By W.H.A.| SpeedyPay.info

I received the following question from Mehrshad Koleini.

Question: Dear Sir/ Madam. Hi. I would like to post few handicrafts nearly cost 1 to 1.5 thousand dollars every month to different shops in the US. However, I do not know how to get my money (Iran). Would you mind giving me some options, please?

Answer:

Iranian handcrafts cannot be legally imported or sold in the USA.

Mehrshad, I’m afraid that direct trade between the United States and Iran (in either direction) is a violation of U.S. sanctions.

Furthermore, sending U.S. currency to Iran would be a violation of sanctions. Only non-commercial family transfers are allowed, and even those must go through an intermediary third-country bank.

Bitta Mostofi, an Iranian-American activist and lawyer, says that current sanctions law bans the import of any goods of Iranian origin. That, she explains, includes “things as benign as rugs or artisan goods created in Iran, even things your family gives you.”

So there is no way you can legally send Iranian handcrafts to the USA for sale, or send U.S. currency to Iran.

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Money Transfer Service Xoom is Going Public

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By W.H.A.| SpeedyPay.info

I read today that Xoom, which is an international consumer-to-consumer money transfer service, is going public. The company filed with the Securities and Exchange Commission for an initial public offering that’s expected to raise $50 million. The company will trade on the NASDAQ under the symbol XOOM.

Xoom Corporation

The company has not yet disclosed what price they might offer at. I might buy a few shares when the IPO breaks, if the price is reasonable. I’ve used Xoom’s service several times in the past and have been happy with it.

I think there is tremendous potential for growth in the money-transfer market, which for years has been dominated by Western Union and MoneyGram, two companies that may be reliable but are expensive and slow.

Xoom allows users to send money to 30 different countries through their website (Xoom.com), Walmart’s website, or through mobile devices. The sender can fund the transfer with a debit card, credit card or bank account.

Xoom was founded in 2001 and is based in San Francisco, California. The company’s revenues have been growing quickly. Their annual sales in 2012 were $73 million.

See my previous review of Xoom’s money transfer service here:

Sending Money with Xoom

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1 vote, 3.00 avg. rating (68% score)

Comparisons of International Money Transfer Services

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Money transfer services have become an important part of modern society. Because of the number of online businesses growing and thriving, as well as individuals using the internet to shop from places around the world opposed to visiting brick and mortar stores, it has become essential to have a means of transferring money from one party to another.

Although an essential financial service, there is one big challenge in that not all companies are honest.

Money transfer

Companies that conduct fraudulent acts and people who scam hit virtually every market imaginable but obviously, anything that involves money becomes a primary target.

To avoid getting caught up in the madness, consumers have both the right and responsibility to research every aspect of money transfer services to find those deemed safe.

Top Global Transfer Companies

While most companies offer much the same services there are unique aspects of each. For that reason, a person would first need to determine what features are considered most important from a transfer company.

One thing in particular a person should learn is the countries for which services are offered. Because this is one of the many important features, we felt it would be beneficial to provide an overview of a few of the top-ranking money transfer services.

Personal FX

Specific to Moneysupermarket.com, which allows transfers of £5,000 and up for entry in prize drawings.
Monthly payments of at least £250.
No limit for the amount of bank transfer payments but a limit of £20,000 for debit cards.
If transferring £5,000 or less, fees could apply.
24×7 access to real time exchange rates.
Services are authorized and regulated by FSA

TransferWise

Maintains a 5 out of 5 rating for service among the top five money websites specific to money transfer services.
£100,000 limit on transfers completed online with the amount higher for phone transfers.
Services are 100% transparent with mid-market rates being offered minus only a minimal service fee.
Services are authorized and regulated by the FSA.
24×7 customer support via phone

HiFX

Specific to Moneysupermarket.com, which allows transfers of £5,000 and up for entry in prize drawings.
Minimum amount of transfers is £250.
Online transfers available below and above £20,000 with phone transfers can be completed for even higher amounts.
Real time exchange rates and no hidden fees o Money transfer services of £3,000 or less are charged a fee of £9.
Services are authorized and regulated by the FSA

WorldFirst

Specific to Moneysupermarket.com with money transfers of £10,000 and higher being used as entry into monthly prize drawings.
Only bank transfers are allowed, eliminating the need to deal with cash o Real time exchange rates and professional customer support.
Services are authorized and regulated by the FSA.

Lloyds TSB

Must be a current Lloyds account holder.
No limit on money transfers when completed at a local branch but a £5,000 limit on transfers completed via phone.
Fee of £17.50 for money transfers of £5,000 and over and £10 for transfers of less than £5,000 although any intermediary or receiving bank could tack on additional fees.
Currencies of all types are available.

PayPal

Currently 23 unique currencies are available.
No minimum on transfer amounts.
Sending money involves a 3.9% transfer fee when using a balance maintained with PayPal or a bank account, as well as a currency conversion fee, and possible other fees charged by intermediary or receiving banks.
Exchange rate would only be confirmed at the time of money being transferred

Key Considerations

No matter the reason for sending/receiving money to or from another country, it is important to learn everything possible about the company offering money transfer services. A good understanding of what different companies offer for money transfer services could have a significant impact on your user experience.

After all, the amount of fees charged, amount of time for a transaction to complete, and the level of support received could vary dramatically. Spending time looking at the companies mentioned as well as others considered safe would be a worthwhile investment long-term.

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1 vote, 4.00 avg. rating (78% score)

New Regulations for Money Transfer Services

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In recent years, the number of scams and frauds specific to money transfer services has increased. Advances in technology have made it possible to transfer money using a variety of devices, which is tremendously handy for many people. In addition, new money transfer services have cropped up around the world.

In both cases, opportunity for dishonesty has risen. However, regulators of transfer services have also begun to look at the practices and associated fees of these companies based on increasing complaints.

Regulation Changes

Western Union.

Transfer services will never go away because they are too valuable to both individuals and businesses. As a result, regulators have recognized that some of the existing rules needed to be modified and new rules implemented. Although some changes have already been executed, additional changes are expected to occur sometime in the near future.

One of the biggest changes is that rather than money transfer companies being regulated on a state level, the federal government will be taking over in certain areas. Then in February 2012, another change was enacted whereby customers must be given 30 minutes after the completion of a transaction to request a full refund.

Every day, millions of people depend on transfer services for sending but also receiving money for one reason or another. While the goal of reputable companies is to provide a much-needed service accompanied by affordable rates, dishonest companies have an entirely different agenda. We felt it important to provide information on some of the new regulations now being enforced, as well as other regulatory issues being addressed.

The Real Problem

The biggest issue with money transfer services is the lack of regulation for pricing structure. Without any control, the cost of services is something established by each company according to what they feel is right or the level of profit they want to make. To stay competitive, most companies maintain a similar price structure but there are also differences in the amount of fees charged. Because of this, a person might pay $10 to send money through one transfer services company and $5 through another.

Keep in mind that pricing has no cap, whether for actual fees or exchange rates. The variance in pricing has created serious concerns among consumer advocates who in turn have raised alarms to regulators.

Not surprisingly, some companies are fighting back, attempting to defend their fee structures by pointing out that they provide invaluable services to customers. But perhaps the real reason for pushing back against new regulations has more to do with the potential for losing high profits.

The Future of Transfer Services

According to experts, the business of money transfers will reach approximately $437 billion by the end of 2012. Compared to year end numbers of $387 billion recorded in 2009, it becomes clear this is a growing market that needs to be carefully scrutinized.

The primary goal of state and federal regulators is to make these companies more transparent. With this, known facts would be revealed, making it easier for consumers to choose a company with the best terms and lowest fees.

In addition, officials strongly believe transparency will encourage a higher level of competition but also allow people with low income the opportunity to find companies that offer the lowest rates.

Remember, it takes a significant amount of input from consumers, organizations, and even regulators, as well as time, for policy reform and the implementation of new regulations to take place. The good news is that things appear to be moving in the right direction specific to money transfer services.

Until all regulatory changes have been decided and executed, anyone interested in using services of this type should spend adequate time researching different companies and options. Although the fees will still be higher than what regulators want them to be at some point in the future, making comparisons would at least yield the lowest price available at that time.

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The Paypal and Western Union “Shipping Agent” Scam

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By W.H.A.| SpeedyPay.info

I received the following question today:

Question:

Hello. I’m selling an item but the buyer’s payment (made through Paypal) is on hold until I pay the shipper’s fee. Is there any way that a payment on hold from Paypal for a reason of payment to a shipping agent can be released?

Can Paypal and my local Western Union get together to complete the payment without the seller getting ahold of funds? I have a $2,850 payment on hold because buyer wanted me to pay shipping agent $900.00 and then I would get credited with the money after said transfer. I am unable to get funds so I want Paypal to send it to a Western Union and take care of it that way.. is that possible?

- Patrick

Answer:

Shipping agent fee?

Patrick, you are being scammed. There is in fact no $2,850 payment on hold, and the “shipping agent” is fake. If you make that payment to the shipping agent, the “buyer” will disappear, and you will receive nothing.

This is a fairly new type of scam that almost always involves Paypal and Western Union. A “buyer” contacts you, expressing interest in some expensive item you are selling – often something you’ve advertised on Craigslist. The catch is that the buyer has his own shipping agent who will pick up the item, and you must pay the shipper.

The buyer claims to have deposited the funds in an escrow account, or in your case Patrick, he claims to have paid through Paypal but the funds are “on hold” until the shipper’s fee is paid. The scammer might send you a fake Paypal notification email, indicating that funds have been received in your account, or explaining why the funds are on hold. You are asked to pay the shipping agent by Western Union.

In reality, the shipping agent’s fee itself is the scam. The scammer takes that money and splits, paying you nothing.

See Woody Leonhard’s investigation of this type of scam here:

New “419″ scam involves Paypal and Western Union

I’m glad you wrote to me before paying anything! Take care.

- W.H.A.

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Benefits and Risks of Money Transfer Services Like Western Union and Moneygram

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By Renee D. for SpeedyPay.info

Money transfer services have been around for many years but because of fraudulent acts in more recent times (for example people selling non-existent products online and receiving funds by Western Union), many people now question the integrity of companies that offer these services.

Even though some companies should be avoided for one reason or another, there are still a number of viable options for sending and receiving funds via the internet. In this article, we wanted to provide an overview of what money transfer services entail, as well as a few examples of key benefits and red flags that should be heeded.

What are Money Transfers?

Risks and benefits of money transfer services.

While most people have a good idea of what money transfers are, we felt a brief description was necessary. In simple terms, this type of service acts as a “middleman” between one party that sends money online and another party that receives it. Today, virtually everything is done using the internet, to include various types of financial transactions. Because of this, new opportunities have been created that are beneficial but on the other hand, there is potential for risk.

Because of advancements in technology, transfers can now be completed using different types of devices. For example, Western Union transfers initially required an individual to visit a local store or branch in order to complete the appropriate paperwork.

However, money can now be sent and received using a money transfer service via computer or cell phone. Although this makes things easier and more convenient, it also creates unique challenges.

Benefits of Transfer Services

There are actually many reasons that services of this kind are beneficial. Obviously, the benefits of sending and receiving money online would be unique to the individual or organization but overall, these services provide many of the same benefits to include those listed below.

Services are available to large corporations, small mom and pop shops, and individuals alike.
Financial transactions can be completed for a variety of reasons such as making a purchase from an overseas company, paying an employee who works in a remote location, and taking care of an emergency in a different geographic area.
Money transfers are completed much faster than payments made with a check and in fact, most transfers are instantaneous.
Exposure of personal financial information to include credit card numbers is eliminated, thereby preventing identity theft and financial loss.
Reputable money transfer services use discretion and secured servers, but also provide a guarantee that information will never be shared or sold.

Potential Risks of Money Transfers

As mentioned, along with benefits of money transfer services are several potential risks of which a person should be aware. Keep in mind that while risks exist for transfers that occur on a national level, the greatest risks involve international transfers. Below we listed some examples of things that could go wrong if a dishonest company were used to send or receive money online.

Loss Protection – Unfortunately, many transfer services do not provide any type of protection against loss that might occur. Even though actual cash is not being placed in an envelope and mailed, transferring money is really no different in most instances. Scams – Someone requesting money could actually be committing a fraudulent act. Most transactions involve honest parties but with money transfers being so common and easy to complete, new methods of scamming money out of hard- working and honest people have been devised.
Human Error – Someone working for a transfer services company could incorrectly enter a dollar amount, bank account number, sender/recipient information, or some other piece of vital information, thus creating disaster.
Poor Security – One of the most common mistakes people make when it comes to using money transfer services is not researching and confirming system security. Even with the most high-tech security measures in place, professional hackers can get hold of personal information although somewhat more difficult. However, if a service is handling financial transactions online but without having a robust security system in place, any funds being sent or received would be at risk, not to mention critical personal data about one or both parties.
Timing Issues – Most transfers are completed within minutes but a completed transaction could take much longer for systems that run on scheduled batches. A common reason money transfer services are used is to expedite a payment. Therefore, having a transaction that completes past an important deadline would create a serious problem. Now, the same problem could arise if the server on which the transfer company operates were to crash or go down for scheduled maintenance.
Unexpected Fees – In exchange for completing a money transfer, some type of fee is paid by the sender. The amount of fees can vary dramatically from one company to another and unfortunately, many are “hidden” in carefully worded text. As a result, the individual sending money to another party ends up being charged a significant amount of money.

Conclusion

There are valid reasons for using money transfer services but before using any company, some degree of research should be conducted to determine terms and rates. In addition, the type of security, as well as any policy specific to guarantee should be determined. While this might not eliminate risks altogether, it would certainly help diminish the chance of something going wrong.

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How to Avoid Being Scammed When Transferring Money

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By Joyce Morse for SpeedyPay.info

Wire transfer scams are nothing new, but they can be hard to recognize. You may know to be aware of the stranger that emails you asking for a large dollar amount that you can transfer to their bank account. But what other scams might catch the unsuspecting off guard?

How to Recognize a Scam

Money transfer scam

First of all, don’t assume that scams only happen from third world countries. The fact is that many scams happen in all countries, including the United States. Not all scams are conducted by individuals; many use a business name to make them seem more legitimate. Several warning signs will tip you to the possibility that you are being scammed. Here are some things to watch for:

They ask you for money. Scam artists know that if you wire money, there is no way for you to get it back. If you are making a purchase, always use a credit card or other form of payment that provides a way to trace it.
They ask for money to give money. If you have been “approved” for a loan and are asked for a payment for some kind of fee, this is a warning.
They ask for a large fee. You may be told that you won a prize such as a cruise but must a processing fee. While it is true that many things come with a fee, they will be reasonable – not several hundreds of dollars.
Someone contacts you to say a relative needs money for an emergency but cannot call you themselves. Scam artists know that emotions get involved in these situations and prevent people from making reasonable decisions, which is what they are counting on.

Tips to Follow When Sending Money

Here are some guidelines on sending money to keep you from being the victim of money transfer fraud.

Only send money to people you know. Since the money is gone forever when you send it and there is no way to get it back, don’t send a wire transfer to a stranger.
Never send money to pay for fees or other expenses on lottery winnings or other prizes.
Do not give out your bank account information or credit card numbers to people you don’t know.
Verify any situation where you are asked to send money to a relative for an emergency by someone you don’t know.
Never send money to someone that sent you a check until it clears. This can take weeks for some countries.
Research to find a phone number and address for the business. If you can’t find any information, be suspicious.
Above all, follow this rule: If it sounds too good to be true, it probably is.

Money transfers are a valuable service as a way to send money to people and businesses, but scam artists utilize this service to conduct their fraud. Protect yourself by being cautious with anyone who asks for money.

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Using Your Phone to Transfer Cash

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The BBC News reports that by the beginning of 2013, every bank customer in the U.K. may have the ability to transfer money between bank accounts using apps on their mobile phones!

In February 2012, Barclays Bank became the first bank to launch such an app for its customers.

Now the banking industry at large – as represented by the Payments Council – is building a database that will link all bank accounts to their customers’ mobile phone numbers.

This will allow every bank to connect their own systems to the database, and offer their own money transfer mobile apps to their own customers.

Mobile-to-mobile transfers may revolutionize the way people send money.

“There’s clearly a great demand for mobile payments, and our work will ensure that banks of all shapes and sizes can offer their own competitive service to their customers,” said Adrian Kamellard, chief executive of the Payments Council.

“Whether you want to pay a friend or your window cleaner, we are laying the foundation to enable mobile payments to become a mainstream option.”

How the System Will Work

Once the system is up and running, if you want to send money from your own bank account to someone else’s, here’s what you’ll have to do:

1. Register with your bank and activate their money-transfer app on your mobile phone (the recipient must also be registered with their own bank).

2. Log in to the app on your phone using a pin number.

3. Select the person you want to send money to – all you will need is their mobile number.

4. Choose the amount to be paid and add any note that you wish, such as “loan” or “gift”.

5. Enter a pin number to confirm the transfer.

6. The payment is then made, details will appear on the recipient’s app, and your account will show your reduced balance.

The money will be transferred instantly. So if you want to pay a vendor, or you get a call from a friend or relative needing a little financial assistance, you could move money to their account instantly.

“The point is not only that it is very secure but that it is fast as well,” Mr Kamellard says.

“It offers customers a different way of behaving.”

An Alternative to Credit Cards?

Money won’t be stored on your phone itself – the system doesn’t turn your phone into a mobile wallet – but the banking industry seems to believe that the coming changes will revolutionize personal payment habits.

Dave Birch, a payments expert at Consult Hyperion, says the biggest impact may not be on individuals but on small businesses such as shops.

“This could be adopted very quickly in the small business space – it may turn out to be more convenient and cheaper than accepting credit card payments,” he says.

Perhaps. But if I were a merchant, I wouldn’t want to have to use an app to log in to my bank account and confirm payment every time someone purchased a product. There are also security issues that will need to be addressed. For example, banks will have to be able to disable the app remotely if the phone is lost or stolen. But I suppose that’s not much different than having to cancel your credit cards when your wallet gets stolen.

I also wonder if this is bad news for online money transfer services like Paypal, and maybe debit card and credit card providers as well.

In any case, these are interesting changes that are coming, and it will be fascinating to see how they impact various financial spheres, including remittances, personal money transfers, and the retail industry.

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SpeedyPay.info

Money Transfer Blog: news and reviews of Western Union, MoneyGram, Xoom, Paypal, Ria and other money-sending services. Have a question about a money transfer service? Ask us.

Questions from Readers: Tracking a MoneyGram transfer, and Paypal fraud

How do I become a Moneygram agent?

Sending Money to Iran as Payment for Imported Goods?

Answer:

Money Transfer Service Xoom is Going Public

Comparisons of International Money Transfer Services

New Regulations for Money Transfer Services

The Paypal and Western Union “Shipping Agent” Scam

Question:

Answer:

Benefits and Risks of Money Transfer Services Like Western Union and Moneygram

How to Avoid Being Scammed When Transferring Money

Using Your Phone to Transfer Cash