Nowadays, it is common to see people living or traveling abroad to send money back home or request someone to send them money. Before the modern means of money transfer were invented, people used to send money overseas using the following traditional ways, these include cash, check, bank draft, money order. It is worth noting that the traditional methods of sending money overseas were at times slow, risky and in some cases, checks couldn’t work in some countries. The problems linked to the use of these methods resulted to the development of a faster method of sending money referred to as an international wire transfer. With a wire transfer, you can send tens of thousands of dollars at once and convert that money into a foreign currency if you want. In this article, we will be discussing about international wire transfer including the basics, advantages and how to use.
When you want to use the international wire transfer, you first need to read through basics before you authorize any transfer out of your account. There are two main types of wire transfers. The transfers include a transfer from one bank to another using traditional bank networks and an electronic payment using a money transfer service.
The other step to understand wire transfer involves going through the instructions. To send funds using a traditional bank wire you’ll need the following information for the account that will receive the funds, these include recipient bank name, recipient bank ABA number, payee’s account number at the bank, as well as any additional information that one may need to provide.
If you don’t have the above-mentioned information, you will have to ask the recipient and they will have to ask their bank for the details. One of the safety measures when using wire transfer services involves avoiding wiring money based on information you get in an email. The best thing to do when someone send the instructions electronically is to contact the recipient and verify the wiring instructions before moving forward.
For people who want to receive money overseas, they need to first ask their bank for wire transfer instructions. To minimize the risks associated with having money wired to your account, you need to contact the customer service of your bank to verify that you’re using the correct set of numbers and instructions.
Alternatively, one can use cashier’s checks and money order to transfer money. One of the reasons that makes cashier’s checks an alternative to bank wires is the fact they are paid out of bank’s account and are the best option for people who need cleared funds. The other payment procession option that people can use is money order though they are considered not to be as safe as bank wires.