How do overseas transactions work
When sending money to another country, it is important to know what factors influence the process. Let’s first begin with the exchange rate that turns your USD to any other foreign currency. This is determined by the service provider of your choice, but be very careful. There are options that do not charge shipping fees, but this may impact costs on the exchange rate, which will result in less money arriving at your destination.
Another factor that plays an important role is time. International transfers usually take about two business days, but this will be determined by the destination country and the recipient’s bank. We know that time is precious, so in order to choose the best option, use comparison tools. It will help you send your money at the right time and pay less when sending money to your loved ones.
Automated clearing houses (ACH) also play important roles in overseas transactions as they help securitize any foreign transaction leaving the US. They are in charge of ensuring your transaction reaches the correct recipient, so don’t worry, your money is in good hands.
There are many ways for international transfers, but here are the most common ones:
- to bank transfers – When using these types of transactions your bank will send the money directly to another bank elsewhere. When choosing this type of transfer, check the exchange rate that your bank has set, as it may increase the rate to mitigate a fee-free transfer.
- Automated Clearing House (ACH) – This electronic transaction has an intermediate regulator that ensures your money transfer. The advantage here is that this transfer is free of fees and linking both banks (a required step in these transfers) is a straightforward process by following the specific instructions of each bank.
- Cash transfers – When you have to make an international cash remittance, you can do it through a physical institution that requires no previous appointment. There are companies such as Western Union that provide easy and accessible solutions for international transfers. The recipient will pick up the money in a money center that varies in each country.
- Wire Transfers – This electronic transfer is provided by almost every bank with international money transfer services. Most of the wire transfers must be done face-to-face, and the best thing about this type of transfer is that they happen through the SWIFT network, which gives each bank a specific identifier that facilitates transfers between banks and ensures that the money reaches the intended recipient.