Know The Types Of Payment Methods Used For Remittance

Indians living abroad has become the norm for pursuing higher education and conducting business. When you move overseas as a student, on a business, or as a migrant worker, you may need to send money back home for financial upkeep. Finding the right International Money Transfer service becomes essential if this is a standard requirement. You do this by analysing the costs, transfer time, exchange rates, suitability, etc.

Now, there are several types of payment methods. The service you routinely opt for is not necessarily the best for all transactions. Specific mediums are best suited for payments. You must figure out this aspect to choose the correct mode to send money overseas. This helps you save costs and find an apt solution for your transfer needs. Let us understand the types of Remittance and payment modes for the same.

Types of Remittances

1. Inward: It refers to the funds you receive in your Bank Account domestically or internationally. For instance, if you get funds from a relative living abroad in your local account in India, it is called Inward International Remittance. This is the most common type of transfer as Indians support their family in India by making international transfers.
2. Outward: It is an outward transfer when you send money abroad from your local Bank Account. For example, parents in India pay for their child's higher education overseas by using the International Fund Transfer service.

You have the choice of the following payment methods to carry out Inward and Outward international transfers:

Wire transfer

This is one of the most favoured methods to send money from India to the USA. It also works well with all kinds of international transfers. It is the relatively latest mode that comes with lower fees. Almost all financial institutions, including banks and authorised money exchanges, offer this transfer service. It takes three to five business days to send funds through this medium. You may track the same through the International Money Transfer app.

Bank drafts

Cashier cheques and bank drafts are available at various banks across the country. You can physically purchase the drafts or cheques in the recipient country's currency. This is another cheaper method to send money overseas. However, it takes the longest to transfer funds through this medium. On the brighter side, the drafts are traceable to check if they reach the destination.

Online Money Transfer

If you are looking for a hassle-free and straightforward method, Foreign Remittance is the apt choice. Most Indians use it to make international transfers. The process requires you to enter the recipient's account details, destination information, contact number, etc. Additionally, it uses a Society for Worldwide Interbank Financial Telecommunication code. This is used to recognise the bank branch in the destination country.