Although international wire transfers are fast and cheap, there are some mistakes you can make that can cost you precious time and a lot of money. When you transfer money out of the country, it is essential to pay attention to the transaction details. Below are some mistakes to be aware of before you press the send key to transfer money overseas.
Marian Schembari was a freelance writer from the U.S. when she moved to Germany with her husband. She used money transfers to send income to her German bank accounts. Marian accidentally sent over a thousand dollars to a bank account that wasn’t linked to her account number. The money ended up in someone else’s account. That was a costly mistake because she did not double-check the account number she entered.
While there are many mistakes you can make when sending money overseas, some of the more significant, more costly mistakes to avoid include:
- Getting Account Number and Details Wrong
These details are often required for international money transfers. Although they can be sent in batches, many international transactions require multiple routing numbers. James Dowd, a financial advisor in San Francisco, advises clients to carefully consider their account numbers when transferring money. In Schembari’s case, her account code and bank code were both wrong.
- Not Looking At All Fees
The first is the service fee, which is typically charged when transferring money internationally. The second cost that you pay is the exchange rate difference, which varies depending on the country where the transfer is made.
Most providers mark up the exchange rates they charge to make a profit on a customer transfer. For example, if a bank gives you a favorable exchange rate of $1 to 0.89 euros but gives you a less favorable rate of $1 to 0.80 euros, you would end up with a bill that’s higher than the bank’s fee.
- Not Converting Currency Properly
When making an international transfer, the recipient must have the right currency at the right time. If the transfer is rejected at the other end, the bank might charge a fee or convert the money at a higher rate.
- Going With First Transfer Provider
You should shop around for the best exchange rates and fees when transferring money. Banks typically charge around $42 to send international transfers. Although banks don’t make cash transfers abroad, many nonbank providers do. You can also send money through nonbank websites such as Western Union.
- Not Verifying Delivery Time
Different payment methods and delivery options can affect the speed of a transfer. For instance, using a debit card can be more expensive than a bank transfer. Unlike banks, nonbank providers have wide networks of locations that can pick up the money. They can also charge you for transferring money abroad. Knowing the various options in terms of providers and costs will help you send money the right way.
As you can see, there are many mistakes to try and avoid when making a money transfer internationally. If you want to save time, money and a lot of hassle, it is important to pay attention to the transfer details.