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7 Mistakes to Avoid When Transferring Large Amounts of Money

Transferring money has never been easier. Nowadays, you have many options, from banks to online services. The thing is that each of these includes different types of features that can affect the cost as well as the time required. Plus, there are always additional fees that usually increase simultaneously with the amount of money you want to send.

If you want to send a few hundred dollars to your family across the country, you are probably not too concerned about these, but the additional cost can be quite hefty if you need to transfer a few thousand dollars. Also, in a situation like this, most people worry about the safety of the transfer, that is, they want to be certain that the other person will receive the exact sum.

Due to this reason, sending large sums of money can seem a bit complicated. After all, there are still some people who aren’t fully confident when it comes to online services. So, in the following article, we will give you some tips and tell you about the most common mistakes you should avoid.

Check the recipient’s information

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The most frequent mistake that a lot of people make is writing down the wrong account details of the recipient. You would be surprised how often it occurs. Usually, people provide the wrong bank account number, and naturally, the money can get where you want it. This doesn’t mean that it is lost forever, but it can be a lengthy process to trace the money and get it back. There is a limited time period during which you have to report a mistake, and this entire process differs between banks and services.

Because of this, make sure to provide the full name of the recipient, their address, and the account number, the currency (we will talk about this later on), and all other information required. Make sure to double-check if you have written these correctly before authorizing the transfer. What’s more, don’t forget to check with the other person if they have received the funds.

Don’t forget about the exchange rates

The thing with these is that they can change very quickly. If you don’t investigate them before transferring money, the chances are that additional feels will be higher. Sometimes, it is not enough to check them the day before because they can change due to new market conditions.

In order to save extra funds, you should firstly check the rate by different providers. Oftentimes, these vary, and when sending a large sum of money, this difference can be significant. In addition, you should always read the fine print on the transfer form, and if possible, do research and make the transfer at the best moment possible to get the best rate.

Investigate the service

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Conducting the investigation of the chosen service is another step that many people skip. As already mentioned, these can greatly differ, and some of them might also have the restriction when it comes to the amount of money you can transfer.

Depending on the sum, you might be required to make two transactions, and that might not work for you. On the other hand, they might offer some additional discount. Due to this reason, it is crucial to have a chat with the representative of the bank or online service, introduce them to your situation, and discuss the best possible option for you. If you want to get some general guidelines on how everything works, visit this website.

Convert the money before making the transfer

We have already mentioned how exchange rates work and that you have to carefully inspect them before converting the money, especially if you are doing it via the service you want to use to send the funds. Nevertheless, it is probably a better idea to do this beforehand. Keep in mind that the rates can change before the recipient gets the money, meaning that they can get an amount that is smaller than the one you transferred initially. If you are sending cash to your kids, this can be okay, but it is definitely something that you want to avoid if you are making any kind of business payment.

Inquire about additional fees

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When transferring money internationally, you cannot avoid the additional cost, and most banks will charge you upfront for it. However, there might be some hidden fees that you are not aware of. First of all, you might be charge the fees of a third-party bank, that is, the one that transfers the money between the countries. Secondly, you can also be charged by the bank the recipient uses for delivery fees. Finally, don’t forget about the conversion fee that isn’t always charged upfront. However, some services have these fees only if you exceed a certain limit, so this is another thing you should investigate beforehand.

Ask about the delivery period

If you need to get the money to the other person as soon as possible, one of the most important things you have to investigate is the delivery period. Numerous factors can affect the duration of this period, and it can take anywhere between one and five business days for the money to reach its final destination.

You will probably come across the services that offer same-day transactions, but you have to know that you will be charged extra for this. Firstly, you have to pay for the service, and then they might use the least attractive exchange rate. Plus, this might not always be possible, depending on the country you are sending the funds to.

Ensure the security

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The final thing you have to do is ensure that the service you have chosen can provide you with the utmost security. Due to this reason, our advice is to avoid the ones that aren’t transparent, meaning that they avoid any of your questions. Transparency is the most important feature of every bank, so if you cannot get all the information and answers you need, it is a red flag, and you should turn to some other provider.

About Stefania Trtica

Stefania Trtica

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