Sending Money Abroad

How is a money transfer abroad carried out? Is it always reliable? How much does it cost?
Here are a few answers.

The purpose of a money transfer

A money transfer is a way of sending money (cash) abroad. It can be used for various reasons. For example:

• You no longer have your credit card or cash on hand following a theft or loss.
• You are in a situation of financial insolvency.
• You've had to deal with unforeseen expenses.
• As an Erasmus student, you haven't planned your budget properly and ask your parents for a bit of financial help.
• You want to send money to a recipient living abroad (an expat or a local).
• …

Depending on the transfer method chosen, the transaction can be carried out fairly quickly. An online transfer can be immediate. On the other hand, you may have to wait several days for a cash transaction.

Is a money transfer reliable?

To assess how secure a money transfer is, you first need to understand how it works.

Online transaction

Online transactions (by credit card) are carried out either through your bank or through an online payment service (Transcash, Nobanco). They are given a tracking number that allows them to be followed. Online payment is secure and can be recognised by the mention “verified by Visa” or “verified by MasterCard SecureCode”. The payer is required to provide certain personal details (e.g. their date of birth) and/or a code sent beforehand by SMS. This step is used in particular to prevent fraud.

The intermediary – such as an exchange office or a bank – through which the transfer is made, is released from all responsibility for the transaction as soon as the transferred money is collected. It is therefore not possible to recover it afterwards. So you need to be careful and make sure the recipient is trustworthy.

Cash transfer

While online transfers are secured by Visa or Mastercard, cash money transfers are not. They are carried out through authorised agencies (Western Union, MoneyGram, MoneyTrans). A method favoured by fraudsters of every kind, a cash transfer should only be used when you fully trust and know the identity of the recipient. It's recommended not to send money to buy goods without any guarantee they exist, to support a local cause you know nothing about, or to a person you don't know, without being certain it isn't a scam.

What are the costs?

Keep in mind that a money transfer to a foreign country can incur fees. Online transfer platforms are generally cheaper in the long run than banks, since banks charge various fees on your money transfers in a foreign currency:

• Transfer fees correspond to the cost of the transfer that the bank charges per transfer outside the euro zone. Some banks also charge fees when receiving a transfer in a foreign currency.
• Withdrawal fees are charged when withdrawing money from an ATM or at the counter, depending on the bank. These fees are usually around €5.
• Exchange fees are the commission the bank takes when you need a foreign currency. This is equivalent to the difference between the actual exchange rate and the rate applied by the bank.

For a cash transaction, exchange offices apply their exchange rate as a percentage of the amount exchanged. So you'll pay less by exchanging, say, €100 into a foreign currency than by exchanging €2,000. For larger amounts, online platforms and ATMs are the better option. Don't forget that a transfer is subject to various fees when carried out in a different currency.

Despite its costs, a money transfer can save the day. In any case, make sure you find out about the various fees linked to your transactions.

Money transfer through your travel assistance provider

A travel assistance contract usually includes the option of requesting a money transfer abroad in certain cases: in the event of illness, an accident, a breakdown or theft. Most of the time, the transfer amount is capped (max. €2,500). The assistance company will need to receive a deposit of money from a person you've named, who is willing to help you financially. The money will then be handed to you on the spot, at no extra cost, through local correspondents. You therefore won't have to worry about the administrative process or the reliability of the transaction.

This article was written by TopCompare.be in collaboration with Redion.\