The ever increasing need for efficient money transfer services has led to an increase in the number of companies offering these services. With an industry growth rate of 10-12% a year competition is set to increase. The main reasons behind this continued growth are globalization, increasing levels of migration and new and improved technologies, such as money transfers via mobile phones.
Indeed the industry segment regarding money transfers through mobile phones is estimated to become worth $8 billion in revenue by 2012 a massive increase from 2006 where the figure was only $10 million.
Of course with ever increasing demand for money transfer services and new companies joining the industry all the time it would be easy to get caught out and not get the best deal for yourself. With that in mind here are a few tips for you to consider:
1) If possible think ahead. You can often gain lower money transfer fees by using delayed transactions. All this means is that instead of the money transfer going through immediately you have to wait a few days (3-4). This may reduce the cost by up to 25%. Although not ideal for emergencies for regular senders of money this may well be your cheapest option.
2) Keep safety in mind especially with many new companies entering the industry all the time. A few questions to ask to check they OK OK and test the waters would be:
What exactly is the exchange rate being offered, How is the money transfer fee worked out? How will the receiver be able to collect their money? When precisely will the company have the funds available for you?
3) Don’t get caught out by hidden exchange rate costs. Make sure you are absolutely sure what rate you are getting and how this compares to the normal exchange rate on the high street and in the papers. A common tactic to lure customers is for advertisers to say they have no money transfer fees, of course this maybe true but you may well lose out by more than the transfer fee when taking into account a poor exchange rate.
4) Watch out for the hidden details which are in the small print. It maybe that you will be charged more than expected. For example some companies charge more when sending to and from different locations and this is not always clearly advertised or communicated to the customer.
5) One of the simplest ways to compare money transfer services is to ask the company: Exactly how many dollars, pounds or whatever will I actually receive for my currency after the money has been transferred overseas?
6) For safety reasons it would be advisable to transfer large amounts of money by the use of the banking systems wire transfer system. Every customer has to show verifiable identification such as passports to open an account and the money is sent using a highly safe and secure encryption system which is difficult for anyone to intercept and make use of.
7) Try to avoid transferring money using a credit card as you may possibly incur a cash advance fee as well and thus increase your costs further. Of course you should also make sure you retain all reference numbers, receipts and so on just in case there is some sort of problem, at least then you would have some proof that you did transfer money overseas.
8) One option worth considering to save on money transfer fees would be to start-up a joint credit card account. The intended recipient should take the credit card with them overseas and can then use this abroad whilst the sender would simply pay the bills each month or load up the card for them. Of course first priority would be to find a credit card company that offers a cheap overseas fee.
9) Take advantage of the competitive market and 상품권현금화 shop around! Check a variety of companies first and see which ones offer you the best deal on your money transfer.