International money transfer

Introduction

This is the transfer of money involving a non-cash form of money. This form of money transfer has the following modes of payments:

Wire/Credit transfer

This transfer is electronic and it is done from one individual or institution to another the method is considered more secure as each and every account holder must have a proven identity

Electronic funds transfer

 It relies mostly on computer-based systems and can be done within an institution or by different institutions.

Email money transfer

This is mostly based in Canada and involves both individual and institutional accounts .it is common in Canadian financial institutions.

Giro transfer

This is done from a bank account to another bank account and the transfer comes from the person who is paying transferring money to the payees.

Transfer by Companies.

 This involves international transfer companies like Western union, Moneygram etc. they are the most commonly used money transfer methods.

Mobile money transfer

This is the type of money transfer which involves mobile phones,it was started by safaricom a company in Kenya and which is part of Vodacom of the United Kingdom and it is rising to popularity with many people acquiring mobile phones.

Advantages of international money transfer 

This form of the transfer is fast compared to the distance that is covered, other alternatives like cheques takes a longer time compared to this.

ii.      The transfer is more flexible and one can easily move money from one bank to another or even from one country to another without following long procedures.

iii.    This transfer is more secure considering there is no money in cash-form, it just needs use of passwords and security checks that only the involved parties are well informed.

iv.     This mode of money transfer promotes foreign currency exchange as the sender sends in their own domestic currencies which is later converted in to the other currency depending on the rate of currency exchange.

v.       Some international money transfer systems eg giro transfer do not require the immediate assent of the receiver unlike email transfer where both the sender and the receiver must intervene.

Disadvantages of international money transfer

I.                    Due to changes in currency rates of exchange the transferred amount might end up being less than the intended amount as it reaches its destination because of high rates of exchange between the two currencies.

Requirements for international money transfer

For one to send or receive money by international money transfer the following information is required:

I.                    Official identifications of both the sender and the receiver.This is to verify whether the sender and receiver are disclosing their real identities and to avoid loss of money.

II.                  The bank account of the receiver, the banks swift code, address, bank account number. This is to ensure that the money goes to the intended receivers account.

III.                The time at which the money is sent is also essential and is required and the time it is withdrawn is also recorded.

Conclusion

From the above illustrations we have seen the various forms of international money transfer and their merits and demerits.