To get more information on the best platform to send and receive money and the costs associated with it, we recommend that you use a good free money transfer comparison service.
The global travel industry is set to rebound this year as countries continue vaccinations while opening their borders. After spending most of their time at home in 2020, more people plan on traveling after the pandemic ends. In this article, we’ll look at the concept of using wire transfers when traveling. We will also look at several alternatives you can use.
What is a wire transfer?
A wire transfer is the process of sending money from one bank account to another one; locally or internationally. In the past, the process used to be done by physically visiting a bank or credit union and filling out forms. Today, many banks have simplified the process by enabling people to do wire transfers through their mobile apps and online platforms.
Wire transfers work through a national or global messaging service like Swift and Fedwire. Swift is a messaging service that connects more than 11,000 banks around the world. It performs more than 33.6 million transactions every day. On the other hand, Fedwire is an American real-time gross-settling system (RTGS) that connects most banks in the United States.
To do a wire transfer, you just need the exact bank account details of the recipient. The information includes the bank name, bank account number, and the Swift code. In the European Union, you need to provide the Single Euro Payment Area (SEPA) details.
Wire transfers are relatively cheap and fast to use. In most cases, the funds are usually credited to the customer on the same day or a maximum of two days. The main challenge for wire transfers is the foreign exchange markups.
Using wire transfers when traveling
You can use a wire transfer to send or receive money when traveling. For example, if you have employees in your country, you can use the system to pay them easily. To do this, you should just log-into your bank account and then send the transaction. The funds will reach them within a short period.
You can also receive money using wire transfer when traveling. To do this, you just need to tell the sender your bank details and they will do the transaction. You can then leave these funds in your bank account. Alternatively, you can withdraw it using your credit or debit card. You can also use it for shopping using these cards.
Alternatives to wire transfers
While wire transfers are a good option for sending money, there are limitations and it is possible to save money when transferring abroad. For example, in most countries, the transactions are completed at a certain period. For example, in the US, wires are usually sent on the same day if the transaction is processed before 5:15 PM ET. If done after this, it will be done on the following day.
Therefore, many people prefer using other simple and faster options of sending and receiving money when traveling. For example, money transfer services like PayPal and Skrill have become relatively popular because the transactions are fulfilled right away – although these incur potentially high fees. The most cost effective digital way to send money is to use platforms like Western Union and MoneyGram, many offer competitive rates and fees dependent on the start and end location of your money.
To get more information on the best platform to send and receive money and the costs associated with it, we recommend that you use a good free money transfer comparison service. Within seconds, you will get the fees, speed, exchange rate, and other necessary details you need in your transaction.
Final thoughts
Wire transfers have come a long way. In the past, sending money locally and overseas used to take days. Today, a transfer takes just a few hours. When traveling, you can use the method to send or even receive money. You can also find alternative money transfer solutions that are faster and cheaper.
