According to UN News, in 2018, almost 200 million migrants have sent the money back to their home countries. With the development of money transfer operators, the migrants are using smartphones to send money quickly online.
As soon as the use of transfer services prevailed, the issues and hurdles came across. Time to time the entrepreneurs invested to take their companies to heights. The most used service these days have worked on transferring the money just in seconds.
The money transfer no longer takes months to complete. But still, various concerns exist. Customers can not choose services blindly. Trusted options are selected again and again. The service users:
- Overseas workers
- Students studying abroad
- Family & friends residing abroad
- Businessmen also use these services.
They prefer the method which suits their individual needs.
The security is one of the biggest concerns in online money transfers. Where you are sending the money and how you send the money depicts a lot about safety. A few following points can help you in making the transfers safe and secure:
- Select the application that is trusted by many. The transfers who have many users can be reliable. Reviews are available on the search engines. Other case is the popularity among the people. A reliable method once used, helps gain the customer’s trust for the next transaction.
- The internet connection’s security is an essential step for safe transfer. The hackers can easily track. They can trap the amount and sensitive information via the internet cloud.
- Fake agents and emails claiming to be the support from the official organization should be ignored. Even any kind of suspicious activity can make things worse. Any unknown activity should be blocked. Consulting to the respective firms can help in this issue. Special emails have been designed for noticing the fraud cases.
- To ensure the security, make sure the firm or organization is registered with the authorities. Another point is that it is being regulated by the regulatory bodies of the respective country.
- For example, ACE Money Transfer is a part of the Aftab Group of Countries. UK’s FCA i.e. Financial Conduct Authority regulates this online money transfer service. ACE Money Transfer is also regulated by HMRC – Her Majesty Revenue and Customs. It doesn’t support fraudulence and money laundering. Any suspicious acts can be reported to the higher authorities. Residence and identification proofs are provided as a key part of the process.
The cost of an online money transfer is an issue for the customers who care more about the money. Such price-sensitive customers will think about the transactions happening at a lower price. Exchange rates are crucial to send money globally. The services offering the best exchange rates pave to way for more customers.
Some organizations have hidden charges. Thus, they play a major role in the selection of a service. A service user expects the cost mentioned as the fee and the exchange rates. After deduction, you will get to know that the cost is significantly higher. These hidden charges lose customers’ trust. It is one of the biggest concerns to send money online.
Most of the services provide the facility to calculate the receiving money online. Near about, a 7% rate is the average fee for using online money transfer operators. Due to this pressure, banks have decreased their transfer costs as well. Still, banks are looking to lower the fee.
The recipient’s country is of great importance. If you want to send money to Ghana, not all of the service providers will do the process. Most of the time, the cost of the service depends on the destination place. The cost of sending money from the USA to Bangladesh will be different from that of Ghana. The money can be transferred to the:
- Bank accounts
- Digital wallets.
- Debit cards deposit
- Cash pickups.
Cash pickups are common in developing countries. This is why the preference for low or poor income countries is to develop certain routes for cash pick up service. Agents are a popular medium in these situations. Other services may include delivery service at home. Some extra charges might be applicable.
Rules and regulations change country to country. Over a certain amount, taxes are applicable. In the case of global transfers, make sure the legal requirements of the country fulfills. Hence, the customers should take information regarding their home country requirements and the receiver’s country.
The currency varies in different regions of the world. The receiving country has its currency. To estimate the receiving amount, exchange rates are the center of the process.
The receiver’s currency might affect the transfers’ ratio. 1 Pakistani rupee equals to 0.0049-pound sterling. It is always desirable to calculate the amount. From online calculators, the transferred amount can be estimated.
Western Union has the facility of cash pickups in the desired currency. Western Union operates globally. It has almost 120 foreign currencies to convert. The process takes only minutes. The receiver can take the converted currency at agent locations.
The limit of money transfer plays a key role in the selection of online service providers. Remitly offers 20000$ as the maximum limit. Minimum and maximum limits make the usage lesser. The businessmen prefer the method of sharing huge amounts. Their selection can be an online website or a bank or even check transfers.
A few examples of money transfer operators MTOs are:
- Western Union
- ACE Money Transfer
- Ria Money Transfer
The customer’s concerns regarding online money transfer services have presented a lot of problems. These problems are under the discussion and keep on solving time to time. An increasing amount of organizations is available here and there.
A company should not compromise on the quality of the money transfer. The one who keeps updating its services is surely the future. The issues like cost, distance and time have been resolved on the next level. The security of the transfers is an ongoing issue. The companies are working on it to make more secure transfers.