Whether for business or personal matters, when you need to send or receive money abroad, knowing which platforms to use is important. With options out there like wire and bank transfers, ACH debits, and the use of person to person applications, you can send money anywhere in the world within a few days. As convenient as these services are, however, most aren’t fully aware of where their money goes once they hit send. Here are a few details on how some of the most commonly used international payment methods work.
Wire transfers are electronic transfers of money from one person to another, typically using a bank or money transfer service platforms, such as Veem. It is one of the most commonly used methods of sending and receiving money from abroad. When you decide to send money to someone overseas, the money never physically leaves your account, nor does it happen instantly. The funds must first be verified and then sent to a foreign country’s financial processing system prior to being deposited into the sender’s account. While domestic transfers can happen the same day, international payments can take a day or two.
Money Transfer Services
For senders or receivers who prefer to complete wire transactions in person, there are money transfer services provided by companies like Western Union and MoneyGram. Using cash, credit, or debit, the sender must complete a form including information on where the wire transfer should be sent. There is generally a fee associated with the transfer. The wire transfer is processed and the sender can visit the designated location to retrieve the funds.
Automated Clearing House Transfers
Used when transferring money between bank accounts, Automated clearinghouse or ACH transfers are another option you can use. Keep in mind, however, with this option, the sender will have to wait several days for the funds to arrive as they have to first be cleared by the bank before being transferred to the sender’s account. There is, however, some form of protection with this method as payments can be reversed in limited circumstances.
Mobile Apps and Person to Person Payment Tools
There are other payment options you can consider when trying to send money abroad. Online payment gateways like PayPal and other service providers will complete electronic transfers using funds from your connected checking, credit, or debit account. Though not considered a wire transfer, it is another way to electronically send money anywhere around the world. There are associated fees for each transaction, and speed will depend upon the method of payment used and where the money is being sent.