International money transfers are exchanges of funds between two parties in different countries. This type of exchange is often done electronically, and may be referred to as an electronic funds transfer, or EFT. Transferring money from one country to another commonly requires the conversion of currencies and fees may be imposed on the sender, the receiver, or both. Since regulations regarding international money transfers vary from one country to another, a bit of experience may also be helpful.
Funds are exchanged between people in different countries on a regular basis. This is possible because of international money transfer systems that allow the exchanges to occur without currency actually being moved across borders. Generally, overseas money transfers are electronic, which means that credits and debits can be made to and from accounts without any currency being touched.
When a person wants to transfer money overseas, he needs to decide how he would like to do so. There are several options available for those who need to conduct these types of transactions. Certain options, such as bank transfers and wiring services may be accessible to those who have access to those facilities. Options such as online money transfer, however, are only accessible to those who have access to the Internet.
The manner in which a person sends money overseas often determines how the receiver can get it. When bank to bank transfers are done, the receiver may be able to get the funds deposited into his account, get paid out in cash, or he may be able to request a check. When wiring services are used, a person is generally limited to going to a branch office and receiving the money in cash.
When sending money to another country, there is often more to consider than whether the exchange is possible or how the process works. People must be cautions about the fact that international money transfers are subject to regulations that can greatly vary from one country to another. Although a person in Canada has the ability to send money to South Africa, the recipient may not have the ability to receive it.
Another concern with international money transfers is determining the currency that the recipient will receive. In some countries, if a recipient is owed $100 US dollars (USD), he will receive that amount in American currency. In other countries, however, the $100 USD will be converted to the local currency and the equivalent amount will be issued. When local currency is issued, the amount that the recipient receives can vary from one day to another or even during the day. This is because the conversion is often based on the exchange rates, which are generally in flux.