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Common Mistakes Clients Make When Sending Money Abroad

International payments are challenging. Because of the math involved, you may be losing money unnecessarily due to poor exchange rates, hidden fees, etc. There are various ways to get the best deal on money transfers no matter what currency you’re using, planning to emigrate, making business payments, or simply sending money abroad to a family member. Here below,, we’ll go through how to prevent frequent blunders while sending and receiving funds.

Delivery Time

This is yet another major blunder individuals make. Many consumers forget to investigate and check how long it takes for the funds to arrive at the recipient’s end. The fact is transfer speeds differ from one remittance provider to the next. Clients can choose between a slower or an express delivery from a number of non-bank wire transfer providers. 

In some ways, the client’s payment method influences the speed with which the service is delivered. When compared to direct bank withdrawals, prepaid debit card payments are frequently quick but slightly more expensive.

Foreign Exchange Rates

Regrettably, the highest expenses are the ‘hidden’ implicit fees embedded into the exchange rate. It might be a difficult concept to comprehend unless you’re a seasoned trader. This might lead to a sense of complacency as well as high exchange fees.

For example, we all know that money for overseas students can be a little tight. The gap in international student spending power between countries is entirely determined by foreign exchange rates. Students travelling to study abroad from nations where the currency is reasonably strong will have fewer issues. 

Students from countries with weaker currencies, on the other hand, would want to keep watch of foreign exchange rates to ensure they’re not overspending beyond their means. Otherwise, they may find themselves short on funds very quickly. 

When calculating transaction costs, the difference between the “real’ rate and the “selling’ rate is an important metric to consider. Use an accurate currency converter tool as a first step. The interbank exchange rate, often known as the “real” rate, is the wholesale rate used by brokers and banks to buy and sell currency. 

When you know this rate, it’s much easier to compare exchange rates and choose the best option for you. Always remember you have a choice. It’s usually advisable to look for another offer if you don’t get a quote that’s within 1% of the real exchange rate.

Inaccurate Account Details

This is yet another common blunder committed by many folks. It’s aggravating to start a wire transfer only to provide inaccurate account information for the recipient. This results in higher fees, as well as valuable time that has to be spent attempting to reverse the situation. You end up giving the sender and recipient a bunch of needless information, such as routing numbers and entire bank account numbers. 

Because the formats and codes required to authorize the transaction vary per country, the reversal process can be quite complicated. If you provide erroneous data, your funds may be routed to the wrong recipient’s account. This will consume a significant amount of time and resources to remedy a mistake that could have been avoided with a quick check of details.

Plan Ahead

While some money transfers are unplanned and urgent, the majority may be scheduled ahead of time. Fees for emergency money transfers are frequently higher, but if you plan regular or future transactions as far in advance as possible, you can often get lower fees. Make preparations ahead of time. 

Furthermore, most international money transfer firms will provide you with a better exchange rate, particularly for large sums of money, which can make a significant difference. However, because many of them have minimum/maximum transfer limits, it’s critical to check and evaluate them beforehand.

Bottom Line

While sending money abroad can be challenging, choosing a trustworthy remittance firm can make it much easier with a lower risk of making a mistake. All you have to do is find a reliable company that offers reasonable, transparent fees and strives to match the mid-market exchange rate as nearly as possible. At Lycaremit, we can provide all that and more. Hence, don’t waste and register with us right now.

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