Article by Mozo
There was a time when paying an overseas bill required a lot of paperwork, paying exorbitant bank and foreign exchange fees and lots of your time. These days needing to make an international payment can be as simple as logging onto your smart phone and in a few clicks you’ve transferred money across the globe.
Whether you need to make a one off bill payment or a recurring bill payment each month, it’s important to know that you’ve got a range of international money transfer options at your disposal. Depending on the bill amount and currency, you have the choice of paying by credit card, PayPal, international money transfer or a standard bank wire transfer.
The most cost effective choice for bill payments over $200 is to use a international money transfer (IMT) service. Some of the most popular bills that people pay using an overseas money transfer service include:
While credit cards are easy and accepted by a large majority of overseas suppliers, international credit card payments generally attract a foreign exchange fee which is usually around 3.5% of the transaction amount. The exchange rate charged for the transaction will also be at the discretion of your bank at the time and day of the transfer.
If you are after a credit card to use for international bill payments, please visit our travel credit card section as we list cards that are most likely to have lower foreign exchange fees or check out our Experts Choice Travel Card Winners.
An international money transfer or IMT can be done via online banking with a bank or you can opt to use a foreign exchange specialist to transfer funds to pay an overseas bill. Most foreign exchange providers have an online platform allowing you to transfer funds in a range of currencies to a foreign bank account. Some international money transfer providers will have minimum transfer amounts so if you are making an overseas bill payment which is less than $200 you might be better off using your credit card or PayPal. But for larger bills, an IMT will be cheaper.
The good news is that here at Mozo, we’ve made comparing your international money transfer options a breeze with our handy IMT comparison tool. We compare all major providers from online specialists to the big 4 banks. Simply plug in your currency and transfer amounts and we’ll instantly crunch the numbers to show you how much you’ll get for your transfer.
While the exchange rate is likely to play a large role in your decision which provider to use, it shouldn’t be the only factor. There are four t’s of international money transfers to also take into account:
In order to make an overseas bill payment you’ll need to know the following:
1. Full name, address and account number for the person or business you want to send the money to
2. What currency and amount needed to be paid
3. Name, branch number and address or SWIFT BIC (Bank Identifier Code) of the receiver’s bank - IBAN (for payments to Europe and the UK)International money transfer guides for personal transfers