Each year, billions of dollars are sent by migrant workers to their home countries. As more people find themselves in a situation where they need to transfer money abroad – simpler, faster, and safer ways to do so come to life with the aid of innovative technology.
The act of transferring money from one country to another is called remittance. Remittances are funds transferred from migrants to their home countries. For many developing nations, remittances from citizens working abroad provide an important source of much-needed funds. If you are a foreign worker and are in a situation in which you need to transfer money to your home country, this short guide is exactly what you need.
Foreign remittance according to the dictionary
By definition, foreign remittance is a transfer of money from a foreign worker to their family or other individuals in their home country. In many places, such as the Philippines, remittances constitute a significant portion of a nation’s economic growth.
Luckily, the technology that exists nowadays can offer an online money transfer option, which is becoming more popular because of its convenience, accessibility, and fair market rates. Meaning that in order to send money home, all you really need is access to a smartphone or a computer.
Bon voyage: how does an international remittance payment work?
To send money online with an international remittance service, you’ll need to create an account with a money transfer service. Once you create an account, you’ll have different options for sending money as a remittance payment. You can opt to send money online to a bank account, cash pick-up, or a digital wallet (depending on where you want to send money to).
Hold your horses: how much money can you actually send?
This really depends on the rules and regulations the money transfer service adheres to. Online money remittance services usually have limits on how much money you can transfer at one time or in the span of a certain period. One of the reasons for these limits is to avoid potential fraudulent behavior in accordance with national and international regulations.
So, if you need to send a large amount of money in a short period of time, you should check the limitations of each service in advance and plan your money transfers accordingly.
The details that matter: security, rates, and fees
Security. When you are about to send a remittance payment, the most important thing to check in advance is the level of security that the service you have chosen provides. Choose a company that is known for its security features, and be sure to carefully read its terms and conditions as published on its website or app.
Fees and rates. The next thing you need to check is the issue of fees and rates. Note that while exchange rates constantly fluctuate, fees are usually consistent and are determined by the company.
A quick online search will help you determine which service best answers your needs as you’ll be able to compare rates, fees, and additional possible costs.
Timeframe. Each remittance service has its own limitations when it comes to the timeframe of the money transfer request, the most common timeframe being 1-2 business days for the remittance order to be completed.
If time is of the essence, make sure to also check the time it takes to complete an international remittance order with each service you vet. Note that there are specific circumstances in which the money transfer is made instantly.
In conclusion, sending money abroad can be a daunting experience especially if you’ve never done it before, and especially if you’re a migrant. At the same time, remitting money is an easier task today than it was a decade ago as now you also have technology on your side.