from abroad is to alleviate poverty. Most of the expatriates belong to low-income countries. They go to the developed states to find better work opportunities that they cannot find in their countries of origin. These expatriates find work and find the best way to transfer money internationally. The best choice they can make at the end of the day is the banks or some of the world’s best money transfer companies, including ACE Money Transfer.
To afford better education.
Another need is that the expatriates have to give good quality education to their children which they cannot afford in their countries due to limited means. Through remittances, they can manage to afford quality education which mainly falls outside their financial strength.
To secure a financial future.
With limited means, you cannot secure your future in terms of finances. But, if you go abroad and earn remittances, you can earn enough to save a fairly reasonable amount for the unseen times. Of course, future security is heavily dependent upon a robust financial base.
To make investments
With the foreign remittances, the expatriates can manage to invest. And the safest place to invest is property. It is known that almost all the expatriates globally tend to invest in property. And there are many reports of frauds where an expatriate sends money to purchase property but instead returns home to find that he is deprived of his hard-earned money.
To establish businesses
With these remittances, the families of expatriates can establish businesses. Of course, an expatriate goes to a foreign land for a brief time to earn money in amounts they will take longer to earn in their home countries. So, their returning home is a given. And on return, they tend to establish businesses, which creates employment opportunities for others.
The most sought after investment opportunity is the construction industry which kicks into life in several other attached industries.
Now, let’s see the current money transfer methods available today briefly.
It is the traditional method that is still practised. In it, a remitter will approach a bank and initiate a transaction. A wire transfer typically takes about three to five business days. But this time can extend due to the volume of the amount and the destination.
Online money transfer apps
It is a relatively new phenomenon. A remitter will send money through an app of a credible online money transfer company such as ACE Money Transfer. This method is cheap and transfers money quickly.
Online money transfer companies
Several companies are operating around the world offering remittance solutions. Typically, a remitter goes to a company’s office and initiates a transaction. But, here, you will have to consider several factors in mind such as fee, rates, speed, security and accessibility etc. If you want to avoid the hassle of visiting a physical office, an online money transfer is the best option for you, which works 24×7 for you.
Standard money transfer terms: explained briefly.
Here are the common money transfer terms that you must be aware of.
Account verification process
For opening an account, the institution requires some information such as your name, address, date of birth and identity. After obtaining this information, the concerned institution verifies it. This process is called account verification.
You must know that the requirements listed above can vary. But the ones mentioned are the most common.
In it, your money is transferred directly from your bank account to the recipients.
Cash pick up
It refers to collecting money in complex form from a particular point.
It is the virtual transfer of money from one bank account to another. It is also known as a bank transfer. To complete it, the sender requires the recipient’s account details.
Automated Clearing House (ACH) transfer is money movement between two bank accounts, not necessarily of the same bank.
The money is transferred from one place to another through computers with internet access. These are also called the EFT or Electronic Funds Transfer.
Here, one currency is exchanged for another. For example, one USD equals PKR 177. This conversion of one currency to another is called the currency exchange.
It is the rate at which one currency is exchanged for another. For example, one USD will be converted into PKR 177. This difference is the exchange rate.
Currency code is the short form with which you refer to a currency. For example, the currency code for the American currency is USD, and for the British, it is GBP, etc.
It refers to how the money will be delivered. It can include banks transfers, cash pickup and transfers via mobile wallet etc.
International money transfers
In it, money is transferred from one country to another. And usually, the currency used in international money transfers is the USD.
Domestic money transfer
It is the transfer of funds within a country and is generally in the local currency.
Mobile wallet or mobile app
In it, money is moved through a Smartphone app. The sender and the recipient have to have apps installed on their phones to complete a transaction.
Sending limits or transfer limits
It is the limit to which you can send money in a single transfer. This limit depends on your service provider. This limit can be understood in the context of ATM withdrawals. You cannot withdraw beyond a certain amount a concerned bank has fixed in one transaction from its ATM.
It is the service charges your service provider will charge you.
It refers to how quickly your money reaches the recipient. It varies from company to company.
It refers to how safe your money is from online hacking with a particular service provider.
The best method to send money back home
A few credible companies in the world, including ACE Money Transfer, offer the best methods to transfer funds. You can transfer funds through their mobile apps or website from the middle of your comfort zone. And in this fast-moving world, the best method is the one that saves time and offers convenience.
You must look for companies that offer a low fee, best rates, convenience in a money transfer, security, wider accessibility, etc. Draw your comparisons with care and choose your service provider wisely.