You’ve probably sent money abroad recently to take care of your loved ones or to complete an important project back home.
With technology now so advanced, the most popular methods for money transfers are bank wire transfers, PayPal, Western Union, MoneyGram and of course good old cash directly through friends and relatives.
Sending money abroad using a credit card is another option, though you may not have thought of it in the past.
However, life happens, and this method could come in handy, especially in an emergency.
There are many factors you should put into consideration before sending money abroad. You must think about the safety, speed, the fees and any hidden cost.
In this article, we’ll give you a full breakdown of everything you need to know, so when next you are using your credit card for money transfers, there are no questions.
How can I send money abroad using my credit card?
There are several ways to send money to that relative or friend abroad with your credit card. Here are all the four options:
How it works: Transfer funds from your credit card account into your checking account using your App or online banking
Do the international wire transfer at the bank or through your online banking. The money would be taken out of your checking account, but it originated from your credit card account.
Some banks may let you do the international money transfer directly using your credit card without having to first move it into your checking
Absolutely helpful when you are cash strapped or in an emergency and have no funds in your bank accounts.
The funds debited from a credit card are treated as a "Cash Advance" and the interest rate is charged from the day you send the money.
Not accepted everywhere.
A small commission is also applied based on the amount being sent
The exchange rate is outside your control additional commissions and charges may apply. This is usually in small print.
You can also send money abroad using a credit card through Western Union.
1.Log in or sign up and verify your free account. Click 'Send now' to start your transfer. 2.Enter the destination and choose the amount you'd like to send. 3.Select 'Bank account or payment option 4.Pay with your credit/debit card 5. Review and confirm, and your money is on the way.
Alternatively, you can walk into the nearest Western Union local office and do
It meets your need in an emergency
Money transfers using a credit card are also treated as a "Cash Advance" and the exorbitant interest rate is charged from the day you send the money.
Western Union money charges a flat fee of $10. Additional charges may apply to certain destinations
Additional third-party charges often apply. SMS and account over-limit and cash-out fees may also be charged
Other specialist money transfer companies like WorldRemit, Ria Money Transfers, Wise and some others will allow you to send money with your credit card.
The steps and requirements are like those of Western Union. The rates and conditions might vary slightly based on the respective service provider. Shop around to compare rates.
1.Set up or sign in to your PayPal account 2. Follow the prompts 3. Link your credit card to your 4. Authorize and verify the money
Recipient paid in local currency
PayPal chares 2.59% + $0.49 on every online transaction
You might be wondering if MoneyGram can be used to send money abroad by credit card. Surprisingly, it doesn’t. In Canada, you can only use a debit card
What else do you need to know on how to send money abroad?
If you want convenience and don't have enough cash in your account, sending money abroad using your credit card is a great option.
If you are transferring money from Canada, a better option besides those stated above is Remitbee. It was founded by Canadian immigrants for Canadians.
It offers competitive exchange rates and minimal fees, knowing that every dollar is important.
Sign up here