How to Transfer Money Overseas: 6 Safety Tips

Whether you’re paying remote freelancers, doing business with foreign clients, or transacting with suppliers abroad, overseas money transfers are bound to be a regular task. 

There are various methods of sending money overseas—money orders, bank drafts, and cheques. However, overseas payment is the fastest and safest way to send money to a foreign currency. This method allows you to remit payments with ease while offering better value for your money.

Since you might have to process multiple overseas payments, it’s crucial to know the best and safest way to do it; you wouldn’t want your money ending up in a stranger’s bank account, after all. Hence, we list down essential tips for safe cross-border money transfers.

6 Tips to Safe International Money Transfers

Being strategic about your money transfers can help protect your business finances while speeding up your transactions. Here are six tips to help you execute the transaction securely.

1. Choose the method that suits your business requirements

There is no one right method of wiring money. Each type comes with advantages and limitations. It’s important to compare the different remittance methods to see which one fits your business needs.

For instance, bank-to-bank transfers are a secure way of remitting money internationally because payments are sent directly to the beneficiary bank. However, this may incur high transfer fees, which means both the sender and the receiver may need to shoulder the transfer charges. You may also have to do some paperwork before sending money.

Meanwhile, telegraphic transfers are common when remitting larger amounts of money in foreign currencies. Processing time typically occurs between two (2) to four (4) business days, and they require a SWIFT code to transfer money to an overseas account. However, expect expensive transfer charges due to the quick turnaround time. 

On the other hand, debit or credit cards use a bank wire transfer to complete an overseas transfer, which is often costly.

A payments software like Spenmo offers a cost-efficient and reliable way to transfer money overseas. Account owners can conveniently process cross-border payments from the mobile app. It also features a foreign exchange (FX) calculator offering the best rates, guaranteed!

 2. Check the exchange rates and fees

Before sending money overseas, consider the fluctuating FX rates and transfer fees that might affect your transaction.

According to the World Bank, the average cost of international remittances is 6.30% of the amount sent. These fees, if ignored, can quickly burn a hole in your pocket every time you transfer money. Before making any transfers, ask your service provider about the current exchange rates and corresponding transfer fees. 

3. Research transfer scams

A money transfer service that ticks all the boxes and seems too good to be true probably isn’t trustworthy. Common scams include the “financial institutions” asking you to send them your bank details or make a wire transfer through a particular person. Always double-check if the provider is licensed before using their wire transfer service. 

For instance, businesses that handle money transfers in Singapore must have a licence issued by the Monetary Authority of Singapore. The licence can either be Capital Markets Services Licence or Financial Advisers Licence. 

4. Plan your money transfers

You can transfer money overseas whenever you need to. However, sending money at any given time is not ideal. Planning your payments ahead of time can avoid any hassle, from delayed payments to penalty charges. In fact, scheduling your remittances can help you save costs and ensure that your vendor or supplier receives them on time. 

Consider public, religious, or non-working holidays, which can cause delays in your remittance. It’s best to make an international transfer during regular working days to avoid delayed payments or unreasonable exchange rates.

5. Double-check the details before sending

Always check the transfer details like the bank account number and amount before making an overseas funds transfer. The last thing you want to do is remit the amount to an unknown account. You must contact your service provider immediately if you accidentally wired money to the wrong recipient. 

6. Get a confirmation

The transfer service provider should send a transaction receipt when you remit money overseas. Always look for the tracking number in the receipt. Use the code to check if the beneficiary has received the money you sent. 

Find an effective and reliable tool for safe remittances

Knowing how to remit funds safely will help you avoid losses while giving you peace of mind on your transactions. 

If you regularly remit payments abroad, consider using Spenmo’s budget-friendly, automated overseas payment facility at 0% foreign exchange markup. We offer the best international payment rates, guaranteed. Book a demo today to learn more about the platform!