Complete Comparison of Overseas Remittance Methods | Reap

Complete Comparison of Overseas Remittance Methods


2 min read

Remitting money to foreign countries could annoy everyone. Which international remittance methods should you choose? What is the major difference between those overseas transfersolutions? 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 Amount

International bank remittance, as known as telegraphic transfer, is the remittance method amongst banks by telegraph or telex. The biggest benefit of telegraphic transfer is that the bank can send a certain amount of money to the recipient’s account regardless of his/her location. Apart from telegraphic transfer, there are mail transfer and demand drafts, which are too slow compared to telegraphic transfer. That’s why people usually prefer telegraphic transfer. However, telegraphic transfer involves multiple banks, and each bank requires transaction fees, which could be expensive and complicated. Compared with other international remittance methods, telegraphic transfer fees are usually charged at a specific price for each service and unlikely to be based on the percentage of the transfer amount. If we need to transfer a large amount of money and are not in a rush, telegraphic transfer will be a great solution. Want to know more about telehgraphic transfer? Please refer to our previous article about telegraphic transfer.

Online Payment Platforms: Easy and Quick

Telegraphic transfer could be complicated, which may require you to verify the transactions at banks or to fill in a form. However, online payment platforms solve these issues. Out of all online payment platforms, Reap is relatively convenient. Why? You only need the bank account number of your payee to complete the whole transfer, meaning your payee doesn’t need to have a Reap account. For international transfer, Reap takes only three to five working days. Comparing with other platforms that require payees to have an account on them, Reap is simpler and more direct on paying out. The transaction fees for Reap are also more competitive than other platforms, for example, Paypal’s overseas transfer charges 4.4% + fixed fee meanwhile Reap is only 2.6%. You can also pick your credit cards to earn the most rewards, so your payments are technically cheaper now. If your payment is in rush, or you want to use credit cards, you can consider using Reap.

However, Reap still has its weakness as it doesn’t support bank transfer and requires receipts for your transactions. If you don’t have a credit card, then you can’t use Reap. To deal with this issue, you can consider using Transferwise. This platform is good at the speed of transfer, which can be done within seconds, and you don’t need to provide receipts for your payments. Transferwise doesn’t have a fixed rate for payments—basically the more you transfer, the cheaper the rate gets. But you can’t have your cake and eat it too. If you want to pay in credit cards or debit cards, Transferwise will charge you extra handling fees of HK$263.85 plus a transaction fee for every HK$10,000. The transfer limits of credit cards and debit cards are very low. Regardless of your currencies, you can only transfer HK$20,000 at maximum. Also, Transferwise is converting currencies using their own exchange rates where Reap is using three different foreign exchange companies to pick the best rate, it’s very likely that Transferwise’s rate is more expensive.

Besides, the logic of Transferwise is a bit weird. In contrast, Reap’s fees are very simple and clear—your payee gets how much you transferred, and the transaction fee is calculated separately. Transferwise is the opposite—they deduct transaction fees from your payment, then convert it into a foreign currency to transfer to the recipient’s account. Basically, it means that it’s harder to know how much you’re transferring on Transferwise compared to Reap. Whenever you’re using Transferwise, you may need to check your transfer amount carefully to make sure your payee gets what they requested, in order to avoid misunderstanding and arguments.


Transfer via E-wallet—Connecting with Western Union

If you only need to transfer small amounts overseas, or your recipient doesn’t have a bank account, then you can consider using the international transfer service of Tap&Go and Western Union. Simply click “Transfer” on the menu, you will be redirected to the Western Union app, then you can start transferring overseas. Western Union service locations cover over 200 locations globally. Your payee doesn’t need to have a local bank account, and the transfer from Tap & Go through Western Union doesn’t require any handling fees. The only drawback is that you can only transfer a maximum of HK$7,500 each time, which is more suitable for small amounts of payments.