Money transfers are an essential subject for expatriates, migrants and international students. They have to face up to it and find the best solution. The money transfer is a difficult topic, the finance’s world always scares the users. What is true? What is false? Find below 5 myths about money transfers.
Money transfers startups hunt the banks
False ! Money transfers startups are complementary to the bank. Most of the time, you will have to use your bank to send money abroad online. This option is possible only thanks to the bank. It’s only a marketing strategy against the hidden fees charged by banks.
You need to create a bank account to do a money transfer
False! Some providers have a huge mobile and microfinancing base, so you can make your money transfer thanks to your mobile without having to open a bank account.
Realise a money transfer via your mobile phone: a myth becomes real
Operators are substituting to the banks. It results in a deposit, withdrawal of cash and bank transfer services. You can also do an international money transfer whether payment of salary or others.
One service is cheaper than others to realize my money transfer
False ! One service can be the cheapest one to send money from one country to another country but not necessary the cheapest the day after. Indeed, the exchange rate can vary during the day.
The cost of your transfer depends on the amount, the countries and the option that you chose as well. For example, send 1’000 USD from USA to China by bank transfer in 1 day is easier than send 10’000 USD from USA to China so the cheapest solution might not be the same.
Moreover, one service allows you to send money from USA to China but not necessary from China to USA.
It’s true that in general, new services like WorldRemit, Transferwise, Azimo… are cheaper than bank services or Western Union/Money Gram.
It can be free to send money
False! Some banks and money transfer services like Western Union say that your money transfer is free but actually they include hidden fees. They add fees in the exchange rate they apply. Unconsciously you will pay more to send your money.
Before to send your money abroad, pay attention to the hidden fees and feel free to compare every solution thanks to a money transfer comparison tool.
If you don’t have a bank account, you can receive the money by cash pick-up or use a mobile phone service.