Do you know how people used to send money to India and other parts of the world for trade in the ancient era? The world has never been as interlinked as it is today. The origin of trade between different parts of the world and regions can be traced back to the roots of humankind. Still, the magnitude of business and the level of interaction between masses today is unprecedented. The setup works as billions of dollars exchange hands per annum to keep the economic activity going. The money that gets transferred can either be sent by some migrant worker to support his family or by some businessman in exchange for vital supplies. However, the problems that one faces get bigger with the amount of money that needs to be moved. In order for the transfer to be smooth, a number of options provided by various financial institutions should be considered. Let us discuss a few such opportunities in detail.
Moving large amounts of money can be convenient through a bank-to-bank transfer, i.e. the sender can directly move money from his bank account to the recipient’s bank account. This can be accomplished in a variety of ways., i.e. over the phone or in-person, depending on what the bank offers.
Note: Please confirm the charges applicable on the transaction and vary with the amount to be transferred. Do compare the costs with other channels to choose the most optimal solution for money transfer to India and other countries across the globe.
Once decided, the transaction will further involve routing numbers for both the banks between which the amount is to be moved. Apart from the transaction fee, one other thing that should be considered is the exchange rate being offered by the bank. This is because of the fact that banking institutions also rely on the exchange rate to further their income, which in turn will be an expense for you.
In a wire transfer, money is moved between banks through an electronic transfer through a secure channel overseen by a number of financial institutions worldwide. You can say you send money to India online through your mobile application or the service provider’s official website.
Wire transfers offer an efficient network to move large amounts of money. It offers speed and security, thus allowing people based in different geographical locations to actively participate in global economic activity.
The process involves the sender paying the transaction fee to Bank ‘A’ along with the recipient’s details, i.e. name, account number, and the amount that is to be transferred.
Let’s say the sender wants to move a large amount of cash and that too, between different geographical regions. This can be done with the help of international money transfer chains, such as Western Union or ACE Money Transfer. There are also multiple Fintech companies such as PayPal and Payoneer present for the same purpose. The process works with the sender depositing the amount at Branch 1, and the recipient can withdraw the converted amount from Branch 2, i.e. the nearest to him.
Note: Let’s say you want to send money to India, you should check:
- the money transfer rate to India
- the exchange rate
This is important because there might be hidden charges involved. The sender should check with multiple money exchange companies and their money transfer rate to India before closing the deal.
Prepaid Debit Cards
A prepaid debit card can also be used to send money abroad. The process involves the sender depositing the amount to transfer into a prepaid debit card. The receiver, using the prepaid debit card, can then withdraw the amount at his end.
The different money transferring channels discussed above have their own pros and cons. These pros and cons should be compared with the circumstances of the parties involved in the transaction. For a person who wants a low-cost solution, using a bank-to-bank transfer is ruled out as the transaction fee plus the exchange rate can turn out to be unfavorable. A person who is in hurry and wants a secure means to transfer money will surely go for the wire transfer that is online money transfer to India or somewhere else. Similarly, a person who has cash in hand and wants to transfer asap will try to get into an arrangement with the money transfer companies of Fintech firms.