What you need to know when transferring money to USA

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The demand for money transfers to the United States is rising as evidenced by the robust financial results by the leading money transfer companies. For one, many foreign companies now have American workers. Also, there are more than 8.7 million Americans living abroad who have needs back home. In this article, we will look at some of the key details about transferring money to the USA.

The money transfer mode

You need to think about the money transfer method when you are sending funds. That’s because the mode you choose will determine the time when your recipient will get the money and the cost of the entire transaction. The reliability of your money transfer is also very important.

Fortunately, there are many fast and cheap methods of accomplishing this today. For example, some companies like PayPal and Skrill help you send money within seconds. The recipient will receive funds to their mobile wallets. They can then spend it inside the wallet or move it to their bank account.

There are other methods that send money direct to the recipient’s account. For example, a wire transfer sends money direct to the account. And unlike in the past, you don’t need to visit your bank branch to complete the transfer. Instead, you can complete the transfer straight in your mobile banking app or online banking platform.

In most cases, a wire transfer will take a few minutes to complete and all you will need is the recipient’s bank account, bank name, and IBAN. The cost of the transaction is usually less than $50 in most cases and the funds will arrive within a day or two.

Further, you can decide to use the new-age intermediaries like TransferWise that will deposit the funds directly to the users account. To get the best payment method, we recommend that you use a good money transfer comparison firm.

Other popular options of sending money to the US include physical checks, money orders, and even cryptocurrencies like Litecoin, Monero, and Bitcoin.

Understand the cost of transferring money to the US

In the past few years, competition has reduced the cost of US money transfers internationally. In the past, companies like Western Union and Moneygram used to make a lot of money in commission. Today, the average cost of sending money is less than $100 in most cases.

In fact, some companies don’t charge a fee to do that. Instead, they make money by taking a small portion of the exchange rate. When using wire transfer, the overall charge will be between 3% and 5% of the total cost you are sending.

In general, you should liaise with the recipient on the option they prefer. Also, you should use the comparison firms to simplify the process.

Meanwhile, there are other important details about sending money to the USA. For example, using the method you prefer, it is possible to send an automatic billing where the funds will be sent automatically to the same person periodically. For example, if you have an employee in the US, you can use some methods to send money automatically every month.

Also, you should always be aware of the overall exchange rate between your local currency and the dollar. You can use Google to check the exchange rate and compare with the one you are being offered because the difference can make a difference.

Summary

The process of sending money abroad has been made easy by technology. As a result, the cost of doing the transaction has also dropped. Therefore, we recommend that you take your time to find a good payment option that is safe, fast, and transparent

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Samantha Acuna is a writer based in San Francisco, CA. Her work has been featured in The Huffington Post, Entrepreneur.com, and Yahoo Small Business.