A cross-border money transfer is a financial transaction where the sender and recipient are located in different countries. Transactions are usually carried out through a SWIFT transfer or international money transfer services.
Convenience, high speed, and low cost compared to bank transactions have made online money transfer services mainstream. Their lucrative offers have outplayed the banks because SWIFT transfers are less convenient when you send money for personal purposes.
According to the World Bank, US residents send $74.6 billion annually to individuals in low- and middle-income countries. European demand for cross-border money transfers is not as high, but a flurry of international remittances has begun in recent months.
What do you need to know when sending money via SWIFT transfer?
Cross-border money transfers via SWIFT are time-consuming. First, it might be a good idea to check whether the recipient’s bank can receive a money transfer from abroad.
You will then need to provide details of your account and the recipient's account to whom you want to send the funds. This will include the following:
- Bank names,
- Account numbers,
- ABA routing numbers,
- The names of each account holder.
However, if the beneficiary's bank does not accept payments from abroad, the beneficiary may have to open a new account with another bank, which implies wasting time on visiting a bank branch and going through thorough identity verification.
Money transfers through a bank are always protracted. You may have to wait for up to five or even more working days. The transaction may be suspended if, for example, you have made a mistake in any required details. SWIFT is likely one of the worst ways to send money if you want to transfer money quickly.
Some financial institutions require extra steps for SWIFT transfers when sending a considerable amount of money. You may also need to confirm the bank transfer by phone and use electronic or paper forms to securely complete your request. It is the opposite of how people are used to sending money online.
Although the sender pays the transfer fee, recipients may also be charged a fee for receiving the money in their account. Banks usually have a fixed commission of tens of euros. Additionally, you might have to pay a percentage of the transfer amount, but at least a certain amount determined by the particular bank. It is always wise to check the rates applicable to SWIFT transfers at the specific bank.
Why are apps to send money more beneficial than money transfers through banks?
When it comes to money transfers, velocity is vital. Recipients need to know that they don't have to wait several days for their money to arrive in their bank cards. That's why money transfer apps compare favourably with bank services.
1) Convenience. Typically, a cross-border money transfer service provides the user with a simple way to register by phone number through the website or a smartphone application.
2) Instant account opening. The customer journey from registration to sending funds takes 3 to 5 minutes, even if you use the service for the first time. One of the fastest-growing money transfer services in Europe, Profee has a highly user-friendly, intuitive, and self-explanatory interface. Since the money transfer apps are narrowly focused, they work out each step of their operation thoroughly and invest a significant effort in learning to anticipate the wishes of their customers.
3) Easy. You only need the bank card number and the recipient's name as shown on the card. This is the minimum amount of data for a transfer you will never encounter at a bank.
4) In addition to the pace of the customer's journey, the speed of money delivery is crucial. The advantage of a Profee card-to-card transfer is that it is almost instant.
5) Low flat fee for money transfers. Profee money transfer service ensures a fixed commission of 1 euro, regardless of the amount, transferred from European Economic Area countries. In addition, the company often runs promotional campaigns whereby transfers to specific destinations are free of charge. It is worth noting that the sender always knows the final amount of money to be credited to the recipient's card.
6) Advantageous currency exchange rates. Profee's exchange rate is close to the stock exchange rate and is certainly on par with the bank rate. Yet another reason why this is the best way to send money through a money transfer app.
7) One can use the Profee app and website to transfer to Visa, Mastercard, some local payment systems as well as to bank accounts via SEPA. Transfers are made from VISA and Mastercard cards issued by any European bank.
8) The sender’s card is required to support the 3D Secure payment technology. This allows transactions to be confirmed via SMS. Profee is annually certified by PCI DSS security standards and uses Tier4 data centres to ensure maximum fault tolerance and protection of customers' data and funds.
Cross-border money transfers through dedicated services and payment systems are undoubtedly much more favourable and efficient than transactions via banks. By sending money using Profee's international money transfer app, you can save a hefty amount and ensure the money reaches the recipient quickly and safely.
