If you’re sending or receiving money across international boundaries, then you’ll face a little bit of extra complexity and risk. In order to minimise the likelihood of a problem, and lessen its impact, it’s worth adhering to a few simple principles of best practice.
Understanding the Transfer Process
International bank transfers are among the most popular ways to send money abroad. These come with special conditions that might vary depending on your bank. You’ll need to verify your identity before you can send the money, which might mean arriving at the bank with your driver’s license. If you’re sending money digitally using your phone, then fingerprint or facial recognition might be all that’s required.
To identify the receiving account, you’ll typically need an IBAN, or International Bank Account Number. You’ll also need the Bank Identifier Code (BIC) or SWIFT code of the beneficiary’s bank.
Expect to wait around three to five working days before these go through.
Cost Considerations
The cost of your transfers will be influenced by a number of factors. If you’re performing a currency conversion as part of the transfer, then you can expect to be charged extra, even if the fee is concealed. Your bank might also charge you a fee to cover its administrative costs. Any intermediaries will also take a cut: the more intermediaries, the greater your losses. What makes this more complex is that often, intermediary parties to a transaction are concealed from those at either end of it.
Ensuring Compliance
Different territories come with different regulations when it comes to money transfer. The costs imposed by regulation are often reflected in the fees charged by the banks, which must adhere to them.
If you fail to adhere to the regulations, then you risk your money being seized. This can be a particular concern if you’re sending money in parts of the world with which you’re unfamiliar.
Choosing the Right Transfer Method
Traditional banks aren’t the only option when it comes to international money transfers.
Often, digital alternatives to traditional banks come with significantly lower overheads. This can allow them to be quicker and cheaper. Bear in mind that exchange rates can vary by the hour (or even by the second), so it’s worth looking at your options for every transaction – and finding a convenient, fast way to do so if you’re going to be sending or receiving money in this way on a regular basis.
