What makes the Money Transfer services better option than banks?

Managing money outside your country can be more complicated than just knowing about different currencies and their exchange rates. If you are planning to migrate to another country, go abroad for studies, visit another country on your holidays or you need to send money to support your family back home it is always better to have your own money management plan.

Factors like cost, transparency, convenience, speed, and security are always to be considered when choosing a best service provider. Even though both banks and money transfer services provide the same service the techniques they use to transfer money are way different to each other.

Banks use the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network that links many banks around the globe to perform their international money transfers. These transfers are also called wire transfers. On the other hand, money transfer service providers use a network of bank accounts around the world to maintain the cash flow.

Before comparing the methods to transfer money it is always better to have a clear idea about your requirements. How long can the recipient wait for your money, how much you need to transfer at once and are you going to repeat the same transaction more often are some of the facts that can help you to identify the best service provider you need to select.

Transaction charges

Most of the time bank transfers can be way too costly than the money transferring services. Money transfer specialists completely avoid the SWIFT network that provides a lower cost to the money sender when transferring. There are few other factors like transaction costs and exchange rate margin that add cost for bank transfers. Even the money transfer services depend their profit on the above mentioned factors. These service providers most of the time charge one of the above rather than the both. Also the charges imposed by money transfer service providers are usually lower compared to bank charges. At last sending money through a money transferring service will be the cheapest option.

Speed

Once again due to the use of the SWIFT network to move the funds around there are several additional processes involved making the bank transfers slower than the money transfer service providers. You can never guarantee that your money will reach the receiver before 24 hours if you are using a bank to transfer your money. Usually a bank transfer may take 3 to 5 days for an international money transfer.

Meanwhile a transaction through a money transfer service provider may depend on the method of payment, currencies used for sending and receiving and other factors. This may take a few seconds, a couple of hours to several days. But in general these service providers are faster than the banks.

Safety

The popularity and familiarity have become the reasons behind the banks to still be considered the safest way of handling our cash. This doesn’t mean the money transferring companies cannot be trusted. Most of these companies are fully authorized financial service providers that run service in their relevant country as a registered company.

These service providers usually handle a large number of customers daily meaning mostly handling millions of transactions on a daily basis. This means there is no issue with trusting a money transfer service provider and building confidence towards their service. But still some may feel more secure, comfortable and familiar going for a bank to transfer their funds. For those who still feel the banks are the best choice, you can pay those extra fees and stay a little longer to receive money.

Transparency

When it comes to transaction fees banks are not as transparent as the money transfer service providers. Most of the banks do not provide a clear fees structure beforehand to their customers. It is the same when it comes to exchange rate margins. Impact will be large for those who are sending bigger amounts even when there is a slighter fluctuation in the exchange rate. Also some banks may have a hidden fee that might lead you to lose lots of money unknowingly. There may be fees to both sender and receiver when transferring money through banks.

When compared to banks, money transfer service providers are more transparent, especially about their charges. Many of them explain each and every fee that is involved in transactions on their websites to read and understand and you can even discuss with them about how these fees are added by talking to them. Most of the time the charges are lesser than the banks or sometimes there can be no charges too.

Hassle free transactions

For bank transfers you need to have a bank account and sometimes an account in the same bank you are planning to make the transaction. But when it comes to money transferring services you can have your bank account in any bank and so the receiver. Sometimes simply you don’t need any bank account to perform the transaction meaning less documentation and less hassle.

Also if you are choosing a money transfer service the transactions can be made online or by handing the cash to the relevant service provider. Receivers too can get the cash via their bank account or they can simply collect the cash from the branch of the service provider allocated in many countries in many different cities.

As money transfer service providers are evolving faster compared to the banks they adopt the latest technology more rapidly to provide a better service. In order to provide a maximum customer satisfaction these service providers come up with many new features making the money transferring more convenient for everyone.

These providers already give you a choice of online transfers, in person transfers and transfers through an app. Lower fees with great speed and the ability to send money even without having a bank account are few reasons they are already ahead of banks.

If you need to send money online frequently to the same receiver the money transferring services offer the option of saving the details after a one-time transaction for future transactions saving your time in future. You even have the option of setting up an automatic transfer.

Selecting a method to send your money abroad beforehand will make you feel confident and worry free. No matter what your requirement is to send money abroad the money transferring service providers will offer online money transfers through apps or through their agents spread across a wide range of locations worldwide.

Hope these reasons are sufficient to affirm that money transfer services are better than banks. And with Teeparam Exchange you can send money to Sri Lanka and get highest exchange rates in UK.