Sending Money Overseas: A Guide for Migrant Workers - 0 views

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  #1 Shawn Campos on 01 May 12

   

  Using this method you will at least know what it's going to cost you before you obtain the check but again, checks get lost in the mail and it takes time to mail them.
  
  d. Using one of the new online money transfer organizations such as Ezybonds, Xoom or Paypal is the simplest option if you want to send the money quickly. There are many other similar companies but with this kind of organization it is imperative that you ensure their data security is good enough to prevent hacking. With these organizations you need to open an account meaning you will need to provide identification, so check that the company has either been around long enough to be well established or is backed by a substantial parent company to ensure that your private data is secure. Once again check the fees and currency rates. Be aware that sometimes while they say there are no fees, there may well be a charge of up to 4% of the money you want to send and that can be very expensive.
  
  A remittance is a small amount of money sent from a migrant worker to their home country. In 2010 the World Bank reported that over 440 billion USD were remitted across the world. These money transfers are predominately used as a method of monetary support to low income families across the developing world.The recipients of these funds most commonly use the money to cover daily living expenses, to help deal with emergency situations (i.e. tsunami, earthquake), to fund special events (weddings, funerals) and to subsidize small business ventures.The large number of people who send and receive money require an affordable and understandable method to transfer their funds.
  
  Most migrant workers earn low incomes and thus can only send a few hundred dollars per remittance. The relatively small amount of these transfers can be severely cut into by costly remittance fees. Thus it is important for the users of remittance services to be informed of the costs associated with their transactions. The two key components that comprise the cost behind a transaction are:
  
  

  1. The exchange rate
  
  
  2. Fees charged by the remittance provider.

  
  
  The exchange rate, or amount of money at which the currencies are traded, can be quoted differently by each remittance provider. Finding a provider with a good exchange rate will lower the costs of sending money. Let's look at an example of two providers. Provider #1 offers an exchange rate of 1USD/11Mexican Pesos (MXN), while Provider #2 offers an exchange rate of 1USD/ 12MXN. Sending 1000 USD through Provider #1 will be like sending 11000 MXN, while sending 1000 USD with Provider #2 will be like sending 12000 MXN. Thus a small difference in the exchange rate makes Provider #2 much more affordable.
  
  The second cost incurred in sending money overseas is the fee charged by the remittance provider. These fees can vary greatly depending on the method in which one sends their money. The most affordable option for migrant workers who send small amounts is through an online money transfer service. These services charge between 5 USD to 12 USD for transactions under 1000 USD. Alternatively, banks charge a flat rate of 25 USD to 50 USD per remittance (most banks allow up to 50,000 USD per remittance). The bank's wire transfer service is more expansive and only makes sense when sending large amounts of money.
  
  Transfer money overseas

   

  <div class="cArrow"> </div><div class="cContentInner">Using this method you will at least know what it's going to cost you before you obtain the check but again, checks get lost in the mail and it takes time to mail them.<br /><br />d. Using one of the new online money transfer organizations such as Ezybonds, Xoom or Paypal is the simplest option if you want to send the money quickly. There are many other similar companies but with this kind of organization it is imperative that you ensure their data security is good enough to prevent hacking. With these organizations you need to open an account meaning you will need to provide identification, so check that the company has either been around long enough to be well established or is backed by a substantial parent company to ensure that your private data is secure. Once again check the fees and currency rates. Be aware that sometimes while they say there are no fees, there may well be a charge of up to 4% of the money you want to send and that can be very expensive.<br /> <br />A remittance is a small amount of money sent from a migrant worker to their home country. In 2010 the World Bank reported that over 440 billion USD were remitted across the world. These money transfers are predominately used as a method of monetary support to low income families across the developing world.The recipients of these funds most commonly use the money to cover daily living expenses, to help deal with emergency situations (i.e. tsunami, earthquake), to fund special events (weddings, funerals) and to subsidize small business ventures.The large number of people who send and receive money require an affordable and understandable method to transfer their funds.<br /><br />Most migrant workers earn low incomes and thus can only send a few hundred dollars per remittance. The relatively small amount of these transfers can be severely cut into by costly remittance fees. Thus it is important for the users of remittance services to be informed of the costs associated with their transactions. The two key components that comprise the cost behind a transaction are:<br /><br /><ol><li><em>The exchange rate</em></li><br /><li><em> Fees charged by the remittance provider.</em></li></ol><br /><br />The exchange rate, or amount of money at which the currencies are traded, can be quoted differently by each remittance provider. Finding a provider with a good exchange rate will lower the costs of sending money. Let's look at an example of two providers. Provider #1 offers an exchange rate of 1USD/11Mexican Pesos (MXN), while Provider #2 offers an exchange rate of 1USD/ 12MXN. Sending 1000 USD through Provider #1 will be like sending 11000 MXN, while sending 1000 USD with Provider #2 will be like sending 12000 MXN. Thus a small difference in the exchange rate makes Provider #2 much more affordable.<br /><br />The second cost incurred in sending money overseas is the fee charged by the remittance provider. These fees can vary greatly depending on the method in which one sends their money. The most affordable option for migrant workers who send small amounts is through an online money transfer service. These services charge between 5 USD to 12 USD for transactions under 1000 USD. Alternatively, banks charge a flat rate of 25 USD to 50 USD per remittance (most banks allow up to 50,000 USD per remittance). The bank's wire transfer service is more expansive and only makes sense when sending large amounts of money.<br /><br /><a rel="nofollow" href="http://www.comparecurrency.co.uk/money-transfer/">Transfer money overseas</a></div>

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