5 Things to Know When Sending Money Abroad

The Financial Consumer Agency of Canada has released five tips to consider before you send money to countries around the world. Of course, most people use private firms to send money like Western Union, but the costs to do so can be extremely high.

"It can be frustrating for consumers to discover that the amount they send from Canada is not the same as the amount the recipient gets," explains FCAC Commissioner Ursula Menke. "This is why it is important to take the time to find out, to ask questions and to make sure you fully understand all of the costs a transfer of funds can involve."

Banks, credit unions and cooperative banks also offer money transfer services, but no matter what you use, the FCAC recommends the following:1. How Much Will the Transaction Costs You?
Ask what the total cost will be to avoid surprises when it comes to exchange fees and other costs. Fees vary greatly between financial institutions (sometimes from three to 25 percent or more) and may depend on where you are sending the money.

2. How Much Money Will the Person in the Other Country Actually Receive?
Often, it's not just about the costs to the sender, but the costs to the receiver as well. Be aware that transaction fees may be taken out of the amount you're sending, so you will have to compensate for that possibility and be clear on what they are.

3. Is There a Financial Institution that Operates in Canada and the Country You're Sending Money To?
If there is, find out if they have a cheaper money transfer alternative than the other possibilities available, such as e-mail money transfers.

4. Does the Money Lending Institution Have a Good Reputation?
Make sure that the lending institution you are using is reputable and known in the community. Before handing your money over, ask your family, friends and other members of your community about their experience. You can also consult the Canadian Council of Better Business Bureaus. [http://www.bbb.org/canada/]

5. You Won't Get it If You Don't Ask.
Find out if you get a reduction on fees for repeat business or a discount for sending cash over a certain amount. You won't know if you don't ask. Don't hesitate to shop around for the best price and service.