This post was sponsored by Simplii. The views and opinions expressed in this blog, however, are purely our own.
Whether you regularly send money to family members overseas, do business around the world, or support charities internationally, you’re quite aware of how much of a hassle it can be to send money internationally.
Not only do you have to deal with fees, exchange rates, and delays, but often you have to overcome security issues as well.
So what exactly is the best way to send money internationally? In this article we’ll compare 3 of the most popular options: bank transfer, 3rd party transfer, and more traditional paper methods.
3 methods of international money transfer
There are 3 main ways to send money internationally. We’ll go over the pros and cons of each, and take a look at a main example in each category.
International bank transfer: Simplii Global Money Transfer
One of the most obvious and go-to methods of sending money internationally is through your banking institution. This can be done through an online transfer or directly through the banks themselves, like the Simplii Global Money Transfer.
But not every bank system is built the same when it comes to sending money abroad. For example, Simplii Global Money Transfer has a few extra perks up its sleeve.
It allows you to send money to over 130 countries quickly and securely with zero transfer fees (in fact, it’s the only digital challenger bank to offer a zero-fee option). It also has high daily transfer limits of CA$50K.
But what’s extra special is you can send money using your Simplii Cash Back Credit Card – and actually earn cash back on your transfer.
Simplii is also the only player we’ve seen that offers cash back offers up to $300 dollars after sending your first GMT. Additionally, they offer rate discounts throughout the year for the holidays, festivals, etc.
That’s especially convenient if you were already considering sending money abroad.
- $0
- 75,000
Sending money to loved ones overseas should be a quick and easy process. A Simplii Global Money Transfer allows you to make money transfers of up to $75,000 per day (depending on the country), in local currency or in U.S. dollars. Transfers typically take 1 to 3 business days to process and have no initial transfer fees.
- No transfer fees
- Money transfer tracking
- Cash back and referral rewards
- Pick up your money at MoneyGram
- Get cash rewards by referring a friend
- Not available in Quebec
- Hidden fees
- Must have a Simplii Financial account or credit card
- Cash back rewards (when used with Simplii Cash Back Visa)
- Money transfer tracking
- Linked directly to your bank account, no 3rd party information sharing
- Get $50 when you refer a friend & they use your link
- Chance to win $5000
- $0
- Cash Pickup: Same day
- Bank account: 1 - 3 business days
- Visa debit/credit cards: Real time
- 75,000
With this exceptional example in mind, here are the pros and cons of sending money abroad through a bank, generally speaking.
Pros
- It’s easy: The process is pretty straightforward – it can be done online, or through an actual human teller in a bank. Simplii’s app allows you to send cash from the comfort of your home in seconds. Sending cash via the Simplii Cash Back Visa doesn’t count as a cash advance.
- It’s fast: In a typical bank, bank transfers can take place in just a couple of days. Simplii lets you send cash instantly.
Cons
- Fees: Typical bank transfer fees can be relatively high, and often hidden behind technical jargon. On the other hand, Simplii GMT doesn’t have international money transfer fees.
- Can be easy to make mistakes: If you aren’t careful when providing the recipient’s banking details, you could end up sending the money to the wrong person.
3rd party transfer: Western Union
For generations, Western Union has been the go-to way to send money internationally.
And with millions of international money transfers a day, and an extensive international network, it definitely deserves some attention.
Pros
- An extensive network: Western Union has branches in over 200 countries.
- A long track record: Western Union has been around for 170 years, and handles millions of transfers each day.
- Low tech requirements: Your recipient doesn’t need to set up an online account, or even a bank account to receive their cash. All they need to do to pick up their money is a government issued ID card, the tracking number from the sender, and head to a Western Union location near them.
Cons
- Expensive: It’s one of the costliest ways to send money. Not just in terms of fees, but also in terms of exchange rates.
- Slow: International transfers can take between one and five business days. For countries designated as “slow-to-pay,” (such as Brazil, Guatemala, Ghana, India, etc.) the transfer can take several weeks.
- Security: While the money transfer process itself via Western Union is reliable, fraud does happen regularly. Because all a person needs to pick up a Western Union transfer is an ID (easily falsifiable) and the tracking number, it’s not inconceivable to see cases of people going to pick up money at Western Union only to find out that the money has already been claimed.
Traditional money transfer options: Money order
Of course, there are more traditional ways of sending money internationally – like using a money order.
A money order is very similar to a cheque. But unlike a cheque, which can bounce if its issuer doesn’t have enough funds, money orders are a guaranteed form of payment.
Pros
- Secure: Cash can be stolen. And personal cheques reveal a lot of personal information you may not want a thief to have. Money orders, however, carry no personal banking information.
- Recoverable: If the money order goes missing, there are a number of systems in place to recover the money. Sure, it does cost an additional fee, and can take weeks to recover, but it’s a better alternative than losing the entire amount.
Cons
- Very, very slow: Since you’re sending money through snail mail, it can take months for the money to arrive at its destination.
- Low fund maximums: Money orders are typically capped at $1,000. A buyer may be forced to buy several just to meet a specific amount.
- Receiver may need to pay additional fees: Cashing in money orders in institutions other than its issuer typically incurs an additional fee.
What’s the best way to send money internationally?
While Western Union and money orders definitely have a place, especially in countries where Simplii isn’t available, in the vast majority of cases, sending money via Simplii GMT is your best option.
| Service | Transfer limits | Speed | # of countries | Example fee (Sending $1,000 to Pakistan) | Extra perks |
|---|---|---|---|---|---|
| Simplii Global Money Transfer | CA$50,000 | * 1 – 3 days * Instant if sent to a Visa Debit Card |
130+ | $0 | * Able to send payments through credit card and earn cash back * Easy for the recipient to receive * Safety and security remitting through financial institutions |
| Western Union | CA$999 online, CA$7,500 through an agent | * 1 – 5 days * Up to 3 weeks to “slow-to-pay” countries |
200+ | $25 | * Giant network * Long track record * Easy for the recipient to receive |
| Money Order | CA$1,000 | * Snail mail | 200+ | * $7.50 + postage * Recipient may need to pay additional fees |
* Safer than sending a personal cheque or cash via mail * Can be cashed in a huge variety of places |
Winner: Simplii Global Money Transfer
Though money orders and 3rd party services like Western Union are many people’s go-to international money transfer option, the truth is bank services like Simplii Global Money Transfer are changing the market.
It has some of the fastest transfer times, the lowest fees, and the highest limits.
Best of all, you can even earn cash back on your transfers if you use your Simplii Financial Cash Back Visa Card to make the transfer (which doesn’t count as a cash advance fee, if you were worried).
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