You've to cover your roommate rent. Your household overseas needs money.
You've student loans at a foreign university. Regardless of the reason,
odds are that sooner or later you will need to send money to someone.
Lucky for you personally, it's easier to complete than ever before. All
it requires is just a few clicks on a telephone or computer and your
money's on its way. But sending money online has
its downsides. If you're not careful, you could find yourself paying
significantly more than you anticipate, or the cash mightn't reach its
destination. Listed here are three mistakes to avoid.
1. Using a credit card
You generally have three payment options for online transfers: a bank
account, debit card and credit card. Which one you choose matters. Hint:
Don’t pick the credit card.
Person-to-person payment website like Venmo and Square Cash charge huge percentage of the total amout but AfriShopOnline Wire Transfer charge
just 0.1% of the transfer amount when you use a credit card. Transfers
using their services with a debit card or cash deposit are free.
This isn’t universal, though; providers like Western Union and MoneyGram
don’t charge extra when you use a credit card for online transfers
But AfriShopOnline Wire Transfer is surely your best choice particularly
when sending money to Nigeria and other countries.
However, your credit card issuer might charge you. If your issuer
considers the transaction to be a bank card cash advance, the fee is
twofold: You'll pay an cash advance fee, the fixed amount or a share of
the transaction amount. Then you'll pay interest on the transfer amount,
generally at a 2% to 5% higher rate than your card's regular rate.
2. Using a Current Account
When you fund a transfer with a bank account, choose your savings
account particularly in Nigeria instead of a current account. Some
payment apps like Paga and Quickteller let you link up a current
account, but it’s not the wisest choice.
Here’s why: Savings accounts have a limit of but less expensive or cost
nothing wen you initiate a transfer “convenient” withdrawals or
transfers per month, per federal regulations. This includes all
automatic bill payments, overdraft protection transfers and telephone,
online or mobile-initiated transfers from a savings account.
If you go over the limit, some banks charge an excessive-transfer fee on
current account, also called an excess activity or withdrawal fee, of
up to 10,000 Naira per every 1 million spent.
3. Getting the details wrong
This really is standard for any type of online transaction, but it's
especially very important to money transfers. Double-check all the facts
you type in when you confirm the transaction. Getting the amount wrong
or sending a huge selection of money to an account number 1 digit
faraway from your intended recipient's could be expensive errors.
Transfers, unlike many store purchases, don't have a simple refund
process. If a transfer has been received, you'll generally have to make
contact with the one who got your hard earned money and try to sort out a
get back transfer, if that's possible.
If the amount of money hasn't been received, you can still
cancel transfers that go outside the U.S. within 30 minutes. Some
companies, like TransferWise, ensure it is easy with a “cancel” button,
but it's not necessarily that convenient.
The technology to send money at home and abroad is at your fingertips,
but so are opportunities for fees and errors. Pay with a debit card or
checking account and make sure all the transfer details are correct so
everything goes as planned.
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