Imagine that your friends or relatives are on a trip abroad, and they have gotten into a bad situation: a purse with all the money they had was stollen from them. They called you and asked for a loan. The only solution in this case is a money transfer, but what is it and how to make it? This article will tell you about all the nuances related to money transfers and, in particular, about the ways to transfer money to Vietnam.
What is is a money transfer?
A money transfer is a way of remittance of the funds from one individual to another performed without a direct transfer of money from hand to hand. There money transfer process always has three participants: the sender, the recipient and the intermediary — the one who delivers the money to the addressee. The intermediary usually charges a fee for performing a remittance.
Transferring money is a fast and secure payment method. The transfers can be carried out both within the country and abroad, and they can be made in any currency as well. The particular feature of bank transfers is the speed: money can reach the recipient withinfrom one minute to several working days in cash or by crediting to the account.
There’s a wide range of payment systems through which money transfer can be made. They differ in the method of transfer, the speed and, accordingly, the pricing for services. In recent years, card to card transfers (money transfers made using bank cards) have become increasingly widespread.
What are the types of money transfers?
Money transfers can be carried out within one state — this type of transfer of funds is considered internal. If the funds are sent abroad, this money transfer is considered external or cross-border. Accordingly, money transfers in the second and other cases of transfers abroad can be made in a foreign currency, or, after receiving, rubles (euros, dollars, etc.) are exchanged for local currency.
What are the main ways to transfer money?
For the moment, there are several ways to transfer money that have already proven themselves. You can perform money transfers using:
- Bank transfers. This transfer is made through the bank where you have an account opened. The amount of the commission for this transfer depends on the amount, currency and type of transfer.
- Post transfers. Money transfers by mail are one of the most common types of money transfers, because the process of transfering money by mail is easy and can be performed by anyone. So, if you want to transfer money by post, you need to have your passport, the recipient’s data and the money itself. All that remains is to fill out the postal transfer form.
- Electronical systems of money transfers. These kind of systems, specifically PayPal, are pretty common around the world. In order to perform money transfers, the systems issue virtual accounting units that have a certain ratio with real world currencies. Users of the system can transfer conventional units via the Internet from one electronic wallet to another at any time. In addition, all the users can always access the system and exchange the available electronic money for cash or non-cash money.
- International systems of money transfers. The most famous of these systems are, perhaps, Western Union and MoneyGram. Money transfer is carried out only between countries. These money transfers usually do not require opening an account.
How can I transfer money to Vietnam?
The question of how to transfer money to Vietnam from foreign is especially actual for businessmen, freelancers, real estate buyers and those who have friends or relatives in this country.
Vietnamese banks have restrictions on the transfer amount: one person can’t send more than 5000 USD per day. You will not be able to bypass conversions and commissions. But it is quite possible to make transfers quickly, legally and with minimal loss of funds.
There are several ways to transfer money to Vietnam. You can transfer funds to a Vietnamese card, send cash to a payment system or make a non-cash transfer.
Foreigners also find some more options for transferring money, but it is better to use safe and legal methods, such as:
- Card to card transfers. There are quite many payment services that allow you to transfer money to Vietnam from a card online (for example, Western Union, MoneyGram, Unistream). To do this, you need to have a Visa or a MasterCard, a mobile phone number for identification. You also need to know personal data of the recipient (according to his passport) and his bank details. Please note thay you can transfer money only to the recipient’s bank account, after that he can receive it at the branch or credit it to his card.
- Electtonic purses. Some services, such as PayPal or PaySend, work perfectly with Vietnam. You can transfer money using both the site of the service and the mobile applications. The transfers are perfirmed quickly and the comissions are relatively low.
- Cash transfers. If you don’t have a possibility to transfer money online, you can visit one of the bank branches, a partner office or a branch of the payment system and send cash through the cashier. For that you will need your passport, the money, and in some cases a bank account opened as well. You will have to provide bank details, passport data and the address of the recipient. It may take up to five days for funds to be credited.
- A non-cash bank transfer. A non-cash SWIFT transfer to Vietnam, means a transfer from account to account, can be sent from the bank where the sender has an account opened. The recipient must also have an account in Vietnam. Meanwhile, any transfer in the amount of more than 5000 USD must be accompanied by supporting documents. The recipient needs to find out in his bank whether he will be able to cash out the transfer. Money can be credited within up to two working days.
Which currency is the best for transferring money to Vietnam?
The national currency of Vietnam is a dong. Dollars are also accepted, but not in all the regions of the country. Currently, 1 dollar equals to 22990 dongs.
If money is transferred from EU countries, it is better to do it in euros. In Vietnam, you can open an account in euros. It’s quite an easy process: it is enough to have a personal presence in the bank, a passport, a valid visa and 15-20 dollars for opening an account.
If you aren‘t a resident of EU, it will be more profitable to make a money transfer to Vietnam in dollars. Before doing that, you need to open dollar accounts in both countries to avoid conversion.
What should I consider before transferring money abroad?
While transferring money abroad, you need to pay attention to two things: the commissions and the exchange rate. So, if you compare the commission for the transfer of 150 USD from the USA to Vietnam, you will be surprised that the commission for this transfer can vary from 0 to 57.50 dollars? Before sending money, it is necessary to make sure from who exactly (the sender, the recipient or both) will be charged with the comissions.
If you think that your expenses for this service end after you pay for a money transfer, then you are mistaken. In addition to the obvious costs such as the transfer fee, you will also be chardged with several hidden costs associated with the proposed exchange rate of currencies. So, before choosing a particular type of transfer, it is necessary not only to inquire about the amount of the commission, but also about the exchange rate. Admittedly, it is not always easy to do this, since some institutions may not provide you with this information.
Some other common problems that can be encountered while transferring money to Vietnam include restrictions on the maximum allowable transfer amount, taxation, the need to document the source of income, the inability to make a transfer to the recipient on the card.
About OnCredit
Now when it’s all clear about the money transfers, let’s talk about an opportunity to apply for a loan online (vay tiền online) in Vietnam. OnCredit is an online loan consulting agency aiming to give customers an opportunity to issue a quick borrowing. The main advantages of the service are:
- The speed. Thanks to our system, you can always issue a quick loan (vay tiền online nhanh): it takes just 10 minutes for us to process your request, and our bank partner will send the loan to your account as fast as possible.
- The accessibility. OnCredit allows you to apply for a quick loan online 24/7 (vay tiền online 24/24), you can do it anytime and anywhere.
- The consulting services. We will give you a specific advice to help you choose the most suitable loan.
- The accuracy. We will notify you about the exact time when you will need to pay off your loan after you sign the contract.
Visit the site OnCredit.vn or download our mobile application – and you will get an online loan consultation in few clicks!