By Mohammed Waseem
How often have you transacted with someone in India and have had to pay online or have had to send money to your friends or relatives in India? This article deals with ways to send money from USA to India; the different services available and how they compare with others.
Out of the many services available in the market, a few of them stand out in terms of ease, accessibility, price and quality of service. The service provider you select would depend on what matters to you most: the exchange rate, the fee, tracking facility, speedy delivery, security, and so on. A few of these service providers are mentioned below with.
1. Remit2India (https://www.remit2india.com)
Remit2India is one of the commonly used services to send money to India. The reason could be better exchange rate provided by them. They charge a transfer fee of $3 for transfer amounts between $50 and $500 and charge $5 for amounts between $500 and $1000. All transfers for amounts above $1000 are not charged any fee. In addition to this, a service tax is charged at the receiving end which starts at 0.12% of the transaction amount. Remit2India takes longer time to deliver the money through AHC (Automated Clearing House), which is where they fall behind compared to others.
2. Xoom (https://www.xoom.com/india)
Xoom is among the most widely used transfer services, the reason could be fast delivery and transparency. The exchange rate they offer is comparatively lower, but they deliver the payment very fast: delivered within 4 business hours (according to India), into the recipient’s bank account. They charge a fee of $2.99 for transfers from a US bank account, while transfers using Credit/Debit cards are charged at $4.99. All transfers above $1000 are charged no fee.
3. Transfast (https://www.transfast.com/sendmoney-IND.aspx)
Transfast is quite an interesting service provider. They work on a guarantee that they provide the best exchange rate. However, they are aware that others MAY sometimes give a better rate than them, so they request the sender to email them the proof that their competitor offers a higher rate and they would give an even higher rate. I find this to be a good initiative to make new customers and retain existing customers; in other words, it is a good way to retain loyal customers. They charge a fee between $2.99 and $4.49. The transferred amount is delivered to the recipient in India on the same day (within 24 hours after sending); in some cases they claim that the money will be available in 15 minutes after sending the amount. All transfers above $1000 are free from any fee.
4. Western Union Money Transfer – WUMT (http://www.westernunion.com/india)
Western Union is among the most trusted and widely used international money transfer players. For ages, transactions have been carried out and controlled using the money transfer control number (MTCN). Usually, it takes seconds for the money to be available at the recipient’s location, as soon as the MTCN is generated, and the recipient is expected to collect the money from one of the WUMT agents. Now, Western Union has launched online transfer and as the introductory offer, they are charging no fee for Bank to Bank and Credit/Debit Card to Bank transfers; and $1 for transfers to WUMT agent locations. They also provide very good exchange rate, which gives the recipient a few rupees extra.
5. Money Gram (https://www.moneygram.com)
Money Gram is another trusted player in the market which is widely used all over the World. Indicatively, they offer the best rate, while the charges are $8 for transfers using Debit/Credit cards and $2.99 for transfers from bank accounts. The difference is that the former takes 15 minutes while the latter takes 3 business days for delivery. They do not have an option to transfer money directly into Indian bank accounts; the recipient has to visit a merchant location for collection, where 1 Indian Rupee is charged for the transaction.
There are other services in the market, but these stand out in comparison.
In summary, the following table should help you choose your service: