Why would anyone use an electronic funds transfer (EFT) when there are so many other choices to send money internationally? Are EFTs really a better option for international remittances than using a traditional postal service? In this article we will compare the benefits of electronic and postal funds transfers.
The advantages of electronic funds transfer include ease of use, faster processing times, better routing information, and more consistent transfer rates. Another benefit is that you do not have to enter your account number every time you send money to a friend or relative abroad. If you use your credit card to pay in your local currency and then convert your payment back to the local currency before it reaches the recipient, your bank will deduct the amount you owe the recipient. Most people prefer to use their credit cards for this type of transaction rather than writing a check.
In addition to the benefits of EFTs, there are some disadvantages as well. If your correspondent uses a third party service that is slow to process international wire transfers, or if the recipient has a poor credit history, your first choice may be to use a standard postal service. However, if the recipient’s account has been frozen, your funds will be held up in the local currency that he or she received as a result of this problem.
Direct Deposit: Most direct deposit services provide a “catch-all” solution for your remittance needs. You can choose a direct deposit provider that offers “Premier Direct Deposit” or the “Premier Direct Deposits”. The Premier Direct Deposit service guarantees the fastest processing times, deposits directly into your checking account, allows you to request additional deposits, and you have instant access to your accounts anytime and anywhere you have an Internet connection.
In addition to “Premier” services, there are some other tiers of service. The “Custom Direct Deposit” service provides you with much more flexibility than “Premier” Direct Deposit, but your account must be open and in good standing before you can qualify for this service. The “Express Direct Deposit” service provides you with faster online processing times and expedited deposits into your account.
The Postal Money Transfers service does not guarantee the fastest processing times, and you have to mail your payment to the recipient. These fees can be substantial, so if you only need a small amount of money transferred overseas, this may not be a good choice. As far as routing information goes, most countries offer their own international banking service, so you have to use your own provider of choice for that.
Choosing the right provider for your needs can be a challenge. Some companies can offer a variety of international services, while others will only do one or two things, leaving you in the dark about how to get the most from your money transfer.
Of course, there is always the option of choosing a third-party service that charges a processing fee. There are other options for doing this as well, such as a USPS Money Order, which will allow you to send money on behalf of the recipient.
Although an international remittance is less secure than sending via a personal account, you should still make sure that your recipient is aware of the risks involved. Most recipients of these types of payments cannot be expected to know that their account will be frozen. Before sending your personal checks or electronic funds transfer, you should check out a few of the available online services to find the best route for your situation.
If you are sending money from a personal account, you might consider just requesting that your recipient wire you their funds directly. While this may sound simple, it is important to have your recipient fully understand that this is not an option. It is best to go to the trouble of writing a check and then having it cashed from your account on the same day as the transfer.
If you have a preferred international service that can be contacted at the same address as the funds are being transferred, you should be able to ask for a payment before the money is transferred. This ensures that the sender will get his or her money on time and in full.