What Are The Different International Money Transfer Modes?

By Author: shashank bhaskar
Total Articles: 63
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Earlier, transferring money from one country to another was slightly challenging. You would have to undergo several formalities. It would also take too long for the funds to reach the recipient. But today, you do not have to face such difficulties. Thanks to technological advancements, we have various International Money Transfer methods available. These are electronic payment modes that facilitate international transactions with ease. Want to know more about them? Have a look at the list below:

Wire Transfers

These are relatively new in the realm of International Money Transfer methods. It transmits funds from one country to another electronically. It is also cheaper than most other modes. Hence, it comes in handy when you are on a budget. For example, you want to transfer money from Singapore to India quickly. But you do not want to pay high processing fees. In this case, you can go for a Wire Transfer.

Online money transfers

An online money transfer is the ...
... simplest way to send money abroad. Many Indians use this means to transfer funds to their friends and family living overseas. It is easy to follow through and takes little time to process. You simply need to have the following details ready:

Recipient's Bank Account information
IBAN or SWIFT code of the recipient's bank
Recipient's information

While making online transfers, it is crucial to be mindful of a few things. For starters, such transfers exclude intermediator banks. Hence, they usually levy heavy taxes and high exchange rates. Also, you must submit the correct IBAN or SWIFT code. Else, your transfer can be dismissed.

Automated Clearing House

Automated Clearing House is a digital money transfer system. It is mainly used by citizens living abroad to send money to India. Credit the payment into the recipient's account takes 4-5 working days. Hence, it is a viable option when you simply want to transfer money to your family or friends.
For example, your sister resides in India, whereas you live in Singapore. It is her birthday in a few days. In this case, you can make a money transfer to India from Singapore using ACH. It will reflect in her Account within a week at the longest.

PayPal

PayPal is yet another popular mode of International Money Transfer. It enables individuals to transfer money electronically from one country to another. However, it charges a fee to the recipient and is free to the sender. Ideally, this fee is approximately 3.9% of the transaction amount for international transfers.

E-mail money transfer

In this method, the sender must log in to their bank's website and fill out a form. Then, an e-mail is sent to the recipient, who needs to confirm the answer to a security question shared by the sender. Once they do so, the payment is initiated into their Account.