The Internet has brought a revolutionary transformation to human lives. Everything from browsing and exploring our needs to fulfilling our needs through online purchases has become a trend these days. Without the world of internet, we miss something in our day-to-day lives, because it has undoubtedly become an integral part of our lives. The same essentials flawlessly integrate with our activities when we talk about the money transfer. A simple process of handing over some specified amount of money to someone else beyond the boundaries has become so convenient and simplified just with the help of internet. Now, anyone in faraway countries can easily transfer instant money to their parents, loved ones, friends, business associates and anyone through the internet. This process of money transfer that takes place between two individuals or two businesses residing in different countries is known as remittance service.
Now, let’s get deeper into understanding the concept and process of money transfer.
Money Transfer Regulations
In this section, let us get into learning about the organization that regulates money transfer in the US and the regulatory policies that govern the process.
Post the financial crisis that took place in the year 2008, the Dodd-Frank introduced new guidelines and policies for electronic funds and increase protection of consumer money during transfer. The first and most significant aspect of the new set of instructions is the establishment of the Consumer Financial Protection Bureau (CFPB). This is a government agency that works to regulate all financial transactions Americans use in their everyday lives including credit cards, loans, and transfers. At the time of transfer in any form across and beyond the boundaries, the CFPB stands as a pillar of security and protection against fraudulent money transfer specialists with certain streamlined money transfer disclosures.
The new rules that have come into existence after the establishment of CFPB include two categories:
It states that before money transfer the money transfer specialist would provide the consumer with the following information:
- The rate of exchange
- Fees and taxes levied for transfers
- Fees associated with any intermediate institutions
- The amount of money to be transferred
- An explicit mention of foreign taxes and fees
Following the federation rules, the requirements after money transfer include:
- Provide a receipt for money transfer
- The actual date when the money will be available to the recipient
- Any cancellation process
- Any steps or initiatives taken in case of errors
- Where to submit complain application
Money Transfer Methods
There are many ways of transferring money from the US to India. Some of the essential categories include:
- ACH Transfer: An electronic transfer of funds, also known as Automated Clearing House Transfer, regulates inter-banking transfers when the money is transferred from any bank in the US to any supporting bank in India.
- Online Transfer: This is one of the easiest ways of money transfer through local banking services from any bank in the US.
- Wire Transfer: Wire transfer facility works through a money transfer agency like Xoom, Remit2India, World Remit, TransferWise, and Western Union. These agencies serve as a stable platform to connect the sender and the receiver while processing a money transfer transaction.
- PayPal: Using the service, the sender electronically transfers money from his account to the account of the receiver in India with a minimal fee charged for the transaction.
- Cashier Checks: This is an easy method of money transfer, but it takes some time to cash the check in India. The transaction is more economical when compared to other forms of money transfer.
Key Essentials for Money Transfer
With so many options to choose, it is imperative that you undergo thorough learning, understanding, and research of all the methods with their advantages and drawbacks to pick a perfect option of money transfer. Adding to the same, there are various money transfer agencies or financial institutions responsible for wire transfer of funds. You do thorough research before making your final decision.
Here are the key essentials that play an integral role in helping you make the right decision of money transfer:
- Make a precise estimate of how early you want the payment to be cleared. If it is a priority, you are compelled to pay higher fees of the transaction.
- Then the other most important factor is the exchange rate. Choose a service provider that offers you the best exchange rates.
- Now, the other important aspect is the fees. Every service provider has some fees and hidden charges associated with the transfer of funds to India. Choose the fee slab that suits you the best.
- Learn the concept, read the reviews, and then make the final decision based on your personal experience about any specific service or word of mouth recommendations.
In recent years, money transfer from the US to India has experienced a great leap. Hence, it is essential to know the ins and outs of money transfer so that there are no errors, no confusions, and no worries when it comes to transferring your hard-earned money.
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