Transfer Money Overseas:
Possible Methods, Advantages
And Disadvantages

We live in a global world; people can easily and quite safely travel to any part of the planet, and do this regularly. No matter if people travel for business or pleasure, they need money. That is why the solutions that help to transfer money overseas are in huge demand, and the demand is growing.

Despite the fact that today there are many ways to transfer money overseas, people lack the full picture of all the methods they can legally use for money transfers. This part of the web site is aimed at showing the most concise and useful experience of overseas transfers.

Bankwire.

This is the oldest way to transfer money overseas. In the old days you should carry special paper issued by the bank, upon showing the paper local bank office was giving the money. Today the procedure is faster and simpler. To transfer money overseas you need to come to the closest bank office, submit a special form, sign it - and the money comes to the bank account abroad.

If your bank gives an option to send transactions online via secured bank interface, you don't even need going to the bank office. Fill out and submit the web form, click the button and money is sent to the necessary account.

Bankwire is reputable and even if the wire is lost, it is possible to recover it as banks don't steal money and track every transaction.

Bankwire is safe, backed with the reputation of banks.

Still, bankwire has serious drawbacks when we talk about overseas transfers.

First of all, bankwire is long. It can take up to 5 business days to transfer money overseas and hit the account of recipient. Though the banks are not sending physical money to the account of recipient, they need to pass through lots of procedures. And if you are not lucky to transfer the money during weekends, the whole transfer can take even longer time.

Then, banks take their fees. It's surely ok to pay certain fee for the help when you really need to transfer money overseas. But today there are solutions when you don't pay for sending the money from one account to another. So, the fees can be taken as negative factor too.

Some of the countries have serious restrictions in accepting the money from foreign banks. This is a big problem with Third World countries. For some strange reason banks in these countries think that processing the overseas transfer for their citizens is a big favor, plus the banks need to break through tons of local regulations that sometimes limit the financial freedom. Add to this that not all people in the countries of the Third World understand the power of having own bank account - and the experience with bankwire as the method to transfer money overseas becomes not so attractive.

Money Order.

Money order is a very convenient way to transfer money overseas. Usually it is a written order for the payment of a specified sum to a person who is indicated in the order. Money order has two portion: one is for the person who will get the money, another is a receipt that is kept for the records.

The big advantage of money orders is that the physical money is paid by the third service (postal service, for example). It means that the sender of money order all of a sudden can have troubles with the personal account, like insufficient funds; but the recipient should not worry as the money is paid from the account of postal service or any other third party that issues the money order. That is why money order is a quite safe way to transfer money overseas.

But there are disadvantages too. Money orders are limited in size. They were created to help transferring "pocket" money, so that money orders don't become the real competitors of banks. That is why if you need to transfer over $1,000, money order will not help you.

Plus, money orders are not accepted in some countries. And if you or your family are travelling to the mystic Third World again, and you need to transfer money overseas now, on the spot - in some countries your money order just will not work.

Electronic Money Transfers.

Under such a complicated name stands a simple service that most of you, perhaps, used to transfer money overseas. Western Union or Money Gram are some of the examples, to make this method visible.

The systems of this kind are financial institutions that have license to run bank-like activity and handle overseas transfers. These institutions manage the payments via their representative offices or licensed agent offices. In practise you can enter the office (usually located in places with nice public traffic), fill out the form, specifying the full name and additional details of the recipient, and hence transfer money overseas. The recipient comes with a passport or divers license and with special transaction tracking number, and gets the cash.

This method of money transferring is convenient, easy and fast. Usually the recipient can take the cash in 15 minutes after the transaction was made.

However, there are restrictions about the size of transfer, again the restriction which affects Third World countries only. Some countries practise a limit of the amount that one person can send during a month.

Plus, electronic money transfer systems take fees for overseas transfers, and fees vary upon the country too.

Check Transfer.

Checks (or 'cheques') help people for a long time. Checks are accepted worldwide, and there is no need to be afraid is someone steals the check while it is sent. The check is issued for a particular person or legal entity, and only this person or entity can cash out the check.

Surely check is a good form to transfer money overseas. However some disadvantages exist. Among them is the possibility of insufficient funds on the account from which the check is paid which is very rare, but can happen.

And another advantage is that in some countries it can take up to six weeks (!) to cash out the check, plus the banks charge astronomical fees for that. So, check is a good way of handling overseas transfers only in case you know that checks are cashed out within civilized standards.

Travel Checks.

Travel checks (another way of spelling is 'cheque') are very convenient for those who are keen on voyaging. It is evident from the name that this method of payment was created for travellers.

Travel checks are issued for a particular person, and look like fancy bank notes with specific sum indicated on each note and defining the value of the check. As travellers are often in the danger of someone stealing the valuables or losing them, one can go to the closest office and report the problem - the stolen/lost checks get deactivated. The most important is to have the ID numbers of these checks written and hidden in a secure place.

Not often people don't use travel checks as the means to transfer money overseas, because travel checks cannot be cashed out, they can be spent in special places that agree to accept them. Still, travel checks can solve some problems with payments, and save some nerves on unexpected overseas transfers.

Debit Card.

Debit cards are very convenient as you can be abroad, have the card with you, go the ATM and after few simple procedures have the cash in your hands, in the currency of the country where you are located at the moment. You can also give debit card for the payment in the places where they have necessary electronic teller devices.

The money is taken directly from the account, so one has to be careful with not going over the balance.

With this type of debit card you cannot transfer money overseas to someone's account. But you save a lot of fuss for someone who might be needing to send you the transfer.

Debit card is nicely protected, and if it is stolen, you just need to call the department in the bank that issued the card, and they deactivate all payments from that card.

Prepaid Card.

Prepaid card is a specific form of debit card, but this form can be a great helper during overseas transfers.

Prepaid card is issued for a specific sum and sent (via regular mail) to the recipient. After recipient gets it, the money from card can be cashed out at the closest ATM. Only the fixed amount set by the sender of prepaid card can be withdrawn which provides a safety on the balance of spent money.

However the policy of using prepaid cards can be frowned upon in some countries, so make sure that you do not venture a person whom you send the money via this way.

Online Payment Systems.

The fresh wave of payment methods was brought when the Internet reached the level when people urged for new payment methods. This gave a birth to various online payment systems. The freedom and convenience is transfers that they offer is sometimes beyond imaginable horizons.

Online payment system are different; their rules, procedures, services differ greatly. But usually this is about some community where people get online accounts and can transfer the money from one account to another almost instantly with low or zero expenses. Online vendors just put on the web site the payment link from that system and people pay the money for vendor's product or services directly to the vendor's account in the system.

One of the examples of this type of systems is e-Gold which is a digital gold currency community that allows instantly transfer gold ownership (equivalent for real money) between the members. Technically it means that you can transfer money overseas to the person that can be on the other part of the globe in a matter of few seconds.

The only drawback is that to fund and withdraw money from the systems of this type you need to resort to the help of exchangers, but reputable online payment systems have lots of intermediaries who settle this problem quite quickly and at moderate fees.

For more information about overseas transfers please read Transfer Money Overseas category of Money Articles directory.