An international money transfer allows you to send money to a recipient overseas. Generally, a transfer involves you providing funds to a bank or an independent transfer provider, which then sends the money to your recipient in another country – in this case, Colombia. This can be done in person, over the phone, through a mobile app or online. You can use cash, a credit or debit card, or transfer funds from your bank account, which will then either be deposited into your recipient’s bank account or mobile wallet, or made available as cash for them to pick up at a location in their country.
If you want to send money from New Zealand to Colombia, you could use your bank. But while banks offer a convenient transfer solution, they don’t offer it cheaply. Banks are notorious for offering mediocre exchange rates and charging high fees on international transfers, so even a transfer of a small amount can end up costing a whole lot more than you might expect.
If you’re looking for a more affordable option, consider the services provided by a wide range of specialist online money transfer providers. These companies offer quick and affordable transactions to myriad destinations around the world. Their exchange rates and fees are much more reasonable than those charged by banks, which means that more money stays in your bank account (or your recipient’s).
While Carlos is living and working in New Zealand for a couple of years, he intermittently sends money home to his parents in Colombia. Up till now he has used his bank to send the international transfer, but he decides to compare two money transfer providers to see if they can offer a better deal.
The results of his comparison are shown below. As you can see, when he sends $1000, Carlos can save $10 in transfer fees and send an extra 11,730 COP using the second money transfer company.
How do I compare transfer companies when sending money to Colombia?
Exchange rates. Compare the exchange rates offered by a number of transfer companies to calculate just how affordable your transaction will be.
Transaction fees. It’s worth pointing out that a company with fantastic exchange rates may also charge high fees, so read up on all the fees and charges that will apply to your transfer. Some companies will also waive their fees for large transactions.
Method of placing a transfer. Check to see what options are available for placing transfers: online, over the phone, in person at a branch and/or using a smartphone app.
Transfer options. Can you lock in an ideal exchange rate now and transfer the money later, known as a forward contract? Does the company offer limit orders, which allows you to take advantage of changing market conditions by executing the money transfer when a certain exchange rate is met? Can you schedule recurring payments?
Minimum amounts. If you need to transfer a small amount of money, stay away from providers that impose a high minimum transfer limit.
Turnaround time. Compare transaction processing times between providers to see which one can get your funds to the destination the quickest, not to mention how much you’ll have to pay for an urgent transfer.
Pick-up options. Does the provider offer cash pick-up transfers or bank account deposits? Are there any other ways your beneficiary can access the money you send?
Customer service. If you ever have a question about a transfer or about the services a company offers, can you easily access the assistance you need from the customer support team?
The exchange rate determines how much one country’s currency is worth in another currency. When a country’s currency is strong, it will yield more money when exchanging it in a country with a weak currency. Since Colombia’s exchange rate is flexible, it can change from moment to moment. Factors that influence the exchange rate include interest rates, economic stability and inflation. Currency exchange rate for Colombia
It’s important that you take care when picking up cash. If you can, get a friend to accompany you and act as an extra deterrent to would-be thieves. While it’s also a good idea to only visit a cash pick-up agent in an area you know to be safe. Don’t display the cash you collect in public and deposit it in your bank account as soon as possible.
EFECTY Address: 998267 Carrera 79 N 42 Sur 18 Medellin, Antioquia Hours: 8:00 AM – 6:00 PM Phone: +57-1-2867957 EFECTY Address: 997025 Carrera 67 N 52 A Sur 03 Corregimiento San Antonio De Prado Medellin, Antioquia Hours: 8:00 AM – 57-3723311:00 PM Phone: +57-1-3723311
EFECTY Address: 999215 Calle 65 N 105 A 125 Int 109 Medellin, Antioquia Hours: 9:00 AM – 7:00 PM Phone: +57-1-3662359
Adrienne Fuller is the head of publishing at Finder US. With a decade of experience creating guides in finance and education, she aims to deliver the accurate and transparent information she wishes she had when she made some of life's important financial decisions. For the past 3 years she has been the publisher of money transfers, helping readers save when they send money all over the globe. She has a BA from Colorado College and loves to hike with her two Catahoula dogs around her home in San Diego.
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