I Have a Credit Card, Can I send Money Abroad?

The financial sector is diverse and rich with opportunities. With such possibilities waiting to be exploited, the tech space is scrambling to come up with the ultimate product that will phase out the rest that is already in the game. However, these advancements do not always cover the entire spectrum as far as payments are concerned. As such, different products have started specializing in different aspects of payment. The greatest need, however, revolves around sending money from one person to another, both locally and abroad without limitation.

Let us deviate a bit and talk about cash. Our love for cash can be attributed to the independence it gives us once in our possession. We are in a position to control as well as track it usage because we have it. However, its benefits are as little as that. The physical nature of paper money makes it impossible for instant transfers whenever needs and other emergencies arise in our absence. To handle this, online money transfers came into existence. Companies such as Western Union understood the potential of person-to-person money transfers and dominated the market for quite a while. The market has, however, considerably grown over the years with other money transfer companies like TransferWise, Azimo, and much more getting into the business.

The question at hand, however, is there a possibility of sending money abroad using your credit card? The answer to this question is yes. Credit cards can be used to take care of quite a number of things. The most common transactions that made using them are the purchase of goods, both locally and over the internet.

💡TIP: Preloaded cards are the best when you intend to spend money online because they save your private data.

International money transfers also happen to be on the list of transactions that credit cards can render. The process, however, is handled differently from provider to provider.

This begs the question:

What metrics should be used when selecting a service provider to handle the international money transfer?

In response to this, it is important to take note of the minimum transfer speed guaranteed by the provider. Another factor that needs consideration is the minimum transfer amount and lastly the service charge. Providers charge different costs when transferring money. Comparing these costs from provider to provider is wise as it ensures you get the most out of your money.

How do you go about the transfer?

There are a number of methods that can be used to take care of sending money abroad using your credit card.

💡Tip: Don’t forget that in EU and other countries you can pay abroad with a single payment using SEPA

Your bank is the first avenue that you could use to perform the money transfer. Walking around with your credit card is an equivalent of having your bank account with you wherever you go. It is possible to directly transfer from your bank account internationally as long as the bank offers such a service. However, this may incur higher charges as the credit card provider translates the transfer of funds from the card as a cash advance and, therefore, attracts higher interest rates as well as a cash advance fee. Through your bank, you could either handle the transaction online, through your mobile phone or by physically visiting a branch.

Internet and mobile banking have redefined how view banks and they have also reduced the time taken to take care of most if not all bank services. However, as much as these services are convenient and fast, not all countries buy into them. This lack of support means that mobile payment systems such as Apple Pay and Amazon Pay are not accepted in such countries.

The use of online payments such as services like PayPal are the most widely used. All that is required is linking the credit card information to your PayPal account and you will be good to go.

Overview

Having access to all the accounts you may need to handle international money transfers is a desirable thing, right? Well, FSBT Tech is building a revolutionary platform that will do just that. Driven by the simple understanding that the future of banking has shifted from traditional banking systems, the company pushes for cooperation with each other as well as aligning with PSD2.

Read our next article “ Do I own money on my bank account?” on Tuesday!