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Wiring Money

Sending money to family and friends in the mail is not safe, especially when you are sending money to another country. There are other ways to send money, but the most commonly used way is through a money transfer service.

Money transfer services offer you the ability to make cash-based electronic transfers from the United States to one of hundreds or thousands of locations in your home country. These services could be large wiring companies or smaller networks operating out of supermarkets, travel agencies or corner stores.

At the store, the agent will take your money, enter the amount you are sending into the system and provide you with a receipt. Depending upon the type of network that they use, they will be able to offer one of hundreds or even thousands of locations in the receiving country for your friends and relatives to pick up the money. These locations may be corner stores in small towns, travel agencies, phone centers and other small shops. Some services will even deliver the money directly to the recipient for an added fee.

Many agents have an exclusive relationship with one network of money transfer services (MoneyGram, Western Union, Vigo, etc.). The agent should tell you the exchange rates offered for each service as well as where your family can pick up the money.

Wiring money versus using a bank or credit union

You can now use many banks to send money whether or not you have an account with them and they will either give the cash directly to the person you are sending to or hold it in an account for them. Other banks are promoting the opportunity to open accounts and receive two ATM cards allowing you to make deposits for your family members here and have them withdraw from the account at any ATM location in the home country. The problem is that ATMs are still very rare in rural areas in most countries. So people living outside of urban centers will be less likely to choose this option.

More and more banks and credit unions are trying to plug into the networks of money services in the home countries. Some banks have worked to ensure that people who open accounts with them can also send money internationally at no charge.

Options for wiring money

There are several different options for wiring money internationally. Different options vary in price, convenience and safety.

  • Using agents: You can go to a money transfer agent in person and transfer money for relatives or friends to pick up in person. You can also put money on a card through an agent and the funds will be delivered to a linked card in the other country. Or you can use a combination of these methods such as: cash to cash, cash to card, card to cash or card to card.

  • Using banks: You can also go in person to a bank and find similar services. Here you can transfer money through a bank account, a card or with cash if you have an account at that bank. Family members can receive funds through these different options as well.

  • Online money transfer: You may also be able to transfer money online using a bank account or prepaid card. Recipients can receive funds in cash, through a card linked to a bank account, or directly in their bank account.

Wiring money versus mailing money

Even though wire services have become more and more widespread, a 2003 study showed that human carriers or mailing of cash still accounts for 17% of all money sent home by immigrant families from the US to Latin America. Due to fraud, loss and stolen checks, mailing or sending money with people can be very risky. Wiring money is still a safer way to send money home.