22 Oct 2022
There is so much change taking place in the world of international money transfers that it is enough to make your head spin. International payments are a vital component of the world economy, whether it be a manufacturer extending their supply chain, international trade, or a person sending money abroad. Many issues have surfaced due to this activity's continued growth that merit discussion.
International transactions are crucial for consumers, banks, and other financial institutions supporting them in today's global economy. However, given how crucial international money transfer systems are for financial inclusion and growth, why are there still so many issues with their effectiveness, and what can be done to solve them?
A few common international money transfer problems are discussed below, with some workable solutions that can significantly help resolve your concerns about transferring money back home from overseas.
International remittance presents a people challenge as their first difficulty. Customers from various countries have varying opinions on what makes for the best experience with an international money transfer transaction in today's multifaceted world.
What is more critical to someone in the UK might not be as critical to someone in Japan. Depending on the size of transactions or the person conducting a transaction, the significance of these qualities may also change.
Due to the complexity of today's international transactions, it is challenging to forecast settlement times. Similar to domestic payment environments, same-day payments are uncommon in cross-border transactions. Fortunately for ACE Money Transfer, it is evident that the customer's needs come first. You can get their services fast, affordably, and conveniently in whichever country you are.
As so many intermediaries are involved in moving money from one country to another, each charges a fee for their services, and a global money transfer is infamously considered expensive. International transactions always have higher costs, which are frequently not transparent. Before completing the transaction, payers want to know how much their fees will cost. Regulatory expenses also add up, and FX fees will be when converting one currency into another.
Due to the increase in foreign workers, the international money transfer market has become more crowded. Retail and consumer customers will always consider pricing a major factor when choosing a service provider. If the customers' preferred financial institutions cannot provide a competitive rate, they will look elsewhere. To address this problem, ACE Money Transfer established the most affordable method of international money transfers.
Compared to almost instant domestic payments, the processing time for an international online money transfer made through a traditional bank transfer typically ranges from two to five days. Again, this is due to the sheer number of parties engaged in a single transaction. For example, if a Ukrainian citizen wanted to send money to Sri Lanka, it might first need to pass through agents in Russia or Germany before moving on to India.
Cross-border payments frequently take longer than expected because of the complicated process that must be followed. An international money transfer process that is slow and susceptible to delays won't satisfy users in a world where everyone seeks the fastest, most convenient services. New payment service providers that offer an instant, less expensive alternative to outdated, expensive, and slow bank transfers are the options.
While many money transfer companies offer solutions by attempting to make a transfer in the shortest possible time, ACE offers the best solution to this issue because its transfer time is significantly lower than that of its rivals.
When making international purchases, consumers and banks naturally want to feel secure about the security of their money. There is no assurance that a bank will be able to recover the stolen funds if a hacker successfully steals money from a cross-border payment pathway. Such losses may be very pricey. International transfer systems frequently experience severe security breaches.
Every nation follows its laws, so the international payment system is vulnerable to hacking whenever funds enter a nation with lax security and access laws. Any consumer sending money abroad should be extremely concerned about cybersecurity. They'll be much less likely to do so with systems that lack the best security precautions and risk management practices, are not consistently regulated, and are not in place.
For many financial institutions, however, this poses a significant problem. When incidents like the one in Bangladesh occur, it can cause enormous reputational harm. Reimbursing lost funds, paying fines, and facing negative publicity are the last things banks need as they try to control costs and keep their customers.
Finding a money transfer service provider that conducts secure transactions and allows you to monitor the status of your transaction in progress is the solution. ACE offers its customers the option to track their transfers.
Lack of transparency is a common issue that consumers have when sending money abroad. A 2017 SWIFT survey found that 47% of people wanted better visibility into the costs and deductions involved, while 64% of corporations wanted real-time payment tracking capabilities. Customers who want to ensure they aren't paying extra fees should value this transparency highly.
All types of firms can benefit greatly from greater transparency. They can use the data to comprehend and correct errors that negatively impact their profitability and use these insights to offer their customers better services. They will be able to streamline their procedures, save time, and cut costs and resources, for instance, by understanding why some payments are declined or require further investigation.
Compared to traditional bank transfers, ACE Money Transfer provides an international payment solution that is more affordable, quicker, and secure. With ACE, banks and other financial institutions can send cross-border payments in as little as a few minutes for up to 80% less than the price of conventional SWIFT wire transfers.
With ACE's global network and user-friendly mobile app for international money transfers, which spans more than 100 countries, you and your clients can make international bank transfers as simple as those made domestically.