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Many small and large businesses carry out international transactions and transfers daily. The ease with which one can remit money abroad is one of the major reasons why digital infrastructure has grown in recent years.
Suppose you have an online business and regularly send money to Kenya to import certain goods. With the vast majority of online money transfer companies, one can save a lot of money on fees and transfer times.
However, having so many transfer companies around means you need a better understanding of what to look for. There are many factors to consider before choosing your money transfer company.
In this guide, we’ll focus on the most important factors you need to consider before choosing the best money transfer company for your needs:
Factors That Impact the Choice of International Money Transfer Company
The Exchange Rate Offered
Every so often the international money transfer company that one uses to remit money abroad is less than forthright about the exchange rate they offer. Many of them will offer you a lower rate than what they are getting and make money off you. You can prevent that by going with a service provider that offers you an exchange rate that is at least a little higher than the mid-market rate.
The Transaction Fee
While you should certainly choose a service provider that offers you a low transaction fee, you should examine the offer in detail, before you agree to their terms. Some international money transfer service providers will charge you a zero transfer fee but will charge you extra on the exchange fee. This is something that you should watch out for. You should also watch out for any fee levied on money received by the recipient for that would add to the total cost of transfer as well.
The Amount of Money that You Want to Remit Abroad
People remit money abroad for different reasons. Some do it to fund a relative abroad, while others might do it to pay salaries to their overseas staff. The amounts that one needs to transfer abroad may be large or small depending upon who is sending the money. If you are a business person who needs to send large sums of money abroad regularly it makes sense for you to use the services of an international money transfer company that specializes in such payments.
Somebody sending small amounts of money needs to use an agency that specializes in those kinds of transfers. This will ensure that one gets the best terms for one’s particular type of international money transfer.
Speed of Transfer
A business may need to transfer money abroad instantly or in a few days. One’s choice of an international money transfer company is also dictated by the speed of money transfer required. There are international money transfer companies out there that will transfer money instantly, while others will take one to three days. The cost of carrying out these different types of transfers are often linked with the speed of delivery. One would need to make a choice based upon one’s needs.
Just because there is a large number of international money transfer companies competing with each other to offer you the best rates, it does not mean that you zero in on the cheapest. You have got to first determine the level of security that the company in question offers on its transactions. The secure international money transfer companies are there the ones who incorporate encryption, identity verification, fraud prevention, and tracking as part and parcel of their product features.
It makes sense to go with well-reputed brands with a stellar reputation even if they cost a little more, for it is your money that is at stake.