While sending a few dollars is incredibly easy in this day and age, it becomes a bit more difficult when you want to send large amounts of money.
It is also a bit more difficult when you are sending money to someone in another country. Depending on the amount you are sending, your transfer may be flagged for security checks, delaying the process, especially if the recipient isn’t your immediate family. You also have safety to take into consideration.
In this article, we’ll talk about the various methods you have for transferring large sums of money.
Certified checks and cashiers checks
“Sending a check” can refer either to certified or cashier's checks. Both are used to guarantee payment instead of cash, credit cards, or personal checks. It's tough to replace these checks; for a lost cashier's check, you'll need to obtain an indemnity bond from an insurance firm, which might be tough to get. You may have to wait up to 90 days for a new check depending on your bank.
There is one major distinction: with a cashier's check, the bank takes money from the buyer, issues the check, and guarantees payment at face value. The funds are pulled from a bank account, not a personal account, as with a certified check.
When should a certified check be used?
Certain sorts of transactions frequently necessitate the use of guaranteed money. A security deposit for a new apartment or the first month's rent are two examples.
A certified check may also be required when purchasing a used automobile or making a down payment on a home. A typical personal check may not be accepted in certain situations, which is understandable.
After all, the payee has no guarantee that a personal bank account will have enough funds to cover the cheque. Although there are certain benefits to using a certified check, it is not always beneficial to the payer.
Instead, it offers the payee with a higher level of security (the recipient). In some circumstances, the transaction cannot proceed without a certified check or other form of guaranteed funds, such as a cashier's check, money order, or wire transfer.
Because the funds are guaranteed, the safety characteristics of a certified check primarily benefit the payee rather than the payor. A certified check, on the other hand, can be a safer option to carrying large amounts of cash while paying for a transaction.
A certified check may, of course, be sent or delivered by courier, something you wouldn't want to do with cash.
Remittance services provide a viable method of moving money from one account to another, although fees and terms will apply. If a person has a large sum of money and has to send it overseas, he or she can use domestic walk-in money transfer facilities to send it to an international money transfer facility.
While Western Union is a popular international money transfer service, several financial technology companies have emerged to provide international money transfers in recent years. Among the most well-known names in the industry are Paypal, Wise, Payoneer, Remitly, and several others that service specific geographic locations.
Physical cash is received at one of these money transfer terminals. After the local currency has been converted to the currency of the destination country, the cash can be picked up at a participating money transfer facility. Money can be sent to a recipient's home or business address in a variety of nations.
As mentioned though, fees and sending limits may apply, depending on the service. If you’re transferring a large amount of money overseas, you can expect to pay a fee that scales with the amount you’re sending, as well as extra hidden fees on the currency conversion rate.
Prepaid debit cards
Some providers allow you to send money using a prepaid debit card. If this technique is used to transmit a substantial quantity of money, the sender can load cash funds onto a prepaid debit card, which the recipient may then use to withdraw the funds.
In some situations, the prepaid card can be used in the same way as a regular debit card to make transactions. There is, however, usually an activation charge or a monthly cost.