As the global economy continues to expand, and more job opportunities sprout from all around the world, many individuals find themselves having to travel overseas in order to support their families, as well as to pursue their dreams and aspirations. And for the many families of whom have members working and living on the opposite side of the world, the term “remittance service” may be all too familiar to them, and may in fact be an invaluable part of their regular lives. If you or any loved ones ever plan to find work in another country, then it would be for the best to start familiarizing yourself with remittance transfer services, and know what they are all about.
What is a remittance transfer?
A remittance transfer is simply the transfer of money internationally through electronic means, allowing one to send money to others from across country borders easily and quickly. A common way to transfer funds worldwide is by using an online payment service; and yet, while popular online payment platforms such as PayPal and Paxum make use of money transfers mainly for paying for goods and services bought online, remittance transfers are mainly used by migrant workers to send money to their families back home.
A remittance transfer is a fairly simple transaction process, and yet it is not only convenient but it is also very fast. Families need not wait for days or weeks to receive funds – funds that of which are essential in order to buy basic amenities such as food and electricity, as well as being able to seek for and get medical care.
Ways to send a remittance transfer
There are three main ways in which remittance can be sent. Each method has its pros and cons; as such, find and choose the option that best fits your situation and needs.
Money Transfer Services
Financial service providers such as Western Union and MoneyGramoffer money transfer services for clients from all around the world. There is no need for someone to deal with complicated transaction processes and long waiting times; all one needs to do is to visit a nearby provider location in order to send and receive money. Migrant workers mainly use these services since they are very convenient and flexible remittance transfer options.
Cheques and Money Orders
One can also send money through cheque or money order. They usually take longer to send money than through money transfer services, but both options are great in order to avoid exorbitant fees due to sending a large amount.
Finally, banks can also provide remittance transfers- but not all banks are easy to locate in different countries, and thus may not be as convenient of an option.
And that’s mainly it. Do note that all of these institutions charge fees for their services. Oftentimes, a percentage based fee is charged based on the amount of money to be sent; however, options such as money orders only require a flat fee. Consider the amount of money to be sent, and decide on which option to use based on that.