Wednesday 14 December 2016

Sending US Dollars International – What You Need To Know

Sending money across borders using an international money transfer, whether for business or personal reasons, can be easy but at the same time a risky affair. With technology improving daily, it is now cheaper, safer and easier to remit cash internationally. Before sending your hard-earned dollars, here are a few things to look out for before doing so.

Check all fees, transaction costs and tax options

Banks and other financial service providers are known to insert hidden charges. These charges add up, especially if you are a regular sender. All the transaction costs should be necessary and justified. Try a specialist money transfer service, as they often come in cheapest.

Find the cheapest exchange rates

That extra penny can mean a huge difference if you are sending a significant amount. Find a reputable information source from the internet and compare rates. The extra dollars saved could cover the fees and transfer costs.

Check the Tax Considerations

The gift tax is a huge consideration when transacting internationally. You would not want to get into the bad books of the IRS. Currently, any amount above $14,000 sent as a gift is subject to gift tax. This amount is cumulative over a year’s period. Money sent to a dependent child is however not subject to taxation.

The United States government continuously monitors large sum transactions to prevent fraud and money laundering. If you are sending large sums, you are better off being compliant to avoid inconveniences with the law.

Risks involved

You run the risk of fraud if you use untrustworthy credit unions, remittance services, and unverified mediums. Online transfers are very risky, as the security is not guaranteed. Beware of scammers; they are everywhere. Form con artists to posers, once the dollars leave the country, it is virtually impossible to pursue a refund.

Money Laundering and Fraud Laws

Regulations on money laundering laws apply to the financial institution being used to transfer funds. On the part of the customer, however, a proven money laundering transaction if convicted, carries a jail term of up to a yea, or a few thousand dollars in fines for misdemeanor cases. A federal money laundering case can carry fines in the region of $500,000 and jail term not exceeding five years. It is important to seek legal advice if you are not sure.

Reasons for sending money abroad

You could be paying school fees, sending money to a dependent or just for personal reasons. Other popular reasons for sending money include paying for mortgages, buying goods or services, you could also be topping up an overseas account, or just paying your bills. Whichever the case might be, always ensure you use a reputable bank or money transfer agent.

Methods of sending money abroad

The most popular methods include banks and genuine financial services. Other options include money remittance companies; examples are, Western Union, MoneyGram, Xpress Money, TransferWise and WorldRemit. It is always helpful to check out your options before going for either one of these, as transaction fees and other charges vary marginally. Another important factor to consider is the global availability of the money remittance service. Most banks will have their transfer service, having been networked with other worldwide banks. MoneyGram and Western Union are the companies with the widest geographical coverage.



from
http://www.changecurrency.org/international-money-transfers/sending-us-dollars-international-what-you-need-to-know/

Sending Euros Internationally – What You Should Know

If you have ever sent international money transfers, especially if you do so regularly, you are probably aware of the security concerns and precautions you need to take for a safe transfer. You are also aware that the paperwork is a nightmare. The worst setback is the hidden charges factor. You will be subjected to a list of transaction fees, taxes and a whole lot of other charges. Most currencies, particularly the Euro has with time wiped out the complicated process, and it is now easier to send money abroad. Here’s what you need to know for a swift money transfer.

Know the exchange rate

Finding the best exchange rate can give you value for your euros. Avoid banks if you can, you are better off transacting with a foreign exchange bureau or expert. Even an extra penny can make a huge difference, especially when transacting huge amounts of cash.
Be keen with transaction charges and fees

Banks and money transfer agents are known to hide fees that can add up to significant amounts. Do a quick background research and know the benefits you qualify for. Example, it is free to transfer money in the EU, thanks to Single Euro Payments Area (SEPA). Sending money to a non-European country will cost you an average £40, (48 Euros). The transfer fees will vary with banks, and finding the cheapest transfer agent can make a huge difference.

Market Timing

If the market on an upward trend, it would be best to wait a few more days, but if it is in a free fall, you would better hurry and send the cash as soon as possible. The 0.5 difference can translate to hundreds of euros in the end especially if you send cash regularly.

Take care of your money

Ensure the medium you are using is regulated to avoid fraud and theft. If you are sending a lot of cash, use a bank or a competent money transfer agency.

Methods you can use to send

Any bank, although not their primary business, has a money transfer service. If not, they outsource the service from money transfer companies. Reputable UK-based money remitter TorFX will not disappoint. You can send international money transfers anywhere, with zero commission. Western Union is known for its large network. You can send money to almost every country in the world, with cheap rates and safe transfers. Moneygram is popular for its convenience and cheap rates. It is also a safe and reputable company. US Forex (UFX) is awesome if you are sending money to the US, Canada or Australia.

Risks to watch out for

The risks are minimized if you use banks or money remittance companies. Online money transfer is the riskiest, with over 87% of money transfer fraud cases occurring online. Remember, transferring money in the currency of the receiving bank eliminates the risk of overdrafts in your account. Use a reputable bank or transfer agency to avoid the risk of fraud.

So, whether you are sending an international money transfer to a loved one, or sending school fees abroad, or paying for a mortgage in your home country, it is best to avoid low profile money transfer options. These small service companies promise faster and cheaper money transfer, but they can prove very expensive if your cash does not arrive.



from
http://www.changecurrency.org/international-money-transfers/sending-euros-internationally-what-you-should-know/