International Money Transfers for Law Firms

Whether sending an inheritance to an overseas beneficiary or handling a large commercial business acquisition, choosing the right international money transfer service can equate to thousands of dollars saved. Stop using the big banks and consider the services of a global remittance firm to handle your money transfer needs for:

  • Facilitating a client’s purchase of overseas properties
  • Personal injury claim payouts
  • Sending an inheritance to an overseas beneficiary
  • Managing trust funds of client’s living overseas
  • International business mergers and acquisitions
  • Payments to consultants based overseas
  • Divorce settlements
  • Patent and intellectual property cases
  • International rent and payroll payments

As a law firm acting in your client’s best interests legally and financially, it is important to look at every option to save them money and ensure they are using the smartest processes for handling international transactions. Using a global remittance firm instead of a bank to send or receive money overseas is one of the easiest ways to save.

 

Why Banks are a Poor Choice for Sending Money Overseas

There are a number of aspects that should be considered during an international remittance from the speed at which the funds will be available to the fees and commissions charged for the service, but the exchange rate is generally where the most money is lost. Despite playing such a large role on the value of an international money transfer, it is often overlooked. Many law firms just consider the fees and commissions charged without regard to the exchange rate. They assume that most servicers will offer similar rates, but this couldn’t be further from the truth.

Banks are known for offering the worst exchange rate of any option, usually by 3% to 4%, plus they have the highest fees. Poor exchange rates are how banks make the largest chunk of their money from international transactions. You’ll often see banks offering the same exchange rate as you might find at an airport currency exchange booth, which are also known for giving the worst exchange values.

Here is a quick example of the money that can be saved using a dedicated money transfer firm as opposed to a large bank.

Example

Transferring $10,000 USD into EUR

Wells Fargo currency exchange rate quote

  • $10,000 USD = €8,505 EUR

USForex currency exchange rate quote

  • $10,000 USD = €8,883 EUR

That’s a savings of €378 EUR on a single transaction, not even including the additional fees that Wells Fargo charges.

*Currency values fluctuate daily and the exact amounts displayed might differ*

 

Benefits of Using a Dedicated International Money Transfer Firm

In addition to the obvious financial benefits of working with an FX firm, there are numerous other areas where they offer added convenience and efficiency.

  • 27/7 online account access
  • Real-time rate quotes
  • Forward contracts and currency options for risk mitigation
  • Segregated accounts for easy accounting and added security
  • Streamlined transfer processes such as regularly scheduled payments and integrating accounting
  • Advice and guidance from dedicated currency specialists

If your law firm is involved in any kind of international finance transactions, consult with a dedicated currency specialist at one of our Editor’s Choices and check our Send Money Cheaper Comparison Tool before initiating your next overseas remittance to find out how much money your firm could be saving.

 

How to Use SendMoneyCheaper.com for Cheaper International Money Transfers

Send Money Cheaper was created with one goal in mind: to help you find the cheapest international money transfers. We’ve created our Comparison Tool so you can compare the fees and exchange rates of multiple money transfer companies simultaneously, without wasting time going from website to website.

You may not know this, but there is not one company that always offers the cheapest rates. The amount of money you are sending, the way you are paying, the speed in which you need it to be available to the recipient, plus the destination and origin countries all affect the cost and will dictate which company you should be using. That’s why it’s important to use the Comparison Tool before every new international money transfer, unless you are repeating the same transfer you have done in the past like a regular small money transfer.

 

The Send Money Cheaper Comparison Tool

Our site has been created with the user in mind, so we have made it quick and easy to use. All you have to do is go to the home page and input the origin of your money, the destination, and the transfer amount. In seconds you will see a quick comparison of your choice of money transfer firms, their fees, and their exchange rates.

To make things even easier, we have created an algorithm that automatically brings the offer we believe to be your best choice based on price, exchange rate, and speed, right to the top. After your search results appear, you’ll also see a list of features on the left side of the screen so you can check what matters to you. Choose from things like the payment method, transfer speed, receiving option, and more, to filter out results that won’t suit your needs.

Once you have decided on the best company for your international money transfer, just click the convenient link and you’ll be brought directly to the transfer firm’s website so you can initiate the transaction.

 

Wait. There’s More

We didn’t stop there though. Send Money Cheaper is much more than just a comparison tool. We are a resource for anybody interested in international money transfers or the foreign exchange market. Our blog regularly covers a range of topics that will help you save money on international money transfers.

Whether you are an overseas retiree who needs to transfer their pension, have a child going to school overseas who regularly needs small money transfers, or are just considering a long international holiday and want to know the most cost effective of getting and using your money abroad, we have articles that can help. We also do a weekly news update on the most current happenings in the international money transfer industry.

 

Your One Stop Money Transfer Website

Since we are an unbiased third party, we are your best bet for finding the most accurate information regarding any and all of your international money transfer needs. Our focus is the consumer and we are doing our best to bring a touch of transparency to the money transfer industry. Make SendMoneyCheaper.com your first and only stop for you next international money transfer and rest easy that you got the best deal possible.

Don’t Get Scammed by PayPal‘s Secret Hidden Fees

Paypal is an incredibly convenient tool for transferring money. Whether you are sending money to an employee located in another state, buying a product online, or just need to transfer money to somebody in another country, PayPal does it all. They have over 150 million active users and many of them are small business owners.

One of the reasons PayPal has so many users is because its fees seem very reasonable; at least on the surface anyways. When you compare the listed transaction fees with similar money transfer services, you may think you are getting a good deal, but it couldn’t be further from the truth. The problem isn’t in the listed fees, it’s the hidden fees they charge that really get you.

We’ll just set the record straight from the beginning as we aren’t trying to unfairly bash a company that provides such a useful service. If you are transferring money from one place to another for personal transactions and keeping the same currency during the entire process, then yes PayPal is free. The problem is when you are transferring money from one currency to another. This is where PayPal really gets you.

 

PayPal Offering the Latest Exchange Rate is a Myth

The biggest chunk of your money gets lost during international transfers to poor exchange rates and not hefty fees as many people think. This is doubly true if you are sending a large amount of money. Think about it. If you are sending $2,000 overseas, even banks (which are known for charging the highest transfer fees) often only charge you $30 – $40, but if you get a bad exchange rate that is 3% off market value, you’ll be losing an additional $60.

So how bad is PayPal’s currency exchange rate? Well here are some quick examples that highlight just how much you might be losing on your next international money transfer using PayPal. I’ll use $1000 as a nice round sample number. Below you can see the exchange rate PayPal offered along with the actual current market rate to compare the difference.

$1000 from USD to EURO

PayPal = €897.54

Market rate = €924.40

 

$1000 from USD to British Pound

PayPal = £655.76

Market Rate = £675.20

 

$1000 from USD to AUD

PayPal = AU$1,274.20

Market Rate = AU$1,308.77

As you can see, while they may claim they are offering the service free of charge anywhere they have their terms of service printed, they are actually making a large chunk of money off you by offering a very poor exchange rate. Often, even worse than what you’d get at a bank.

 

The Cost of Doing Business

Let’s say you’re willing to chalk this up as just the cost of doing business internationally. Ok. Fair enough, but since I know you’re a savvy business person, you’re obviously deducting all of your expenses from your income so you can save on taxes right? Well here’s another shocker for you, PayPal won’t provide you any type of receipt or documentation with proof of the money lost in the exchange so you can’t even claim it.

Well, let’s rephrase that. You do actually get a receipt of the transfer from PayPal, but it shows a fee of $0.00. So even if you tried to use their provided receipt to show the loss of money in the transfer, you wouldn’t be able to. There is no documentation provided that will allow you to deduct the transfer and exchange fees from your taxes at the end of the year.

 

They Even Block Any Workaround

Just in case you had the same bright idea we did and want to try and open a currency account in your bank that operates in the same currency you get paid, they won’t let you. We tried it and PayPal informed us that unless it is an official currency of that country, they won’t send USD to it, so no sending USD to anywhere in Europe, Australia, etc. They will only send Euro to Europe, AUD to Australia, BPD to the UK, etc. You get the idea.

 

A Better Option

If you need to process regular international money transfers, use the Send Money Cheaper Comparison Tool to find the cheapest option for your needs. Next time you are planning an overseas money transfer between two currencies, use our comparison tool and check the results against the rate PayPal will give which can be found using their currency converter tool. (Hint: you’ll need to be logged into your PayPal account to access their convertor.) Doing this, you can see exactly how much you’ll save by not going with PayPal and using a dedicated currency transfer firm instead.

If you regularly do business overseas, check out How To Save Money When Doing Business Internationally for more useful tips.

You keep on doing your job making money and we’ll keep doing ours to help you keep more of it in your pocket.

 

Retiring Overseas? Transfer your Pension with an FX Firm to Save Money

Retiring abroad and living in some beautiful tropical paradise or a Mediterranean villa can be the ideal way to spend your golden years. Often the cost of living will be lower and your dollar will go further, ensuring you have the money to comfortably see you through your retirement. Before you take that long-awaited leap though, make sure you spend a bit of time getting your financials in order.

You’ll need to take into account your tax position and filing, moving your pension, transferring your daily spending money and more. Today we’ll focus on moving your pension.

 

The Best Way to Transfer Your Pension Overseas

Because of all the time involved in researching the best way to transfer pensions overseas, many people put it off until the last minute. Living on a fixed income during retirement though makes proper budgeting and a good money management policy doubly important and that includes ensuring your getting the best deal on transferring your money.

Using a bank for your pension disbursement is probably your worst option. The old school way of thinking was to contact your home bank or use their online service to initiate an international transfer, but the average person will lose around 8% of their money handling it this way. If your pension is $2,000 a month, the banks will be getting about $160 of that every time you make a transfer. That means you’ll be losing $1,920 a year to bank fees and poor exchange rates. That’s nearly a month’s pension!

A better method is to set up a regular international money transfer using a firm like World First or Xoom. The process is just as easy and secure as your bank, but the fees are much lower. Both of these companies offer free transfers and competitive exchange rates putting your total lose during transfer somewhere between 2% and 3% which is on par with the best market currency exchanges. By the end of the year, you would wind up with an extra $1,500+ in your pocket instead of the banks. That could be a month’s rent or your airfare flight back home to visit family and friends. We’ve also written easy to use guides explaining how to send money with Xoom and how to send money with World First.

 

Set Up Regular Transfers to Send Your Pension Overseas  

Making everything even more convenient is the regular money transfer options that World First and Xoom offer. Instead of wasting your time every month arranging a new transfer with your bank, you just set up an account with one of the previously mentioned services and elect for regular transfer schedule. This way, the money will be automatically debited from your home bank or pension account, converted into a foreign currency, and deposited into your foreign bank account on the date of your choice.

Using an international money transfer firm also gives you more flexibility in specifying the transfer amount and locking in favorable rates. You can choose to specify the transfer amount in USD so you know how much will be debited from your account every month, but you the amount you receive will fluctuate based on the current exchange rates. If you are more concerned with receiving a fixed amount, you can specify the amount to be transferred in the foreign currency of your choice which means the amount debited from your pension account will fluctuate.

To ensure you are always getting a good exchange rate on your transfers, you can set up forward contracts to lock in a fixed rate. Most of the international money transfer firms allow you to lock the rate for up to two years.

 

Sending Your Pension with an International Money Transfer Firm Quick Benefit Guide

  • Saves between 5% and 6% over bank rates
  • Time saving regular payment plans
  • No fees and competitive exchange rates
  • Ability to lock in favorable rates for up to 2 years
  • Added flexibility in specifying transfer amounts base on currency choice

 

 

How to Send Money Overseas with Xoom

Today we are going to give you a detailed guide on how to send money overseas using Xoom.

Xoom is an online money transfer firm based in San Francisco which provides remittance to more than 32 countries around the globe. You can see a complete list of the countries they service here. In 2013, Xoom’s 1 million+ active customers sent more than $5.5 billion to family and friends across the world, so they must be doing something right.

Xoom offers some of the cheapest and most flexible transfer services making them the ideal choice for a number of consumer and business transfer needs. Before we go into the guide, let’s start with some information about the services Xoom offers so you can decide if they are the right choice for your current money transfer needs.

 

Xoom Services

Xoom charges no fees for transfers over $1,000 and generally between $3 and $5 for smaller amounts. Payment can be made using your credit card, debit card, or directly from your bank account. Using the direct bank payment method, transfers take anywhere from 1 – 4 days and have lower fees while credit card and debit card payments tend to have slightly higher fees, but the money is received within one day.

The recipients don’t need to have an account with Xoom to pick up the money and you can choose to have them receive the money through direct bank deposit, cash pick up at a variety of locations, or even door-to-door delivery.

Immediately after signing up with Xoom, you can send up to $2,999 USD every 24 hour period with a cap of $6,000 each month. Don’t worry if you need to transfer more than that as you can raise your sending cap by supplying them with addition information for security purposes. Then you’ll be able to send up $25,000 in a 30 day period.

Xoom also has a bill pay services that allows you to pay utility bills in Mexico, the Dominican Republic, El Salvador, Guatemala, and Nicaragua for a $2.99 fee. All you have to do is select the type of bill, the recipient company, and enter the account number and your bill will be paid instantly.

 

Sending Money with Xoom

The process for sending money with Xoom is relatively simple and straight forward. The first step is to sign up for a free account using their online form which you can see below. You’ll need to fill in information like your name, e-mail address and create a password.

guide to sending money with xoom

The next step is to choose the country your are sending money to, enter the dollar amount, and lock in an exchange rate.

guide to sending money with xoom - 2

After that, you will choose how you want to pay and add the recipient’s information. If you are specifying a bank deposit, you need their bank name, account number, home address, the currency type in their bank account, their full name as it appears in their account, and a valid phone number. If you are specifying a cash pick up, you will need all the same information minus the bank account stuff.

Next you enter your payment information and the final step is to confirm your transaction details. All in all it’s a pretty simple and straightforward process that should take about 10 minutes. After your initial signup and transfer, all of your account information is stored so you can re-use the same details if you are making regular money transfers to the same person which will save you time in the future.

As soon as Xoom receives your funds, they initiate the transfer immediately. This is why credit and debit card payments go through quicker than bank payments. When choosing the bank payment method, Xoom has to wait anywhere from 1 to 4 days for your bank to process the transfer.

 

Picking Up Money Sent Through Xoom

As mentioned previously, you can specify from a number of different ways for you recipient to get the money. Here is what they will need on their end to pick up the money.

Bank Deposit

  • Proper ID
  • Their bank account information

Cash Pick up

  • Xoom tracking number (provided to you by Xoom when you complete the transaction)
  • One of the following ID combinations
    • Two forms of primary ID
    • Three forms of secondary ID
    • Two forms of secondary ID and the secret word (you can specify the secret word during when filling out the transaction details)
    • One form of primary ID and the secret word

Home Delivery

  • Xoom tracking number
  • One primary ID

 

You’re Done

So that’s the entire process in a nut shell. It may sound complicated on paper, but it’s quite easy when using their online forms. You are prompted for all of the information you need. During the transaction, you will also be able to see your exact exchange rate and how much your recipient will receive in their home currency.

If you are still unsure if Xoom is the best choice for your currency transfer needs, you can use the Send Money Cheaper Comparison Tool to find the right option for your particular transfer.