Why choose money transfer companies over the bank

Money transferring have become a frequent requirement of people not only people who work abroad want to send money home, but most of the people have to send money to their business associates in abroad or make payment of international staff or freelancers. International money transfer is not just one time equipment and the regularly needs to send money, hence the best solution to send international money transfer is most important to save time and money.

Earlier people only had the option of Bank for overseas money transfer, now there are number of alternate solutions available,  but money transferring service providers are the most preferred option to send money. Even there are various benefits of transferring funds from moneytransferring service providers,, but some people still prefer banks to send money, because they are very familiar with the process even if it is ime consuming and have to pay high transfer fees. Also, they feel their amount is secured when they send money from bank banks. Money transfer companies are provided with an authorized license to send money from the regulatory of the specific countries, that assures your money is secured.

 

Here are some of the reasons that will help you understand why money transfer services are best compared to over banks.

 

Transparency: the most important factor that matters to the customers these days are transparency in the transaction, the hidden fee is the main reason people opt for money transfer services over the bank. At Banks, the hidden fees eventually get
applied after the transaction has been made and the fees are deducted from the
recipient’s amount. International  Money transfer companies makes sure to provide no hidden cost money transferring solution with complete details before initiating the transaction. Customers can check on the money transfer company’s website what exact rates will be applied, the amount received will receive. The fees and what amount his recipient will receive. Money transfer companies also provide, with the details on time or days it will take for the recipient to receive the amount. 

Better Currency
Rates:
The currency rate is the major concern when transferring money internationally, a small change in money transfer rates makes an overall impact on the amount which the recipient will receive.   Money transfer companies makes sure to offer best exchange rates, most of the money transfer providers do not add any extra margin on the currency rates that helps receive best rate in the market. Transfer Money at Low

fees: There is always high fees charged by banks send money overseas which make the sender reduce the amount he is sending to his family or surprisingly due to the high cost charged by the bank it later gets deducted from the recipient’s amount and the recipient do not receive the exact amount which they actually wanted to send him.

 Money transfer companies charge very low fees compared to banks.  They have either very small percent fees or flat amount of fees for limit upto a certain amount you are

sending.  Saving on money transferring rates makes big difference in an overall transaction especially when you send a hiuge amount or you have transfer money overseas frequently.. 

Send Money Instantly:
When you choose to send money from money transfer service providers, you do not have to wait for days or deal with bank holidays and weekends. Once you make a transfer your recipient can get money with hours or just within 2 days. 

You just need aninternet connection for smooth transfer: The money transferring process is very simple you can simply send money if you have access to the internet. As you know not all banks provide easy internet banking solutions.  Once you check the rates and details you can select the money transfer provider and register with them, your account will
get approved instantly after you add your identification details and you are free to transfer money internationally.

 

Best customer support: Money transfer companies always have a special customer support team in place to assist customers in creating your account and getting account approved, They also help understand the status of transfer which is hard to receive any support from the bank on the phone or email mentioning the transfer details unless you visit the bank.  When it is about hard earned money you send best customer support is always needed to keep you updated on the status of the transfer.

 

Discount and Promotions: money transfer services always offer their clients a great discount offer that can be applied in the transaction and it makes your money transferring fees more lower. you can either get a coupon discount offer or also on the holiday season. 

Hence the customer has made money transferring service providers their first choice over banks.

How NRIs Can Save On Money Transfer Fees & Get Best Exchange Rate

Sponsored by: Xoom, A PayPal Service

Non-Resident Indians (NRIs) around the world sent a total of $83 billion to India in 2019, as per a World Bank report

NRIs often pay a heavy price to send their hard-earned money. In 2019, the average cost of sending $200 to India was 2.9% of the amount sent according to the World Bank data on remittances. On average, NRIs spent close to $2.4 billion in just fees and charges to send money home in 2019.

According to the data above from the Reserve Bank of India, family maintenance and savings constitute a majority of the remittances sent to India along with money sent for investment purposes. The money spent on avoidable fees could have benefited the loved ones instead. In this blog, we will break down the various costs associated with sending money to India, and tips for saving on money transfer fees. 

Cost of sending money 

There are 5 main factors that impact the cost of sending money: 

  1. Exchange Rates 
  2. Speed of Transfer 
  3. Payment Method 
  4. Transfer Fees 
  5. Transfer Amount 

Exchange Rates 

Traditional money transfer service providers like banks and money transfer stores make money by marking up exchange rates and transfer fees. It has proven to be expensive and time-consuming. 

As exchange rates fluctuate depending on market dynamics, make sure you compare the exchange rates before sending money. Xoom, PayPal’s digital remittance service, offers competitive exchange rates when compared to other digital remittance players, and even more so when users send higher amounts through Xoom. For example, for transactions to India, Xoom offers competitive exchange rates on transfers over USD $2,000, and the best Xoom rates are for amounts USD $10,000 and above.

Speed of Transfer 

Speed is a key differentiator while evaluating money transfer services. The speed at which your money transfer reaches your recipient depends on the money transfer service provider, your recipient’s destination, your preferred payment and payout method. We have compared the top money transfer service providers for online money transfers from the US to India.

Just like Xoom’s brand ambassador Usain Bolt, Xoom is a speedy option within the money transfer industry. Transfers below 2 lakh rupees will reach your recipient in India typically in minutes, and high-value money deposits above two lakh rupees for both cash pick-up and bank deposit arrive typically within two hours – without having to wait for transactions to be processed during typical Indian banking hours. This includes most major Indian banks such as HDFC Bank, Axis Bank, ICICI Bank, and State Bank of India (SBI)

Payment Method 

Your cost of sending money also depends on your method of payment. You can send money overseas using multiple payment methods: 

  • Online
  • Bank Wire Transfer
  • Debit Card
  • Credit Card
  • PayPal 

SinceXoom is a PayPal service, customers who already have an account with PayPal can also fund their Xoom transfers to India with their balance, and they don’t pay a Xoom transaction fee if they send $1,000 or more.

Transfer Fees and Transfer Amount 

There is a direct correlation between your transfer amount and the transaction fees you are charged. Think of it as the average cost of a can of coke from the major retailer near you vs. buying in bulk from a big box retailer. The higher the amount, the lesser you are likely to pay in fees.

A Reserve Bank of India (RBI) survey found that private sector bank charges on money transfers can go up to 12.6 % for money transfers to India under $200. The cost of remittances through digital remittance services is competitive vis-à-vis high street banks. Which brings us to Xoom, a digital remittance service. Let’s look at the transaction fees to send money through Xoom:

  • $499 or under  $2.99
  • $999 or under  $4.99
  • $1000 and above  $0.00

Below we have compared the transfer fee of sending $1000 from the US to India charged by top money transfer companies vs. Xoom. 

New Money Transfer Rules In The UK From June 30, 2020

For UK residents, the way they send money is going to change as part of new anti-fraud safety measures. The new scheme is in an effort to combat fraud that costs the UK more than £130 billion per year and to protect consumers from fraudsters from duping people into sending money to the scam accounts. 

Starting 30 June 2020, six biggest UK banks; Halifax, First Direct, RBS, NatWest, Nationwide, and Santander will have the new system in place. Other players like TSB said they will also follow suit and implement the new system by October 2020.

What are the main changes? 

Name verifications: Senders will be able to ask banks to conduct a name check before you send out any money.

Banks will verify if the name on an account matches the name of the person you are sending money to. In case the bank is unable to verify, you will be notified before any money is transferred, and you can stop the payment.

However, the new system will only work if both banks you are dealing with are registered.

Confirmation of Payee: The new system for bank transfers, known as “confirmation of payee” was first introduced in October 2018 and will become law in the UK on 30 June.

Currently, banks do not have to verify the details of the recipient’s information. This is a loophole that scammers have been taking advantage of. For example, one can pose a prince and dupe vulnerable people into sending money to a fake account. The new rule will combat address this loophole.

In addition to the 6 aforementioned banks, Barclays, HSBC, and Lloyds Bank are among the banks that will start conducting name-checks when money is being sent to third party accounts.

CHAPS: The new rules will also apply to faster payments like the Clearing House Automated Payment System (CHAPS) is a real-time gross settlement payment system used for GBP transactions in the UK.
It is important to note that the new rule is not applicable to international money transfers. Here are 6 tips to protect yourself from an international money transfer scams. We have seen a rise in financial frauds and scams during this pandemic. From magic potions, remedy cures, to love scams. Here are some tips to protect yourself from a financial scam. The golden rule of thumb is that if it is too good to be true, it is a scam.