July 19, 2024
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4 Common Money Transfer Mistakes and How to Avoid Them

The COVID-19 pandemic caused many people to become victims of money transfer scams. In fact, romance scams in particular spiked up by 50% in 2019.

There are several benefits to transferring money online instead of the traditional way. To reap those benefits, you’ll need to know about the common money transfer mistakes and how to avoid them.

Read on to learn more.

  1. Not Checking Different Rates

One of the most common money transfer mistakes you can make is not looking around for different exchange rates. This is especially important if you want to send money abroad.

This can get confusing for those that aren’t aware that currency values and exchange rates aren’t the same. While exchange rates change, currency values stay the same everywhere.

Banks and other providers might add margins to their exchange rate to favor them. It only takes a few minutes to check a rate from the source.

You can use services like Transferly to send money internationally at low rates.

  1. Ignoring Transfer Timing

One money transfer service might take longer to deliver funds than another. If your payment has a deadline, it is essential to check the timing.

Holidays are going to hinder the money delivery period. If a holiday is on the day you are sending money or one is coming up in the next few days, your transfer could get delayed.

Another factor that could lead to a longer transfer time is the payment method. Believe it or not but not all payment methods are the same. An ACH payment can save you from paying fees but will take longer to process.

  1. Becoming a Victim of Scams

Safe money transfers are not always easy to come by because of the many scams out there. Like anything to do with money and your personal information, someone out there wants to exploit it.

Before paying for money transfer fees and sending your payment off, ask yourself these questions:

  • Do I know who I am sending money to?
  • Have I confirmed why they need the money?
  • Is the situation odd or suspicious in any way?
  • Is the provider I am using established and secure?

Always double-check before sending anything. Deal with fraud as it occurs not after you have sent money.

  1. Only Using Banks

If you are sending a large amount of money, you might feel safer using a bank you’ve used for years. However, it can lead to high rates and fees and slower travel times.

When you tack on the fees from using a bank service, the price is going to shoot up more than you’d probably like. Because bank working hours are limited, your transfer could take longer to deliver.

Don’t Make These Money Transfer Mistakes

Nowadays, everyone transfers money because it is easier, takes less time, and is cost-efficient. When you transfer money safely, you don’t have to worry about losing the funds that you need.

If you avoid these money transfer mistakes, sending money will become easier than ever.

For more articles with advice on financing, check out the other posts on our blog.