Things You Need to Know About Money Transfer Services
Millions of people send billions of dollars to families, friends, and relatives abroad each year. With the growing popularity of online remittances, the senders' costs with the competition of money transfer services have been decreased and others even offer free fees. In addition, the federal consumer protection regulations require them now to provide a prepayment disclosure of exchange rates, fees, the amount of foreign currency to be delivered, as well as to try to resolve errors and disputes among their customers. Extra hidden fees are now strictly prohibited from these companies.
If you're a sender, make sure to prevent consumer fraudulence since scams and consumer fraud also happen in the money transfer industry. Common scams include lottery, love online, fake merchandise websites, and phone blackmail where scammers or fraudulent people ask their victims to use money transfer services once they had fooled them. You can truly prevent consumer fraud by weighing in if it's right to send money in order to receive a lottery prize or a promised hefty payout, the answer is absolutely not!
Avoid meeting people online offering a personal relationship only if you start sending money. Never send money to receive any merchandise to an unknown or new website that has promised to send you the goods after they have received money from you. Make sure not to send any money to someone you don’t know or whose identity you can’t even verify even if they are informing you that they know your family.
Most money services allows you take money from your bank account and deliver it to your recipient's bank account as well. These transfers can generally be done online or by phone if you'll be able to provide the recipient's correct account and routing numbers. Bank wire transfers can move money from one account to another, but this kind of service often has higher fees too.
Other services, such as westernunion.com
, using a credit or debit card can speed up the time it takes to send the money, compared using a bank. Although using any of these cards could also cost you more than paying with cash or through a bank account, plus you may receive an extra credit card fee from your issuer, and this will also depend whether your transaction was processed as cash advance or a purchase.
At westernunion.com, senders can avail of their mobile wallets too that can be used to make purchases, pay bills, and get cash, treating it like an electronic debit card. They have been in business for a long time and take your privacy/data seriously and has partnered with major banks and leading retailers as well. They are regulated by both state and federal government agencies.
There are money transfer services that send funds through a prepaid debit card that the recipient will be able to use for cash withdrawals including purchases. Most recipients enjoy these benefits since the card can easily be refilled by the sender using a debit or credit card, a checking account, direct deposit or even cash, and the money can be available within a few minutes although the fees can become higher too.
With the help of portable gadgets these days, even cell and smart phones can become a browser to access any money transfer service's site online just like tablets and computers. Other senders even use a PayPal downloadable app for the iPhone, and android. In this way, the sender can text the money from his or her PayPal account using the recipient's phone number or e-mail address for free. Make sure that the recipient has his or her PayPal account in order to access as well as receive the money.
As the sender, you can determine the best value by comparing the exchange rates and fees. The best deal is if you can avail of a higher exchange rate, lower fee plus an additional promotion like receiving free gift cards. Read reviews about the company that you are looking to use by the very people who had availed of their service. Once the money transfer service has lots of complaints, then better look for another one before you'll become a victim of their fraudulent ways.
Double check your recipient's contact information because if the name and address you use don't exactly match the ID that your recipient will be using in order to claim the cash, then the company has the right not to release the money too. Once you complete any transaction, double check the receipt to verify everything. Inform your recipient the exact amount that you were sending and provide the transaction number as well as other information required for pickup for an easy and smooth transaction.
As the sender, you have to check if the money has arrived at the right time and in the correct amount. If something goes wrong, contact the service immediately and if they can't resolve any of your concerns, you can complain to the state agency that regulates these companies including the Consumer Financial Protection Bureau. Always keep your receipt because this is your proof or evidence that you had dealt with their remittance service.
You can save when sending money abroad. If it's not an emergency, avoid paying extra just to get the money there a few minutes compared to a few days through you bank account. As much as possible, send dollars to dollars if the service is offering it. Most of the times, sending in dollars will become more higher when converted to the local currency. Let your recipient inquire first to check conversion rates offered by local companies nearby so that you save. Try not to send too often to avoid extra transfer fees as well. Do not use automatic transfers every month because some of those transfers could happen when the exchange rates are very low.
Research the best service cost and select the most trusted money transfer service provider. Pick the one with the nearest, safe and accessible locations for your recipient. A service provider with many local locations generally offers easier and hassle-free retrieval of cash. Verify if the money service business is registered with the Department of Treasury and licensed as a money transmitter. It's also important if they partner with many of the largest and local banks in the country where your recipient is presently residing.
