Four Questions to Ask Before Sending Money Overseas

Whether you're sending money through your localin the amount that actually makes it to your recipient.
bank or post office, through a money transferHow does your Recipient access the Cash?
service, or through a website that facilitates moneySome methods today are so convenient that the
transfers, there are a few key questions that yourecipient can swipe a card at any ATM machine to
should ask to help make the best decision for youraccess the cash that was sent. Other methods
situation.require the recipient to be present in a bank or in
What are the fees?front of a money transfer agent in order to receive
No matter how you choose to send money tothe money. Think about your recipient and finding a
foreign countries, there is usually a fee involved. Themethod that is most convenient on both ends. The
fee can depend on many things, including the amountbanking systems of foreign countries also need to be
being sent and the speed at which the funds need toconsidered when sending cash, as some are more
arrive at their destination. It is common for a fee todeveloped than others.
be charged for sending the money as well as forWhat additional charges should I watch for?
receiving the money on the other end. The fee canThe biggest hidden fee that many money senders
be flat, and is occasionally based on a percentage ofaren't aware of is charged by their own credit card
the amount of money being sent. Fees can also becompany. Several money transfer methods allow for
hidden in the way exchange rates are calculated, soa credit card to be used to send money worldwide.
be careful!What is not always clear is that this is considered a
How is the exchange rate determined?cash advance on your credit card, which can carry
Exchange rates are constantly changing, so it'shefty charges.
important to know when the rate will be calculatedThese fees can be as high as 4% of the amount of
to convert your US dollars to the foreign currency. Ifcash that is accessed, making a simple transaction
your recipient is expecting a set amount, it'smuch more expensive than you might have planned
important to understand whether the currency isfor it to be. This can be avoided by using a debit
being converted at the time it is sent or at the timecard, which taps into money in your checking account
it is received. This can make a substantial differencedirectly.