Here are some more helpful tips to consider when deciding which method to use when sending money:

1. Take Your Time! Unless your funds need to be transferred immediately, you can usually save a great deal of money by avoiding the “instant” money transfers available through some companies. If you can afford to wait 3-4 days for the money to become available for your recipient, you’ll usually save money in doing so. Fortunately, there are many companies who charge only one fee and make the money available on the receiving end quickly in every transaction.
2. For regularly sending small amounts or for a one time transfer of less than $1000, there’s no reason to pay the astronomical fees charged by banks. However, if you need to send hundreds of thousands of dollars in one transaction, banks have the scope and scale necessary to handle these transfers safely and efficiently. The best thing about transferring money through a bank is that the money can be tracked and accounted for from start to finish. There is an extremely high level of security with bank transfers as well. Your recipient will also have to furnish government issued identification to access the funds, decreasing the likelihood of fraud attempts.
3. Avoid Using Your Credit Card! Many methods for money transfers offer the ability to send money overseas from your credit card. Many times, these companies charge additional fees for allowing the convenience of using your credit card, and those fees are not always disclosed in big, bold print. In addition, your credit card company will consider this a cash advance, which begins incurring interest from day one and often is charged a ridiculously high interest rate. Credit cards are convenient for a lot of things, but should only be used in an international money transfer if no other method is available.
4. Understand Exchange Rates! One of the “hidden” ways that some money transfer companies make money is by providing a less than favorable exchange rate. They may take the going rate of exchange and take a piece off the top for themselves. A company advertising the ability to send money with “no fees” is likely making their money on skimming during the currency exchange. It’s important to understand how exchange rates are determined and when they are applied to the transfer. If you’re using a money transfer method that takes a few days, such as sending money between banks, you’ll want to determine whether the exchange rate is applied at the time of the transfer or at the time the funds become available. Exchange rates can move quickly and you’ll want to avoid the negative surprise of finding out that you didn’t send as much as you thought you had. This is another reason that prepaid debit cards work so well as a money transfer vehicle, as the transfer happens quickly enough to mitigate a lot of the exchange rate risk.