International Money Transfer Service: Taxes and deductions are some of the limiting factors for international money transfers. The question in most readers’ minds is how to avoid the taxes and deductions associated with international money transfers. Here are tips and tricks to preventing unreasonable taxes and deductions on international money transfers.
Check the Rates and Fees of the Money Transfer Service Provider
Do not be taken in by the low rates and fees offered by money transfer services. However, the rates and fees charged for international money transfers vary widely, and you should always confirm the actual charges with a reputable money transfer service provider.
Use a Currency Exchange Service to Avoid High Transaction Fees
It would be best always to opt to use a currency exchange service when you want to make an international money transfer. For example, a currency exchange service will not charge any transaction fees, as all transactions are done online. You can also use online banking to pay your bills from abroad through your local bank account.
Consider Using an International Money Transfer Service Provider that Offers Free Transfers
Some international money transfer service providers will offer free transfers for specific amounts, especially if you transfer small money. Free transfers may help you avoid high taxes and transaction fees associated with international money transfers. The drawback is that there is no guarantee that the free transfer will be processed promptly.
Consider Using an International Money Transfer Service Provider that Offers No-Fee Transfers
Some international money transfer service providers will offer no-fee transfers. However, no-fee transfers may help you evade high transaction fees associated with international money transfers.
Ask For Cash Refunds
If you spend a lot of time in the country where you are transferring money, you should ask for a cash refund when you return home. In addition, some international money transfer service providers will offer cashback on amounts that have not been transferred.
Consider Using a Mobile Money Transfer Service Provider
Mobile money transfer services allow you to transfer funds using your mobile phone. This is especially useful if you want to make an international money transfer while traveling outside your country of residence. For example, you can use your mobile money account to send and receive funds at any ATM or POS terminal supporting this transaction type.
Money Orders
Money orders are a type of international transfer sent by mail. You can buy a money order from your local bank, credit union, or Post Office branch. The sender will then fill out the money order form and send it to the recipient. Charges on money orders are lower than those for international money transfers.
If you are sending money to a foreign country, you should ensure that the recipient is willing to accept your money orders. It would be best to consider where the recipient bank is located in relation to the country you have sent your money. For example, if you send a cashier’s check or money orders, ensure that your payment amount is correct before sending it. You can always find additional information about sending money on Western Union.
