International money transfers are a lot easier and faster these days, but they can still be problematic if you are not careful. This applies to both commercial and personal international money transfers, but the scope and scale of the potential problems would be different. Most of these problems can be avoided or solved with relative ease though, provided that you keep the following points in mind.
There are Different Rules for Different Nations
The differences in experience will become painfully obvious if you are used to wire transfers. Depending on where the sender’s and the recipient’s respective bank accounts are located, you can expect significant differences in:
- How long the transfer takes to complete.
- The time it takes for the sent money to become available in a recipient’s bank account, after the transaction is marked as complete.
- How much is charged by the recipient’s bank as fees for foreign remittance conversion and TDS.
- The fees charged by your own bank for the transaction.
- The amount of paperwork you will need to submit before the transaction is carried out.
All of the above would only be applicable if international wire transfers between the two bank accounts are even supported as that too varies in accordance with the two concerned nations.
Read also: Send money online – Discover the Best Tools to do it.
You can avoid most hassle associated with international money transfers by skipping the wire transfers and switching over to the Ria Money Transfer app. As long as the recipient nation is on their roster of supported nations, not only will all international money transfers made through the app be hassle-free, safe, and quick for both parties, but they will also be cheaper.
You Must Be Aware of Two Different Sets of Taxation Rules
Nations vary widely in their rules for internal taxation, as well as in their special taxation rules for incoming and outgoing foreign remittance. Naturally, this makes it mandatory for the sender to be knowledgeable regarding the applicable taxation rules across both nations. The recipient only needs to familiarize themselves with their nation’s tax laws, as would be applicable on the incoming foreign transactions.
Be Wary of Hidden Fees
Banks are infamous for their hidden fees. These are the fees hidden in plain sight, that is to say in a long list of ever-changing terms & conditions. Most of us do not read the whole document while signing up and tend to ignore the emails sent to us regarding policy changes, changes to the fee structure, etc. In fact, financial establishments bank on the fact that a large majority of their customer base will do just that.
Even if you decide to take a quick look through the updated terms & conditions, you may find it confusing, and that too, is by design. Instead of simply highlighting the fee bump or changes to the fee structure, it’s not uncommon for the documents to hide that information inside legal jargon.
Related content: The Best Platforms to Send & Receive Money Quickly Online.
Take some time and read through the changes every time they are announced. Although it can be frustrating and time consuming, that time is well worth it compared to the unpleasant surprise of being charged more per transaction without warning.
