Whether you’re a traveller, a resident, an immigrant, or an international student, you need to send money abroad from time to time. You naturally want to get the best deal for your money and have it arrive as soon as possible. However, you cannot do that without understanding basic money transfer terms. In this article, we’ll introduce you to some of those terms.
Remittance is derived from the word remit, meaning to send back. In the financial field, it means sending or transferring money to another party (family, friends, or business partners) overseas.
Cash pickup is when the person on the receiving end of the transfer can pick up the money directly at a physical location.
The remittance provider can deliver the money in several ways, such as a mobile transfer, cash pickup, or a direct transfer into the recipient’s account. Delivery methods differ for every country.
The exchange rate is the value of your currency against the other party’s currency. It depends on a wide range of political and economic factors such as inflation, international relations, and war.
Many online remittance providers offer their services through apps that you can download and install on your smartphone. You can send money to another country via an app.
Some remittance providers impose such maximum/minimum limits on a single transfer, and some don’t. Plus, these limits differ depending on the country.
As you transfer funds overseas via a remittance provider, you have to pay some money known as the transfer fee. The fees vary depending on the provider, the speed, transfer method, and amount of money sent.
It pays to know these money transfer terms because such information will help you filter out low-quality providers and narrow down your search to a provider that can provide you 24/7 support, quick delivery, and maximum security while charging affordable fees and providing favourable exchange rates. If you want such a provider, just register at Lycaremit; we’ll show you how easy it is to send money abroad.