The Best Ways To Transfer Money Overseas Between The UK And Australia

Best Ways To Transfer Money Overseas

Most people can benefit from the multiple advantages that modern technology has provided. With the constant development of new technologies and features, almost anyone can use technology to improve their personal and professional lives. Regardless of which part of the world you are from, you can rest well knowing that there are options that help ease certain transactions. 

An important example of modern technological innovation that we can use is the introduction of global payments. If you are currently living in Australia and would like to send some money over to a client in the United Kingdom, then you’ll need to search for platforms that can help you transfer money from Australia to the UK. These are systems that allow you to send and receive money anywhere around the world.

Here are the best ways for a United Kingdom to Australia overseas money transfer:

  1. Interbank transfers

Most banks provide various financial services which include transferring money locally or internationally. For people who are unsure of how to do so, most banks can help guide you through the payment process for better assistance. Keep in mind of the current exchange rate between countries as well as it can vary between banks.

Here is the process of doing interbank transfers:

  • Both parties need a bank account in order to transfer a specific amount of money from one bank to the other
  • Make sure that the sending bank is affiliated with the receiving bank. Ask about relevant and corresponding
  • In most institutions, you would require an International Bank Account Number or IBAN, or Bank Identifier Code or BIC for the person you are sending your money to
  • After confirming some of the details, it may take around 4-6 days for a standard money transfer plus additional fees depending on the amount of money you are transferring

While interbank transfers are safe, convenient, and easy-to-follow, they can also be quite costly to those who only plan to submit a small amount of cash. Additionally, their process can take even longer depending on the distance between two areas.

  1. Private financial companies

Other than banks, certain private financial companies also provide similar services that deals with a variety of currencies and exchange rates. Such examples include Western Union and MoneyGram which are relatively easy to use.

To send money, users will need to pay a certain amount which can be done with:

  • Credit cards
  • Debit cards
  • Electronic Bank transfers
  • Cash

To use, simply visit any remote location of MoneyGram or Western Union to start your process. Alternatively, you can also visit their sites online to get started. Remember to fill in the details in the send money form as accurately as possible. This may include details about the person including their Name, Address, and Contact Number. If you are doing this in person, an employee may provide you with a Money Transfer Control Number or MTCN, which you need to inform the recipient immediately so they can receive it on their end. 

These options usually work best if the receiver is in need of cash quickly and for emergency purposes. While they are faster and more convenient compared to interbank transfers, the cost of service usually depends on the different exchange rates between countries plus add-on service fees which can be a bit high for people on a tight budget. For Western Union, you can check for a price estimate using their online calculator. You can also check MoneyGram estimation for their services here.

  1. Online Payment Services

In a world of online banking, smartphones, and the internet, it’s only a matter of time until a variety of online payment services become one of the best options for people to choose from. Many of these services usually come in mobile apps or websites which can be used to send and receive money as well as be able to connect itself with online shopping carts when you’re shopping online.

With so many options available, it helps to compare your different options before deciding on a service. This means weighing in the pros and cons and deciding which platform works best for your situation. For services that can send money to Australia from the United Kingdom and vice-versa, some of the best options include:

  • CurrencyFair

This platform is considered one of the best options for people who are looking for cost-effective ways to send money. With a service coverage of over 60 countries, Currency Fair offers:

  • A user-friendly interface that allows you to conduct your transactions with ease;
  • A transfer amount of 0.35% of the fee plus 3 Euro as a fixture;
  • Offers rates as close to the current market rate and allows you to bid for preferred exchange rates to get a better price
  • Processes transfers between one to three days

As of now, CurrencyFair does not provide outbound services for United States citizens, although they can still use the service if they are living outside the USA.

  • OFX

OFX is one of the first and most popular money transfer services of the world. To send money, users have an option to do so either by phone or online. It is also ideal for individuals, online sellers, and businesses which means it is one of the most versatile options around.

Aside from competitive exchange rates, OFX also allows:

  • One to customize their regular payment schedules
  • Offers free services for transfer amounts exceeding a certain threshold
  • Offers local phone support for people in different countries; and 
  • Offers various transfer options which allows you to compare exchange rates

The downside to this is that users will only have to use the services in English and you can only transfer to bank accounts. As of right now, there are no cash-pick up locations.

  • TorFX Currency Transfer

Considered as the U.K’s International Money Transfer Provider for the years 2016, 2017, and 2018, TorFX has been consistently providing exceptional money transfer services for over 10 years due to their exceptional customer service and their years of using only the best exchange rates. This makes it a great payment transfer option for first-time users who may not be familiar with international money transfer just yet. Some of its features include:

  • Fast processing period of one to three days
  • A minimum transfer fee of 50 GBP or 100 Euros
  • No additional fees when making international currency payments
  • An online representative that helps you connect your fees abroad once you sign up

For added security, TorFX makes sure to stop or suspend various online payments if they are suspected to be used for unauthorized or malicious purposes.

  • TransferWise

Considered as one of the best alternatives to PayPal, TransferWise offers various financial services in over five continents. Aside from sending and receiving money, users will also get a chance to:

  • Pay utility bills
  • Make mortgage payments
  • Pay for tuition
  • Make payments for various international invoices

For processing speed, it usually takes around one to two days for an order to be processed. The minimum fee for transfer is around 1 GBP.

  • XE

XE is another great example of a global money transfer service. It currently trades in over 170 countries and also handles around 60 different kinds of currencies. What makes XE so great is that it does not charge any fees and does not have any monthly charges.

Here are steps on how to use XE:

  • Simply open an account online or over the phone which is free of charge.
  • Get a quote on how much money you’re transferring, what currency you wish for it to convert into, and the recipient of the amount
  • Send your payment online or over the phone. After which you will then be able to track your payments to see whether or not your payment was made. XE also offers 24/7 customer service so you can keep track of your payment service whenever, wherever.

How to Choose the Right Payment Option

With so many options to choose from, it can be quite overwhelming when deciding which form works best for you. To narrow your option, it helps to look at your situation very carefully while also examining different factors, such as lifestyle, convenience, and ease of depositing and withdrawal. To start, here are some tips that can help you narrow your choices:

1. List out your options

Options include banks, private financial companies, and global money transfer systems. Look for businesses that are ready available between you and your client despite the different countries you reside in. Remember to list the pros and cons of each option so you can decide on a service quickly.

Additionally, you can also research on reviews from other clients who used these services to gauge on the company’s reputation and quality of service. While most reviews are subjective, it is much safer to work with a reliable company that is known for its exceptional service than a company that has garnered a lot of problems even though their rates are cheaper.

2. Compare exchange rates

Each financial institution offer different exchange rates for transferring money overseas. This will give you an idea on which option is the more cost-effective one. If you are in tight budget, consider crossing out interbank transfers since they usually have the highest exchange rates available. This means that you may either deal with a private financial service company or an online payment service.

3. Determine the amount of money you will send

Large sums of money should be sent on platforms with tighter security and services that usually have a good reputation. While cost-effectiveness are important, certain investments for safety are needed so if you want to keep safe, be ready to pay some additional charges. 

If you are sending small amounts of cash to friends and family members then using Western Union or MoneyGram may be the best option for you. After all, not only are they well-known around the world but they are a great option for clients who may need money as soon as possible and have no time to go to the bank to withdraw their funds.

4. Decide on your service

Pick the one that best suits your current situation and start your transfer process. This can be done in-person, online, or even through the phone depending on the various options the institution provides. If you’re going to do it in person, make sure to get the necessary information first so you can fill out the send money form properly. This includes their name, contact number, amount of money you wish to send, and sometimes even their bank account number if necessary.

Remember to keep the receipt or tracking number the payment service gives to you afterwards and do not throw it away until your client receives their amount. This can be used as proof should ever there would be any problems with the payment service.

5. Keep track on your payment

After sending your money, stay updated on its current status. Encourage your client to contact you once they receive their money so you’ll be informed on whether or not there were any problems with the payment service along the way. With feedback from your client, you will know if the payment method that you chose was appropriate enough for the function needed.

Conclusion

A global payment system is an important feature that benefit businesses and consumers around the world. Without these systems, it can limit a person’s chances of purchasing certain items overseas as well as provide obstacles for people to receive money from certain people abroad. For companies, the lack of money transfer platforms can affect the growth of their business as a whole by limiting its options as well as its potential customers. 

Fortunately, technology has provided the world with more sophisticated solutions that not only transfer currencies effectively, but also in a safe and secure system that benefits both parties involved. Before deciding on a money transfer system, remember to compare the exchange rate, transfer fees, and other options that can help meet your specific business needs. It also helps to read up on reviews from other clients to gauge their experience as well as the reputation of a specific company.