Sending Money Overseas - How To Keep Processing And Transfer Fees To A Minimum
If you need to send money to Vietnam to a loved one, or somewhere else overseas, then you will have a wide variety of options available to you when it comes to transferring money. However, many of the easiest and quickest options require processing and transfer fees. These fees can certainly add up, especially if you are not transferring that much money in the first place. If you want to keep the fees as low as possible, then follow the tips outlined in this article.
Try An E-Transfer
If you want to transfer money from one bank account to another, then it makes sense to ask your local bank for assistance. Unfortunately, if you work with a teller to complete the transfer, then you are likely to be charged an international wire transfer fee. Typically, the fee will be around $40 for an outgoing transfer and $10 for an incoming transfer. This means that the total cost of the transfer will be around $50 for you and your loved one. This fee is charged because several different financial institutions will need to handle the transfer. Your bank, an international transfer business, and the recipient's bank will all need to process the transaction. If you want to transfer money in this fashion, then ask your bank to transfer money in the foreign currency. This is generally cheaper than transferring money in American funds, because the bank usually retains some money due to favorable exchange rates.
If you want to cut the transfer fees in half, then you can complete an e-transfer instead of a traditional wire transfer. This type of transfer is similar to the one you make online when you pay your bills electronically. While the transfer will typically take longer to complete, you may only need to pay $10 or $20 for the service, and your bank will likely process the transfer within a few days. If you decide to do this, then you will need to gather all pertinent information before initiating the transfer. You will need your loved one's full name, their bank account number, and the routing number. You will also need the SWIFT or BIC number. These numbers are international bank identification numbers. The number will include the bank code, country code, and the location code of the specific bank where the money will be transferred to.
Consider A Money Order
If you want to skip the bank, then one of the cheapest ways to send money overseas is with a money order. You can purchase a money order that is worth up to $700 and it can be issued in the currency that you choose. Typically, the current exchange rate will be used so your loved one can cash the money order as soon as they receive it without currency exchange fees. This will cost you $4.75 through your local post office. The post office will send the money order to the recipient through either first-class or priority international mail.
You can pay for the money order by cash, traveler's check, or debit card. You cannot pay with a credit card, so keep this in mind. Be prepared to fill out an international money order form when you visit the post office. This will be different than a domestic form and will require you to fill in the information for the order as well as a receipt document for the individual receiving it. You will receive a receipt as well. Make sure to keep the paperwork, because money orders can be reissued if they are lost. This will require you to contact the postal service's accounting service center with proof that the money order was purchased but not received based on the receipt or a signature.
If you need to send money to a loved one living overseas, then you may see fees piling up if you do this regularly. Thankfully, you can easily keep the fees down by choosing an e-transfer or money order. You can also work with specialized money services businesses, so make sure to check with one of these companies about their fees as well.
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