Transferring money abroad can be daunting because there are so many to choose from. Before you make up your mind how to transfer money online you will need to ask yourself some of these questions:
Which money transfer company should I choose?
Money transfer companies are a perfect way to send small amounts of money abroad in a fast manner. Most services can send money on the same day compared to other means of getting money abroad which can take 3-5 days. An important thing to remember is that all of these companies charge different fees. Their charges may vary depending on the country that the money is being sent to.
It is important to note that most companies charge the recipient for withdrawing the money. So if you want to make sure that they receive the full amount of transfer money online, then you may have to cover these charges yourself. Before signing up, make sure that the recipient has all the necessaries that they may need to receive an online transfer such as a bank account, internet access or I.D.
Is the money I send protected?
It is important that you choose a money transfer company the FCA regulates. (The Financial Conduct Authorities ensures that financial institutios like small payday loan companies and direct lender are safe.) Their company website will display their authorisation with a logo or a copy. All companies that transfer money online and operate in the UK need to be authorised or registered. An authorised company can offer you some safeguards for your money. Your money has to be kept separate from company funds. This means it can be given back if the firm goes bust. Authorised companies are not protected by the Financial Services Compensation Scheme as banks are when you transfer money using them.
A registered firm may safeguard your money. However, is not required to do so by law. For the FCA to register a company, they only need to show that none of its managers has been prosecuted for financial crimes and that they are based in the UK. An authorised firm will offer more protection. Therefore, make sure that you check them out before handing over your money. You can check the FCA website here.
Will I be able to check on the progress of the transfer?
Many online companies have apps for their customers to use. This means they do not have to continuously call the recipient in a foreign company to check whether they have received the funds. The app notifies the customer at every stage of the transfer to let them know exactly what is happening. If you need the money to be in place very quickly make sure that you choose a company with a next day service as some transfer services can take days for the money to get to its destination.
Should I go for the cheapest company?
You should use the cheapest company to send money abroad. However, it is really important to know exactly what you are paying for. You will notice that many companies will use hundreds of words to explain their fees that can sometimes leave you more confused than when you started to explore the process. The mix of exchange rates and fees for everything can be really tricky to negotiate so it is really important to check how much of your money will get to the recipient. It is vital to compare the market to get the best deal for you.
How can I keep my personal data safe while online?
Transferring money online
Using the internet safety is of the utmost importance when people are entering their personal details online. Transferring small amounts of money fast is cheaper with a transfer money online company but some countries are more expensive to send money to than others. It can be confusing to work out exchange rates and fees on company websites so it is vital to check the final figure after everything has been deducted to see how much money will reach the receiver.
Authorised companies offer more protection than FCA registered companies who are not obliged to return their customer’s money if the business were to run into problems. If they could not return the money then authorised and registered companies are not covered under the Financial Services Compensation Scheme. People who have problems may contact the Financial Ombudsman Service to investigate and try and get a refund on their behalf.