How can you receive money from foreign countries?

If you have loved ones residing in another country, there might come a time when they send you money. Whether it's for special occasions like birthdays or weddings, for educational expenses, or simply to support your day-to-day living costs, sending or receiving money from overseas in any currency can be done securely and conveniently through an International Money Transfer (IMT).

An IMT is an electronic transfer of funds to or from an international bank or account that allows you to receive money from almost anywhere in the world. However, transfer recipients may need to pay some associated fees.

Are there any costs associated with receiving money from overseas?

When someone sends money internationally, they usually pay most of the transaction fees. However, there could still be some costs involved for the person receiving the money from overseas.

1. Receiving fees

When someone sends money internationally, they typically cover most of the fees, such as transaction, cancellation, or amendment fees. As the recipient, your bank or financial institution may charge you a fee for receiving the money from abroad. This fee will be deducted from the total amount you receive and covers the processing and depositing of the foreign payment into your bank account.

2. Intermediary fees

When you send money internationally, it usually goes through the SWIFT system, which is a network connecting banks worldwide for processing payments. This means your money might pass through intermediary banks, and each of these banks could charge a fee. These fees might be taken from the money you receive, or the sender might pay them upfront.

Why you should consider the exchange rate and the margin?

If the sender doesn't pay the currency exchange rate at the start of the transaction, the final amount you receive might be less than what you were expecting. Even slight changes in the exchange rate can significantly impact the amount you get at the end of the transaction, especially for large transfers. Foreign exchange rates are influenced by factors such as market conditions, supply and demand, and political and economic situations. If you want to avoid unexpected changes in the exchange rate, it's smart for the sender to look for an international money transfer service that provides competitive rates, especially when sending a large amount of money.

What are the ways I can receive money from overseas?

Thanks to modern technology and specialized money transfer companies, you have various choices for receiving money from overseas, each with its advantages and disadvantages. However, not all providers offer every method of payout.

1. Bank Transfers

The most common and easily accessible option is to receive the money directly deposited into your bank account through a bank transfer. The sender will need to start the transfer from their bank account, usually through online or mobile banking. You just have to give some details like your name, account number, address, your bank's name, and a SWIFT or BIC code, which you can get from your bank.

These transfers might be expensive because banks often add their fee for foreign exchange on top of the margin applied to your exchange rate for international transfers.

2. Card Deposits

Some providers offer the option to receive international payments directly onto your bank or debit card. The process is similar to receiving funds in your bank account, but you only need to provide your card number, without any extra bank details.

This method can be speedy because card providers typically process transactions quickly.

3. International Money Transfer Services

You can get money from abroad straight into your bank account by using an international money transfer service. You'll give your bank details to the sender so they can create an online account with the transfer provider and convert the money into your chosen currency. Then, the provider will transfer the funds into your bank account.

These transfer services usually have lower fees and high exchange rates compared to banks.

4. International Money Order

You can receive money from abroad by getting a cheque. The sender can ask their bank to issue an international bank draft in any currency they want, using their funds to cover the amount. Then, they send the cheque to you. You can cash it at your local bank or deposit it into your account.

The downside is that bank drafts can take weeks to process, so it might not be the best choice if you need the money quickly.

5. Cash Pick Up

You can opt to pick up an international payment as cash from your bank, a third-party merchant, or a designated store. You don't have to create an account with an international money transfer provider or bank to get the money, but you'll need the transaction reference number and show valid identification matching the details provided in the transaction to collect your cash.

6. Mobile Wallet Deposit

Some companies allow you to receive money directly into your mobile wallet account. This is particularly useful in rural areas with limited access to shops, banks, and money transfer agents. It's a popular way to receive money in certain parts of Africa and Asia.

Usually, you only need to register with the provider using your name, address, contact information, and sometimes a connected bank account. You might also need to provide identification to sign up. Once you're registered, you can receive money whenever you need to.

7. Airtime

You can use certain services to send things like text messages, call minutes, or internet data to people's mobile phones worldwide, instead of just sending money. You just need to give your phone number to the person sending the airtime, and they can start the transfer without needing much more information from you.

To make sure your money transfers are safe, it's important to use a platform that has industry standard security features like encryption and two-factor authentication. When you sign up for these services, they'll check your documents to verify your identity. And when you send or receive money, they'll verify the identities of everyone involved. You can also check reviews from other customers online to see if the service is reliable.