Many people have transferred money over the last few years, yet people still make mistakes from time to time. Some of these mistakes are made because they overlook something, or sometimes, the problem is misinformation. Whatever the case, knowing 10 of the most common money transferring mistakes can help you avoid them.
1. Not Expecting a Fee
Some people planning on transferring money forget that a fee exists. So, it is always a good idea to make sure you go to the establishment you choose with a little extra to pay this fee. You don’t want to go back and forth, especially if you need to send money quickly to a family member or friend in Mexico, England, or wherever they are.
2. Ignoring the Exchange Rate
A mistake you don’t want to make is not paying attention to the exchange rates. These change day by day and you want to make sure you pay attention to them as they change. Some days your dollar is going to be worth more, and sometimes, the currency is going to be worthless. You want to make sure you go when the rate is favorable, which means the recipient will get a little more, even though you are sending the same amount you would have sent any other time.
3. Wrong Establishment
There is such a thing as choosing the wrong money exchange establishment. Some of these locations are not worldwide, so it may be hard to find one in other countries. This could make this unnecessarily difficult for your loved ones in Mexico, Cuba, England, or wherever he or she is. What you want is a place that offers this service with minimal fees, so make sure you check with a few places and write down which ones offer you the best prices. Make sure the place has good reviews as well.
4. Overlooking the Sending Location
Sometimes, people make the mistake of sending money without thinking about the ideal location for the recipient. Some of these locations are scarce throughout the region, and you may only find them in big cities. For example, before you send money to Mexico from the US, confirm the address of the establishment you are going to send the money to. Then, you can send the money knowing that your loved one is going to have an easy time picking it up.
5. Not Considering the Transfer Option
Another mistake some make is not considering the method to send the money. Some prefer to do it through the transferring specialist using cash, expecting that the person on the receiving end is going to pick up the money. Others prefer a direct deposit though sometimes banks can be a little tricky and could even hold the money before making it available to your loved one. There are others who prefer to get the money transferred through a card. Make this decision beforehand.
6. Not Checking Sending Limits
People who need to transfer a lot of money throughout the course of a month to places like Mexico or another country need to remember that the government is going to want to know why you are transferring so much money. When it is a small amount of cash, no one will bother you, but there are cash transferring limits. You need to know these limits before you get started. Ask your money transfer specialist to see what your limits are or how close you are to reaching them.
7. The Wrong Name
You have to input the name of the recipient, and this name is then inputted into the computer system at the money transfer specialist’s office. Having to manually write and input into a computer means there is a chance for human error. You’d be surprised how many people deal with this problem and end up sending the money to the wrong person. You don’t want to be one of these individuals. Double-check the name, and ask the specialist if you can see the name on the computer to make sure things are okay.
8. Using a Credit Card
Many money transfer locations don’t accept credit card payments. Most of the time, they run the credit card as a loan request, and this means you are requesting a loan from your credit card provider. This can cost a little more money than you expected, so make sure you are aware of this. It is better to deal with debit cards or to pay directly with cash.
9. Not Budgeting
You are sending money to another country, and that means it is coming out of your pocket. There are some people who forget to budget the amount of money being sent. Sometimes, this is simply because it is a small amount, so you aren’t too worried about it, but every little bit counts. Make sure you know what you are sending and how it is affecting your bank account.
10. Going to the Bank
Transferring money using the rates at the bank is generally not a good idea. Some people do it because they know their bank or because they think a big bank would offer the best rates, but that is not the case. These institutions may charge high fees, so consider avoiding them. Worse of all, some of them do not pay attention to exchange rates, and that could work against you.
These are just some mistakes that are made when transferring money to Mexico, India, Canada, or wherever your loved one or friend is. Keeping the information above in mind should help reduce the chances of making a mistake.