Here is a comparison of four of the main companies providing money transfer services around the globe:
Ikobo cards: This is a re-loadable prepaid visa debit card. It is in no way linked to your bank account meaning there is no need for any credit checks; very useful for those people with a bad credit rating. You can transfer money on to the card and then this can be withdrawn from any ATM anywhere in the world which has the Visa sign. To gain an Ikobo card you simply order one directly from them and have it sent to whom ever you want.
The Ikobo card works as follows: the card is sent via FED EX to any individual in the world and can only be utilized by using the four digit pin code which only the recipient will be aware of. There is virtually no risk of more than the available amount of money being used as it is not linked directly to a bank account. The card can simply be reloaded using a secure online service where you can transfer funds instantaneously from any of the many supported currencies.
Main Advantages: cash withdrawals from visa ATMs worldwide, minimal reload costs, assignable to anyone worldwide, minimal credit checks required, avoids the need to carry large amounts of travelers cheques.
Main Disadvantages: these cards can only be used with Visa ATMs (occasionally limited and there is no credit limit available).
Western Union: Fund transfers with western union can be done either online or physically at a money transfer agent. Usually the funds will be available within minutes however to comply with anti money-laundering laws sometimes you are required to making a confirmation phone call before the money is released. A confirmation of money collection is also sent to the sender.
For online transfers and transfers made from an agent location the only information required are the personal names and details of the sender and the receiver. The send if at a agent location needs to provide their passport as must the receiver on collection. When the sender sends the money they receive a personal MTCN number (Money Control Number) which they then need to pass on to the receiver so that they can make the collection.
Main Advantages : funds transferred within minutes, transfers can be made online or offline, receiver will collect the money inn local currency, there is a huge network of agent locations around the world, receiver does not need a bank account to receive funds and there are other message services available as well.
Main Disadvantages : Generally this is one of the most costly money transfer providers; you may be required to make a phone call from your home address to confirm a transfer.
Xoom Money Transfer : This service works through the following process online: enter the recipients contact information, enter the amount you wish to send, select a delivery method- money can be collected, hand delivered or entered into your bank, credit card or paypal account. Enter your payment details bank, credit card or paypal account details. Press send and then let your recipient know the money is on the way. You will then be issued with a Xoom tracking number.
Main Advantages : the transfer fees are more competitive than from other companies, online transactions and the ability to transfer direct into US bank accounts also make it a very attractive option.
Main Disadvantages: The main limitation is that they do not operate in as many countries as do some of the other companies, for example no service is available to transfer money to Thailand a very popular destination for sending and receiving money.
Moneybookers: With this company again you are required to register but the web-site has been created with similar security levels as sites containing banking services and share trading services.
After registering all you need is your email address and password to make payments and the receiver doesn't need a money bookers account. You follow the on screen process to register your cards and then you are able to pay at over 3500 online shops so you don't need to show them each time you want to make purchases.
Money bookers supports 12 languages and payment in local currency is available in over 30 countries. They provide customer support through an online messaging which deals with enquiries quickly and efficiently.
Main Advantages: Very competitive transfer fees, additional services like sending SMS and faxes are available and instantaneous money transmissions as borderless as the internet.
Main Disadvantages : They don't quite have the scale or mass network as other more established companies do.
So, there you have four of the main companies available for money transfers outlined for you. There are plenty of other options besides; this is just to show you the variety and scope of services available. Both the number of money transfer companies and services available are growing daily so if you need to make a money transfer don't rush, have a look at a few different companies, check the small print and find the one that suits you the most.
Money Transfer Advice For Security And Savings
With over 175 million people living outside of their country of origin, the growing usage of migrant workers and the continuation of globalisation the money transfer market looks set to continue its current growth levels of 10-12% per year. Currently the market is already worth over $250 billion with more and more companies organising new and innovative services for transferring money alongside some more traditional money transfer companies.
Some of the more well known money transfer companies are: iKobo, Western Union, icici, MoneyGram and E-gold. For newcomers to the money transfer market it can be a little overwhelming at first. There are a variety of methods that these companies use to transfer the money not to mention bank transfers and paper transfers. For this reason it is important to make an informed choice about who you are going to transfer your money with, it is far better to make an informed and safe judgment than to just use the first money transfer company that you come across.
Whilst we all want to get the best value for money transfer it is a good idea to remember that the cheapest option is not always the best option. With that in mind here are a few points worth bearing in mind whilst arranging your money transfer:
What exactly is the money transfer fee and how is it calculated?
What is the exact exchange rate that they are using?
How will the money actually get into the hands of my intended recipient?
How soon will the funds be made available?
Is it possible for the recipient to be able to collect the funds from different locations?
Are there any extra fees for using credit cards? Exactly how much will they come to?
If they are able to answer the above questions quickly and easily then the chances are the company are well organised and capable of transferring your money. However save your receipts - all signed documents are proof of the money transfer and would be useful if there was to be a dispute.
Furthermore here are a few more questions you may wish to ask the company:
If the money is not received by the specified time/date will I receive any compensation?
What rights do I have if this situation were to occur?
Does the recipient have to pay a fee aswell?
What rights do I have if the money is not received at the promised time?
If the recipient is unable to pick up the money transfer for some reason, what is the refund policy?
What ID is acceptable for the recipient to provide in order to collect the money transfer?
Now of course having dealt with the safety concerns how about saving a bit of money aswell. Here are a few top tips to consider:
Consider a delayed transaction. These are often significantly cheaper the only difference is the money transfer can take 2-3 days. This should not be a problem if there is no emergency.
Think about performing a direct bank to bank transfer although generally these are slower this can often save a considerable amount, consult your local bank for details of any particular bank codes that you may need. Don't forget to watch out for hidden exchange rate costs. This is often where the money transfer companies will make their money on you. They don't always make it clear exactly how much they are charging and for what.
Be aware that different companies charge more money for sending to different locations so depending on your situation this could increase the fee dramatically.
Try not to use a credit card if possible as this may also add an extra charge for you as you will have to pay the cash advance fee. Furthermore try and find a company that offers a flat rate fee as opposed to a money transfer company that charges a percentage as this tends to be a better deal.
Finally, Check the newspaper or online for the latest rates and cross check them with what the company are offering you. You may find you are losing money compared to what you should be getting so don't be afraid to find a new company if this is the case.
There are a lot of new companies starting all the time and a great variety of ways for you to transfer your money so make sure you check out all the competition to find the one that suits you most, your needs and your budget. So having considered all the above safety factors and money saving tips there is no reason for you not to be able to transfer your money in timely and cost-effective manner.
