Money transfers abroad can be done by individuals or companies. The purpose of the transfer can also vary.
There are a number of methods for transferring funds abroad provided by several financial service providers, each with unique characteristics. Here are 5 ways to transfer money abroad.
Western Union services is one of the most popular methods. Outlets providing this transfer service are spread across various locations. From minimarkets to post offices, even in small towns. It's quite easy to find a Western Union in these places.
Western Union money transfer is also pretty simple. You just need to visit an outlet showing their logo and provide your complete identification. You also need the complete identification of the recipient. The fund sender is not required to have a specific bank account when transferring funds.
Once the funds are transferred, within a relatively short time the recipient will be notified to draw the money at their nearest Western Union agent in their residence. The service fee applied by the service provider itself varies depending on the transaction amount. If the nominal transaction amount is small, for example below IDR2 million, the service fee can be about 10 to 19% of the money transferred.
Moneygram works in much the same way as Western Union. You just need to come to the outlet displaying a Moneygram logo near your residence and show the identities of the sender and the recipient.
The recipient will be notified to pick up the money once it's received. The service fee is based on the amount transferred and the destination country.
Several banks in Indonesia are also enabling their customers to transfer funds abroad. Interbank fund transfers to countries all over the world can be done by visiting the teller in the nearest branch of their bank.
Customers transferring funds abroad will be asked to provide the complete identification of the recipient and the recipient's bank account details. The sender must also know the SWIFT code of the recipient bank.
International interbank transfers can sometimes take up to a few days to complete. This is because the sending bank needs to go through specific steps, for example a correspondence bank, before reaching the recipient's account. Each bank will also usually apply a transaction fee. Transactions using this method can be done individually or by companies, either with saving accounts or BACS / CHAPS.
PayPal is a virtual facility that holds the balance. You can move money from your personal bank account to a PayPal account. This can then be transferred to someone else's PayPal account. The account owner receiving the PayPal balance then withdraws the amount to their personal bank account.
This method is quite practical and fast. Transaction fees may apply throughout the transfer process between PayPal accounts. Additionally, when transferring a bank account balance to a PayPal account and vice versa, fees may also be charged. One of the conditions to register with PayPal is that you have to own a valid Mastercard or VISA card.
For customers of a bank operating globally like HSBC, an international transfer facility will usually be available and financial arrangements will be easier.
At HSBC, our business and private accounts come with features to send funds abroad in real time. Our Global Transfer facility gives you the convenience of instant transfers between HSBC accounts. For certain types of account, transfer fees don't apply.
There are various ways to send funds abroad. Choose which method is most suitable and cost effective for your needs.
