Transferring money internationally? Here are 5 things to look for in 2022

When you send cash around the world, you want to make sure it’s in safe hands.

Sponsored by HSBC. Convert currencies online anytime, anywhere with the HSBC Everyday Global Account. Proud winners of the Finder Award Best Transaction Account 2021.

More than at any other time in history, we live in a global village.

It is not uncommon for people to have family, friends, associates and creditors spread all over the planet.

So when you want to send money to any of them, that means you need a reliable money transfer service.

But how can you tell? Well, we’ve rounded up 5 key things you need to look out for when sending money around the world.

1. Supplier Reliability

There are tons of different money transfer services available. Some are run by banks, while others are independent services.

Both have their advantages.

However, some people prefer to use banks when sending money abroad.

There is generally a better established network and better traceability in the event of a problem.

Whichever provider you choose, it’s important that it works in a wide variety of countries and currencies.

It should also be able to provide you with up-to-date exchange rates and transparency on fees.

Let’s take a look at HSBC for example – an international bank with a global network.

Currently, the HSBC Everyday Global Account allows you to hold up to 10 different currencies and make international transfers in over 60 currencies through HSBC Australia Mobile Banking.

Plus, real-time HSBC exchange rates are updated every 60 seconds on HSBC Australia Mobile Banking – so you’ll always know how much you’ll receive from your currency conversion.

Of course, everyone’s international transfer needs are different. You should always opt for a provider that meets your specific needs.

2. Fees

When sending money, there are 2 main types of fees to consider: direct fees or increased exchange rates.

Depending on the provider, they may charge a fixed fee or actually reduce exchange rates.

Fixed fees and rising exchange rates have their pros and cons – so it’s hard to say which is “better”.

But when large sums of money are involved, many opt for a flat rate, to minimize the costs of the process.

Sometimes you can save on fees by bundling multiple transactions.

Just be sure to check point number 4 below before assuming this is always the case.

And another thing to watch out for – you may also find there are bank charges for sending and receiving bank charges.

Speak to the relevant financial institutions before starting the transfer to see if there will be any additional costs.

3. Exchange rate

When you send money abroad, it is converted into the local currency, according to the current exchange rate.

Now this is an important consideration.

Indeed, exchange rates constantly fluctuate and change, due to broader economic circumstances. They are rarely predictable either.

Ideally, you want to be able to send money when the exchange rate is in your favor.

However, this is not always possible – after all, international money transfers often need to be completed quickly.

Also, some providers will charge based on exchange rates rather than fees.

So if you know you’ll be transferring money abroad regularly, be sure to note the exchange rates often.

Also, if you spot a good exchange rate from a provider, you check it carefully to see if there are any other fees required.

This will help you and the recipient get your money’s worth.

4. Transfer Limits

Different countries, money transfer services, and financial institutions may all have varying transfer limits in place.

These limits are usually related to fraud prevention or tax laws.

So, before you start your transaction, first check if there are any transfer limits.

This will ensure that you are able to send it correctly and that the recipient can receive it without any problems.

However, if the amount you send is less than the transfer limit, you may be able to combine multiple transfers into one.

This way, you only have to pay one transfer fee, rather than multiple fees for multiple transactions.

5. Recipient contact details

Last, but not least, make sure you have all the correct recipient information.

When transferring money to Australia, you usually only need a BSB and an account number. Or if you’re paying a bill, you might have a BPAY code.

But when you’re sending money internationally, it can be a bit trickier. The way account details are formatted often varies from country to country.

Therefore, you will generally need to provide the following information:

  • The name and address of the recipient
  • Their bank account number or a specific international bank account number (IBAN)
  • The financial institution’s SWIFT code (also known as bank identifier code or BIC)

The same principles apply globally if you are transfer money to pay a billtoo.

Remember that incorrect information can mean that your money cannot be sent. So be sure to check everything carefully before you start the transaction.

Learn more about transferring money with HSBC

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