Remitting money to foreign countries could annoy everyone. Many questions may pop out in your head; which international remittance method should I choose? What is the major difference amongst those methods? Scroll down to find out the best remittance method for you, and you could fully utilize it next time!
International Bank Remittance — First Choice of Large Remittance Amount
International bank remittance could be named as telegraphic transfer, which is the remittance method amongst banks by telegraph or telex. The biggest benefit of telegraphic transfer is that the bank would be able to send a certain amount of money to the recipient’s account regardless of anywhere in the world. The telegraphic transfer method is quicker than any other method of remittance. Therefore, people, in general, will choose telegraphic transfer. However, this process involves many banks and each bank requires different amounts of the transaction fee, so that the telegraphic transfer fees could be expensive and complicated. Compared with other international remittance methods, the telegraphic transfers are less charged based on the percentage of the remittance amount, and they are mostly collected in one lump sum at a specific price. Hypothetically, if an individual sends a large amount of money without getting in a rush, the telegraphic transfer could still be a great method. Would like to know more? Please refer to our previous article about telegraphic transfer.
Online Payment and Collection Platform — Easy and Quick
International bank remittance could be complicated. Normally, people visit the bank branch to verify the transaction or fill the telegraphic transfer form for exclusively conducting the international bank remittance. However, the platform for online payment and collection saves those troubles. And Reap could help you the most as the most convenient platform. Why? Reap only needs ONE bank collection account to transfer from drawee’s credit card to the payee’s account. Nonetheless, the payee does not need a Reap account for receiving the payment. It only requires 3 to 5 business days. Compared to other online payment and collection platforms, Reap’s transaction fee is much affordable and lower. For instance, the transaction fee for PayPal is 4.4% plus the currency conversion fee. For Reap, a much affordable solution for you; only takes a 2.6% transaction fee for the overseas remittance plus the cash-back reward from using credit cards. Using Reap would definitely be the best option for anyone who is in a rush for remittance or explicitly uses a credit card for the transaction.
The biggest disadvantage of using Reap is that we do not support transfer bank deposit postings and receipts must be provided. Reap service won’t be available if an individual doesn’t have a credit card. Under such circumstances, Transferwise can be considered as another method. The transfer is comparatively fast. It could be posted in just a few seconds. There is no need to provide any receipts while posting. The fee is not a certain ratio. In other words, the lower the transaction fee is, the cheaper it would be. There are always downsides to everything. If an individual wants to exploit a credit or debit card to pay, Transferwise will charge an additional handling fee. Moreover, credit and debit card payment restrictions are much lower, regardless of the remittance currency; up to HK $20,000 can be transferred. On top of that, Transferwise has its own remittance method. Compared with Reap, which compares the exchange rates of three foreign exchange companies and selects the best company for the lowest transaction fee. In that case, using Transferwise is more likely to be an expensive option.
Besides, the algorithm of the transfer platform is rather strange. Reap’s remittance amount is very simple and straightforward; the transaction amount would be the same from one party to the other, plus the additional transaction fee. For Transferwise, they deduct the handling fee and additional fees from everyone’s remittance, then convert the remittance into foreign currency and post it to the other party’s account. To put it much simpler, Transferwise is more difficult to calculate the counterparty’s collection amount than Reap does, so when you select Transferwise for your remittance method, you need to pay extra attention to the actual counterparty’s collection amount to prevent disputes, miscommunications, and misunderstandings.
Remittance through E-wallet — Connect with Western Union
If you only need to transfer small amounts overseas, or the other party does not have a bank account, then you can consider using the international remittance service of Tap&Go and Western Union. Through the application, the amount will be transferred to the Western Union and everyone can post to overseas regions. Western Union is located in more than 200 regions across the country, and the payee doesn’t need to have a local bank account, and Western Union payment via Tap&Go doesn’t require to pay a handling fee, but each transaction can only post a maximum amount of HK $7,500, which is more suitable for small amount payments.