What Are The Risks Of International Money Transfers? 

Today, mobile banking applications are widely used for money transfers and electronic fund transfers (EFT). Transferring money to any account or making an EFT has become quite easy. The transactions and money transfers are carried out in a very secure manner. To be able to transfer money, the recipient’s name, surname, and IBAN information are required; no other information or documents are needed for the transactions, which are quickly processed. The fact that money transfers can be made at any time of the day is among the most important contributions. You can use the same bank or different banks to carry out money transfer transactions. The ease and speed with which money transfer transactions can be carried out have significantly met people’s needs. Many financial transactions have become easier to handle thanks to money transfer transactions. Although domestic money transfer transactions can be carried out in this way, international money transfers are not carried out in the same way.

When evaluated in terms of money transfers, it can be said that sending money abroad is more troublesome and difficult. At the same time, while domestic money transfers are credited to accounts instantly, the same does not apply to international transfers. International money transfers can be carried out as banking services, but many alternatives are also available. In addition to the applications of banks for sending money abroad, many platforms have important systems for sending money. With the many opportunities and applications available today, money transfer transactions can be easily carried out. Although it takes some time and effort, money transfer transactions can be carried out. However, in the recent past, transferring money abroad was a more difficult and troublesome task. Nowadays, with the development of mobile banking opportunities and the significant increase in security, this service has become easier to obtain.

How Do I Make International Money Transfers?

Different information and account numbers are required to make international money transfers. A different transfer method is used to make transfers abroad. This method, called Swift, allows for international money transfers between different banks. The Swift service is known as a messaging protocol that facilitates communication between banks. However, today it has become one of the most basic methods of transferring money. Nowadays, when transferring money abroad through banks, the Swift method is used. With this method, money transfer transactions can be carried out safely and quickly. However, although it is based on financial institutions, it can also carry some risks. Especially in cases where there is no secure network connection, money transfers with Swift can become risky.

When making international money transfers with Swift, different information is required. The Swift code of the bank to which the money transfer will be made abroad must be found. In addition, information is needed about which branch of the bank and which country the money will be sent to. Along with this information, you should also have the personal information and account number of the person you will be transferring money to. The IBAN number will also serve the same purpose as the account number. Having the IBAN information shows that you have the necessary information for money transfer transactions. However, when making a money transfer with Swift, it is necessary to ensure that the account to be sent to is in the currency of the transfer. Otherwise, the money transfer transaction will not be completed. In addition, it is necessary to determine which account the expenses resulting from the money transfer transaction will be deducted from. After these transactions are completed, the money transfer transactions will be completed. Money transfers made safely with the Swift method carry less risk than other transfer methods.

Alternative Methods For International Money Transfer

The Swift method can be successfully used for international money transfers. However, there are many alternative methods other than Swift that can be used for international money transfers. These alternative methods are generally carried out through partnerships among local and financial institutions. Moneygram and Western Union are among these alternative methods. These alternative methods have a higher commission rate compared to the Swift method. One of the main reasons for this is that alternative methods are sent directly to the person rather than to a bank account. As a result, costs can be a bit higher when using alternative methods. However, these methods have reliable infrastructure for international money transfers. The commission rates of these methods are generally over 10%, so they are not preferred as much. However, when international money transfers are made using these methods, the money reaches the person faster. When transferring money through Swift, a certain process must be completed for the money to be transferred to the account. To be able to make an international money transfer, you need to have the personal information of the person to whom the money will be sent. Once you fill in the information requested by the method you will use to transfer money, your transactions will be completed quickly.

Crypto Asset Transfers For International Money Transfers

One of the methods for making international money transfers is to transfer crypto assets. These transfers made within the blockchain are publicly visible to all crypto asset users online. This ensures that cryptographic assets are transferred to other users under the supervision and control of all users. Making transfer transactions with crypto currencies is almost as easy as sending an email. However, it is known that transferring money with crypto assets involves more risk compared to other methods. The fundamental risks that cryptocurrencies have can also apply to money transfer transactions. Therefore, although the use of crypto assets for international money transfers is common, I believe it carries greater risks. However, thanks to the technological infrastructure of crypto assets, many transactions have been successfully completed without problems. Additionally, as the crypto asset market and transactions are encrypted with the blockchain, there won’t be any problems as long as there is no cyberattack. However, we can say that cyber attacks are an important risk for international money transfers.

To transfer money using crypto assets, you first need to have a wallet address. Wallet addresses are generally similar to bank account numbers. You also need to have the crypto wallet addresses of the person you will transfer money to, along with your personal wallet address. As the numbers in crypto asset wallets can be quite long, this process can be easily handled using the QR code available in the applications. However, the currency type must be the same when transferring money with cryptocurrencies. Money cannot be transferred between different crypto wallets. Generally, low-cost transactions are executed using cryptographic assets for money transfers. The cost incurred for these transactions is generally referred to as a gas fee. However, money transfers with crypto assets involve less cost compared to other methods.

See you in the next post,

Anil UZUN