The first thing people do when before they move overseas is figure out a way to send money from India to the concerned country. With the digital evolution of payments and transfers, there are better ways to transfer funds. Let us understand how it works online:

Banks

The most reliable method to do international money transfers is through your regular Bank Account. They move funds to a local Indian account using the SWIFT code. These are interbank transfers that happen between the two banks. The speed depends on whether the two banks have an existing relationship or go through an intermediary bank. It takes longer when an intermediary bank gets involved.

If two banks have a direct relationship, then the sender bank credits the second Bank Account, and the second bank credits the recipient’s account. If an intermediary bank is involved, the amount gets credited to the intermediary’s Bank Account. The intermediary bank then credits the recipient’s account. Finally, the recipient account gets the money. This mode can be expensive since it includes several bank charges.

Money transfer agents

Transfer agents use a network spread globally for transferring money. This money gets deposited at the agent’s branch and withdrawn or delivered to the recipient in their country of residence.

Payment gateways

With financial technologies getting better, payment gateways and online service providers offer online money transfer directly to the recipient’s account. These services are becoming popular. Based on the country of transfer, many providers transfer funds for a small commission or fee. Some websites help find out the service that offers an affordable model.

You can then select the service to transfer money. Cost is not the only consideration when it comes to an international transfer. You also need to consider the time taken. Some transfers might take a few days while others a few hours.

How does it work online?

To send money from India to USA, find out which method to use. After deciding, it is important to open an account, whether it is a bank or an online service provider. Most of the providers offer discounts for new accounts that come with a fee. Then, add the amount for remittance. Later, add details of the recipient. This includes the Bank Account, address, email ID, and other details needed by the service.

Once entered, input your bank or Credit Card details for the money to get debited. After submitting information, the service provider processes the transfer and sends confirmation of the transfer initiation.