Online Remittance Saves 3% in Fees Versus Traditional Money Transfer Methods

Published By iMoney | The Star
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You Save Money

TODAY, people are paying up to 3% more in fees every time they remit money out of Malaysia with traditional money transfer channels. 

Hence, parents sending RM1,000 to their child studying overseas will have to pay at least RM30. That’s RM360 in a year, if they send the same amount every month.

In Malaysia, total overseas remittances now stands at more than RM32 billion annually, with various non-bank service providers accounting for two-thirds of that. 

The cost of remittance using non-bank service provider stands at 1% to 3 %, while banks charge between 6% and 9%.

One way to achieve cheaper cost of remittance is to do your remittances electronically – it saves you money in fees as well as time and effort.

Here are three main reasons why electronic overseas remittance is the way to go:

1. Saves time: Time is money. In today’s fast-paced world, we expect services to be immediately reflected, and this includes making overseas remittance.

If you opt for traditional remittance, you’ll have to use up a lot of your time getting to the bank, looking for parking and generally going through all sorts of hassles before you even get to the counter.

You can get around this with services like eRemit by Merchantrade Asia which has the best rates lets you do it online or even by an app so you don’t even have to walk to your desktop.

With this service, you can remit funds and make payments across borders of 200 over countries in just 10 minutes or less. A traditional wired money transfer service may take up two (2) to three (3) business days.

2. Saves cost: What if we told you that you could save money when you choose the more convenient way of remittance? It’s way more convenient and it’s cheaper.

Online money transfer services allow individuals to quickly transfer money at a lower cost. For eRemit, the service fee is only as low as RM10.

Furthermore, the foreign exchange rate will be displayed to the user at the confirmation step, where the user can choose if the he/she wants to proceed with it or tweak their transaction amount to fit the exchange they intend to achieve, after currency conversion. Hence, you will be able to save money and avoid the hassle of figuring out the rates.

If the foreign exchange rate is not in your favour, you can also choose to transact another day when the exchange rate is better. At the same time, you will also know the exact amount that the beneficiary will receive in their account.

3. Convenient: The traffic and parking situation in the Klang Valley is less than ideal, hence, if there is a way where you can avoid driving or travelling to another location, we should definitely take it.

Remitting your funds online is hassle-free because you do not need to go to the bank to physically make your remittance. There is no need to stress yourself over parking, queuing up or filling up numerous forms. 

Using e-Remit, you can easily transfer money online using your computer or mobile app from wherever you are – at any given time.

To register and use the e-Remit service, you just need to be 18 years and above, possess a valid photo identification, with an active Malaysian Internet banking account.

As e-Remit captures and retains the particulars of your recipient, you don’t need to keep re-filling the recipient details all over again, if you make frequent transactions to the same person.

To make coordination with your recipient easier and more accurate, look for an online remittance service that allows you to check the history and status of your transactions. The less restrictions the service provider have the better off you’ll be.

Whether you are remitting funds for your family back home, or sending monthly allowance to your children studying abroad, or even settling your business transactions, factors such as convenience, cost and speed should be your main considerations when choosing the right service provider.TODAY, people are paying up to 3% more in fees every time they remit money out of Malaysia with traditional money transfer channels. 

Hence, parents sending RM1,000 to their child studying overseas will have to pay at least RM30. That’s RM360 in a year, if they send the same amount every month.

In Malaysia, total overseas remittances now stands at more than RM32 billion annually, with various non-bank service providers accounting for two-thirds of that. 

The cost of remittance using non-bank service provider stands at 1% to 3 %, while banks charge between 6% and 9%.

One way to achieve cheaper cost of remittance is to do your remittances electronically – it saves you money in fees as well as time and effort.

Here are three main reasons why electronic overseas remittance is the way to go:

1. Saves time: Time is money. In today’s fast-paced world, we expect services to be immediately reflected, and this includes making overseas remittance.

If you opt for traditional remittance, you’ll have to use up a lot of your time getting to the bank, looking for parking and generally going through all sorts of hassles before you even get to the counter.

You can get around this with services like eRemit by Merchantrade Asia which has the best rates lets you do it online or even by an app so you don’t even have to walk to your desktop.

With this service, you can remit funds and make payments across borders of 200 over countries in just 10 minutes or less. A traditional wired money transfer service may take up two (2) to three (3) business days.

2. Saves cost: What if we told you that you could save money when you choose the more convenient way of remittance? It’s way more convenient and it’s cheaper.

Online money transfer services allow individuals to quickly transfer money at a lower cost. For eRemit, the service fee is only as low as RM10.

Furthermore, the foreign exchange rate will be displayed to the user at the confirmation step, where the user can choose if the he/she wants to proceed with it or tweak their transaction amount to fit the exchange they intend to achieve, after currency conversion. Hence, you will be able to save money and avoid the hassle of figuring out the rates.

If the foreign exchange rate is not in your favour, you can also choose to transact another day when the exchange rate is better. At the same time, you will also know the exact amount that the beneficiary will receive in their account.

3. Convenient: The traffic and parking situation in the Klang Valley is less than ideal, hence, if there is a way where you can avoid driving or travelling to another location, we should definitely take it.

Remitting your funds online is hassle-free because you do not need to go to the bank to physically make your remittance. There is no need to stress yourself over parking, queuing up or filling up numerous forms. 

Using e-Remit, you can easily transfer money online using your computer or mobile app from wherever you are – at any given time.

To register and use the e-Remit service, you just need to be 18 years and above, possess a valid photo identification, with an active Malaysian Internet banking account.

As e-Remit captures and retains the particulars of your recipient, you don’t need to keep re-filling the recipient details all over again, if you make frequent transactions to the same person.

To make coordination with your recipient easier and more accurate, look for an online remittance service that allows you to check the history and status of your transactions. The less restrictions the service provider have the better off you’ll be.

Whether you are remitting funds for your family back home, or sending monthly allowance to your children studying abroad, or even settling your business transactions, factors such as convenience, cost and speed should be your main considerations when choosing the right service provider.