Mistakes to avoid when making International Wire Transfers

International wire transfers are efficient, fast and cost-effective. However, they can become a costly and time-consuming problem if you miss any of the following steps:

Comparing Wire Transfer Service Providers

One of the first mistakes you can make with wire transfers is not comparing the services offered by different transfer providers. Different wire transfer providers charge different fees and exchange rates. It is important to compare providers as well as banks offering this service. If you opt to make the transfer via a bank take into consideration that you may need to pay fees to both the sending and receiving banks. On the other hand, non-bank transfer providers generally charge lower fees and offer better exchange rates than banks. The type of transfer you make will also affect your choice of provider – if you are sending a large amount or plan on making frequent and regular transfers then a foreign exchange dealer may be the better choice for you.

Miscalculating Wire Transfer Fees

When making an international money wire transfer there are two main expenses – the provider’s service fee and the currency conversion rate used when sending money in one currency and having it credited in a different currency. Both of these expenses vary depending on the provider. A common mistake when making a wire transfer is not taking into account both these charges. A provider may charge a low service fee but hit you with an unfavorable exchange rate or you may be given a high service charge but an excellent rate of exchange. Don’t make the mistake of not comparing these two expenses when choosing your transfer provider. Usually, SWIFT transfer is considered as a high-fee transfer

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Incorrect Calculation of the Wire Transfer Delivery Time

Another common mistake when making an international transfer is miscalculating the estimated time of delivery. It is important to do some research and find out how long the wire transfer will take. The speed of a transfer can vary from provider to provider especially when it is an international transfer. Most non-bank wire transfer providers offer several options for express delivery or slower delivery. The payment method can also affect the overall speed of the transfer. If you pay using a prepaid debit card the delivery time is usually faster but more expensive than payment by direct withdrawal from a bank. Don’t forget weekends and holidays in both the sending and receiving countries can affect delivery time.

Incorrect Account Details

One of the most frustrating mistakes you can make when placing a wire transfer is to provide the incorrect account details for the sender or the recipient. This results in time-consuming delays and increased fees. International wire transfers require full bank details and routing numbers of both the sender and recipient. The number format and required codes can vary from country to country making the process complicated. If the incorrect details are provided you could find your money being sent to a stranger’s account and have to use valuable time and resources to correct the mistake.

Currency Conversion Problems

To send funds in one currency and have it arrive in a different currency, currency conversion needs to occur. For example, if you are wiring money from your dollar account in the US to a Euro account in Germany, somewhere along the line there has to be currency conversion in order for the correct currency to be credited to the recipient’s account. If this step is missed, your transfer may be rejected or the foreign bank may convert your money at a higher exchange rate for an additional fee. This can result in the recipient getting funds in the wrong currency or receiving less money than anticipated.

Making a Safe, Fast and Effective Wire Transfer without Mistakes

International wire transfers are a great way to send money between countries if done correctly. You can easily transfer money to people across the globe if you are careful to avoid these common mistakes. If you have any questions about how to avoid making mistakes when sending a wire transfer you can consult with our experts at GBO.

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