How-to: Transfer Money Internationally From Malaysia
In the past, international money transfers from Malaysia meant sending the money through tedious process of bank-to-bank transfer, money order or cashier’s cheque. And it was often limited to selected cities. Now, with the emergence of various non-bank institutions providing overseas remittances services, it has become simpler, quicker and more secure.
You may find the need to transfer money abroad on a one-time basis or periodically. Whatever your needs may be, there are various ways available to transfer money with low fee, especially if you have not done so previously.
You can now remit money to almost anywhere worldwide via various remittances providers in Malaysia such as MoneyGram, Western Union, PayPal or through bank’s Telegraphic Transfer. Today, you can easily send cash, bank-in into their personal account or even remit to their mobile phones.
MoneyGram probably provides one of the fastest international money transfer service in the world – with remittances completed in just 10 minutes. In case of any hiccups, the maximum transfer time is up to three business days.
This remittance provider covers approximately 350,000 agent locations in 200 countries. The process of remittances is further simplified with the fact that both the receiver and sender need not necessarily hold a bank account. You can transfer up to US$10,000 (RM41,685) via MoneyGram, at any one time.
Sending money via MoneyGram comprises these five simple steps:
|Step 1||Check the estimation of cost for the transfer
via MoneyGram’s online fee estimator.
|Step 2||Go to a MoneyGram agent. You can find one by using
MoneyGram’s agent locator.
|Step 3||Fill up the Money Transfer Form to be submitted to MoneyGram,
together with the supporting documents like copy of your passport,
driver’s license or MyKad. Submit the money you want to transfer
and the relevant fees required.
|Step 4||Collect the receipt and note the Reference Number.|
|Step 5||Inform the receiver on your transfer and provide them with
the Reference Number.
Thereafter, your receiver needs to go to a MoneyGram agent, fill up the Receive Form, and provide an identification document issued by the respective local government. Once all details are verified, the receiver can collect their money in cash.
You can include a message of up to 10 words and choose the currency that is sent and received.
You can also remit cash overseas using MoneyGram via your CIMBclicks or Maybank2u account.
2. Western Union
Perhaps the most well known overseas remittance service provider, Western Union has approximately 515,000 agent locations in 200 countries. They are also supported by over 100,000 ATMs and kiosks worldwide. Western Union also transacts in over 150 types of currencies.
With Western Union, you can transfer your money through three methods:
|In person||Start online and complete transaction in person||Online transfer|
|Conduct your transaction at any Western Union agent location.||Fill out the necessary information through the Western Union website, but go to an agent location to make the payment.||Conduct your transaction through the Western Union app or website.|
When sending money, you can choose how the recipient will receive the funds. In Malaysia, this can only be through direct transfer to a bank account or by picking up the cash in person at a Western Union branch. Other countries also offer transfers to mobile phone numbers as an alternative.
Western Union is supported by most banks in Malaysia, such as Public Bank, RHB, Bank Rakyat, UOB, Agrobank, Hong Leong Bank, Ambank, Bank Muamalat and Pos Malaysia. Therefore, you can still remit money overseas via Western Union using any one of these banks.
You can also keep track of your transactions by using their Track Money Transaction Progress on their website. Transactions can take between one and five business days depending on different banks and locations.
PayPal is more commonly used to pay for transactions when buying from a foreign vendor. This is most probably the simplest and safest way to remit money overseas. All you need is their email address or mobile number and your recipient must have a PayPal account to receive the payment. If they don’t have one, they will need to sign up for it – which is absolutely free.
The transaction through PayPal comprises of three simple steps:
|Step 1||Login to your PayPal account and enter the recipient’s
email address or mobile number.
|Step 2||Enter your transfer amount.|
|Step 3||Your recipient will be notified via a PayPal notification,
almost immediately. Using your PayPal account, you can keep
track of your transaction progress.
Your recipient can choose to contain the money in their PayPal
account or withdraw it by transferring it into their bank account,
credit card or request for a cheque from Paypal.
PayPal allows you to consolidate all your overseas (and local) payments under one account to help you manage your payments better. You can also link your credit or debit card to your PayPal account for your convenience.
If you are making a purchase with a vendor, your payment made via PayPal will not be charged a transaction fee, but your recipient (the vendor) will be charged a small fee for each sale made. All you may incur is a small currency conversion fee if you are buying from a foreign vendor.
However, non-retail transactions incur a service charge depending on the country of destination. This charge is deducted from the amount that you are sending, so it is important that you take that into account when calculating how much you’re sending.
Sending money through PayPal is one of the safest options as every transaction is protected by advanced encryption and 24-hour fraud monitoring.
Also, if the item or service you bought fails to arrive or doesn’t match the seller’s description, PayPal will reimburse you the full amount of the item purchased plus shipping costs. They deal in 26 different currencies.
4. Bank’s Telegraphic Transfer (TT)
Telegraphic Transfer (TT) is now often used interchangeably with wire transfer, bank transfer, or Society for Worldwide Interbank Financial Telecommunications (SWIFT) system transfer. It is basically doing an international money transfer through your bank’s own system.
You will typically be charged a small service fee depending on the amount that is being transferred. This amount varies depending on your bank, and some banks also charge a fee for receiving transfers.
You need a savings or current account, preferably with an online account access to make a TT. When sending money overseas, you can calculate the value of your currency conversion instantly. The amount will be directly debited from your account into your recipient’s account.
Telegraphic Transactions is secure via the SWIFT network and Transaction Authorisation Code (TAC). This being the case, you will need more information about your recipient than other transfers. However, this also means that your transfer request can be processed on the same day (as long as you make it between the hours of 9.30am and 4.30pm.)
In addition to needing your recipient’s full name and address, you will also need the address of their bank, International Banking Account Number (IBAN) account number, and bank’s SWIFT code. Additionally, there are restrictions on the amounts of funds that can be transferred depending on your residential status.
|Step 1||Login to your bank’s online account.|
|Step 2||Select International Telegraphic Transfer from the menu. Where it is located depends on your bank.|
|Step 3||Declare the amount that you want to transfer, your residential status, purpose of transfer, and relationship with the recipient.|
|Step 4||Provide the necessary information for the transfer to go though:
1) Recipient's name
2) Recipient’s address
3) Name of recipient’s bank
4) Address of recipient’s bank
5) Recipient’s bank SWIFT code
6) Recipient’s International Banking Account Number (IBAN)
5. Merchantrade eRemit
Merchantrade eRemit offers a similar money transfer to MoneyGram. It features a simple online transaction that allows users to send money to 15 countries. Unique to Merchantrade is that it also allows you to specifically transfer funds to company or business accounts.
Recipients can also pick up the transfer in the form of cash from your chosen bank branch or designated cash pick up centres.
Merchantrade offers an electronic know-your-customer (eKYC) for registration, allowing you to sign up for the service through their app. Alternatively, you can also opt for a marketing representative to turn up at your office to verify your identity in person (only available in the Klang Valley).
|Step 1||Download the Merchantrade eRemit app.|
|Step 2||Follow the instructions to sign up for the service. It may take up to 24 hours to verify your identity.|
|Step 3||Select your country and payment network.|
|Step 4||Enter the amount and review your rates.|
|Step 5||Fill out the recipient details.|
|Step 6||Select the purpose of the transfer and the source of the funds.|
|Step 7||Make your payment through Financial Process Exchange (FPX) or Merchantrade Money.|
Merchantrade eRemit also offers the option for your transfer to be conducted over the Western Union network. This gives you more options for how your money will be sent. However, for most purposes this will not affect your ability to send money to another country.
6. Pos Malaysia
In the old days you would use the postal service to send money overseas, or even just to other parts of the same country. While the world has moved on to more advanced methods for sending funds, you can always go back to the post office if you really want to do it the old-fashioned way.
Not every Pos Malaysia branch offers remittance services these days, and you will have to consult the official list of available offices. Due to this being a legacy service, there is no online or mobile app option.
To make use of the postal money remittance service:
|Step 1||Go to a post office that offers a money remittance service.|
|Step 2||Fill in the required forms and make the payment.|
|Step 3||Obtain the Money Transfer Control Number (MTCN) and send it to the recipient.|
|Step 4||The recipient must go to a participating post office in their home country and fill in the “Receive Money” form.|
|Step 5||The recipient must submit their completed form and provide an identification document (depending on the country) to receive the money.|
It should also be pointed out that post offices that allow money transfers are usually also participating Western Union branches. Therefore, you are free to choose your money transfer network.
Valyou is yet another digital money transfer service, much in the same vein as MoneyGram and Merchantrade. One benefit that Valyou advertises is the option to transfer money directly to the recipient’s e-wallet (provided both of you are using the Valyou Mobile Wallet). However, this only applies to certain countries like Bangladesh, Cambodia, Nepal, and Pakistan.
It also offers home delivery services in Vietnam. Yes, you can have the money you’re transferring directly delivered in the form of cash, which is useful if the recipient does not own a bank account.
There are three options for transferring funds overseas with Valyou:
- In person from a branch office
- Through online remittance
- Through the mobile wallet
Here’s how to transfer money using the online remittance option.
|Step 1||Create an account by downloading the Valyou eKYC app.|
|Step 2||Follow the instructions to sign up for the service. It may take up to 24 hours to verify your identity. You will have to link your bank account to the service in order to pay using FPX.|
|Step 3||Log in to your new account.|
|Step 4||Enter the destination country, amount, and review your rates.|
|Step 5||Fill out the recipient details.
|Step 6||Select the purpose of the transfer and the source of the funds.|
|Step 7||Make your payment through FPX.|
By choosing an overseas remittance provider that best handles your type of money transfer – be it for personal or business – you can be confident that your money will be transferred safely and that you are getting a reasonable deal. Choose wisely and you will be surprised at how much money you can save while remitting money internationally from Malaysia – quick, easy and safe!