Money Transfer Tips

 

To help you get the most out of your money transfer service, we've put together some useful tips to help you save money, time, and make it more convenient when you send money.

Ideas to help you save money - money transfer

Below are some easy tips to keep in mind when you transfer money home.  Take advantage of market trends and the competition that have added more choices than ever - here's a short list of ideas:

"Save money with delayed transactions"

While some people need to send money for an emergency and require the immediacy of a wired transfer available within minutes, the majority of senders are transferring money home on a regular basis.  If you have a little flexibility in your schedule, or can plan ahead you can take advantage of delayed transactions.  Both Western Union and MoneyGram offer these options - its the same money transfer service but instead of it being available within minutes its delayed overnight or staged over 2-3 days.  In some instances its routed directly to the receivers bank account.  Savings can be substantial - often in the 10-25% discount range depending on how much you're sending.

 

"Take advantage of direct to bank savings"

Just about every money transfer service option available now offers direct to bank options.  Check with your family if this is a method they can support - and there are some straight forward requirements to integrate with their bank.  Not all countries are eligible, but its a great option.  No need to receive cash at an agent location - have it deposited directly to their bank account.  The money transfer companies love this option too as their risks are lower with repeat customers and they pass along savings from not having to pay high agent commissions since it goes directly to the receivers bank account.

 

"Make it easy for your receiver to get paid."

The cheapest option isn't always the best.  Some of the alternative payment choices have hard to follow processes.  Others require several steps to receive funds.  Be sure to list the correct receiver information by name and city, and add a security question when you have the option. 

 

"What out for hidden exchange rate fees"

Just about all of the major money transfer companies make extra money for themselves by making it hard for you to see the exchange rate they convert your US Dollars from into local currency.  Some set rates directly from the open market settings, while others set their own foreign exchange rates (always higher than the market rate).  Check the exchange rates they post during your transaction.  Compare those rates to true market rates -- including those listed on sites like XE.com

 

"Shop the Competition"

The market for money transfer companies is incredibly competitive.  Its also huge and there's plenty of room for competitors to do a great job in areas either ignored or over priced by the market leaders.  If you send money regularly you could save a substantial amount on fee's.  Particularly intense competition (and opportunity for you as the sender & receiver) exists in markets like India, the Philippines, Mexico, and throughout Latin America.

 

"Different prices for differing 'send' locations"

The money transfer companies set the fee price you pay to send money based on a number of factors - one of which is often your location.  Its not just your country, but in many cases your State, city, zip, or DMA you live within.  Someone sending $200 to the Philippines from San Francisco may pay a measurably different fee than someone sending the same amount from the next city 50 miles away depending on flexible pricing the money transfer company happens to be setting or responding to from competitive factors.  Shop around - test send locations and options.  You may be able to save based off of a shift in your location when you originate your money transfer.