Money Transfer: 5 Common Issues You May Face

Money transfers are the lifeblood of the informal economy. Sending money to relatives abroad or making purchases when lacking banking capability is important for millions of people. Despite the demand for methods of sending funds, several issues put obstacles in the way of consumers.

1. Fees and Exchange Rates

When sending funds, it’s important to get as much of that money to the recipient. Fees and exchange rates can eat away at your capital, making it unsustainable to transfer funds.

It makes sense that companies that transfer money charge a fee for their service. It is their business model, after all. However, sometimes these fees can be excessive and you’ll need to do some price shopping.

Furthermore, exchange rates vary from institution to institution. While currency exchange rates result from market-making, you’ll find that there are discrepancies between institutions. All you have to do to confirm this is to check the exchange rates of different banks.

2. Security of Your Money Transfer

When transferring funds, your money goes through different stages. You deposit your money with the service, that money then assumes a digital form and is received by the institution at your chosen destination. This leaves a lot of room for security issues.

In a world where accounts can be hacked and card details can be stolen, ensuring the security of your transfer is paramount.

3. Possibility for Errors

Besides malicious actors, common errors can also place roadblocks in the transfer of your funds. Incorrectly typing a string of numbers or misspelling a name can be a nuisance.

In this case, you’ll likely be able to track your funds and have them returned. The process, however, can add weeks to your transfer. This can present a problem when the recipient is relying on the money you’re sending them.

4. Time to Reach Recipient

Some services will transfer your funds quicker than others. Additionally, when you’re sending money from one bank to another, the time necessary to complete the transfer goes up significantly. Ample time needs to transpire for the transaction to clear.

If you need to get money urgently, you’ll have to find a service that can deliver it without delay. This means finding a service that controls the location you deposit the money as well as the spot where the funds are received. In any case, make sure you ask how long it will take and check to see if the service offers a way to digitally track your transfer.

5. Red Tape

Another hassle to your fund transfer efforts is unnecessarily demanding requirements. Some services require you to present a host of documents in order to get the transfer going. If you go to the location with your identification and the money, you may find yourself having to turn back home to get extra paperwork.

Streamline Your Money Transfers

Sending money in a hassle-free manner is all about avoiding potential pitfalls. A money transfer service like Western Union is reliable and won’t charge you excessive fees while causing delays.