There are so many tasks that have been made simpler and more effective with the advent of technology and the World Wide Web, shrinking the world and making it a more connected one. Remote connectivity is a term now more often used within closed spaces rather than referring to a place far, far away.
One of them involving people and finances is International Money Transfer. Also known as Wire Transfer, Telegraphic Transfer or Online Transfer, it is the most convenient, quick and secure method of money or funds transfer from one account to another account overseas. This is used for several purposes, domestic as well as commercial. In a domestic form, it can be used to send money to a family member or a friend in another country; in a commercial sense, it can be used to purchase goods, make payments for bills or pay advances for a holiday or vacation or any other purpose. However there are specific amount limits and rules governing such money transactions; if these laws are not adhered to, the transaction may not take place. Such laws have been put in place to prevent money laundering and other illegal activities concerning movement of funds for illegal and unlawful purposes.
In simple terms, money transfer allows money to travel from state to state or from one country to another country through banking and financial companies.
Basic requirements to arrange money transfers
There are some necessary requirements for international money transfers; these procedures may vary in stages from country to country but by and large, they are standard norms.
1. Proof of identification – The person arranging the money transfer through a bank or company has to produce identification proof. International money transfers require a photo id; usually a facsimile of a certified copy of the photo id is sent to the bank. If the id is not current or invalid for some reason, the money will not be transferred.
2. Amount limits – Location transfers allow some relaxation if money is sent or received in person but for online transfers there are regulations for the amount of money transferred in a single transaction or on any given day. Multiple transactions are possible if they are needed; these also control money laundering to some extent.
3. Transfer fees – By law the bank or company transferring the money is given the right to charge a service fee for the transaction; this fee varies from bank to bank and also on the type of service provided.
Online money transfers
This option helps the sender transfer the money using the Internet. The sender is required to create an account after which the money can be transferred. However, the receiver of the money transfer is required to collect the money in person after establishing his or her identity through documentation proof because this is a requirement for verification. The details and records of senders and receivers of such transactions are kept on record by the company and each transfer is controlled through a ‘money transfer control number’.
Credit or Wire Transfer
This is another method of ‘electronic funds transfer’ from one person to another person using bank accounts of the sender and receiver. Different operators of wire transfer systems provide various options; these are relative to the volume of the transfer as well as the purpose it is intended for. RTGS or ‘real time gross settlement’ is known to be the quickest way of funds transfer because it is ‘real time’ or immediate and irrevocable transfer of funds. The faster transfer method allows less time for fluctuations in currency while in transit enabling sender and receiver to gain the benefit of value and volume of funds.