Global Web Pay is one option you have if you are looking to send money overseas. The other alternatives including using your bank or building society, or an FX broker (foreign exchange.) Keep reading to help you make a decision on whether Global Web Pay is the right option for you.

Who are Global Web Pay?

GlobalWebPay transfers are available 24 hours a day and can be funded with debit cards or bank transfers. Local currency payouts start from as little as £1 per transaction. GlobalWebPay is registered and regulated in the UK.

Factors to consider with your money exchange

When you are sending money overseas, there are various factors you need to take into account, and these are the main ones:

  • The total value of money you are transferring overseas
  • The cost, including the exchange rate, fees and charges
  • The frequency of the payment, is it a one-off or will it be regular
  • The manner in which the recipient of the funds would like to receive them
  • The urgency of the payment – is it urgent or no hurry

We have compiled some steps you can take to get the best deal on your money transfer.

Step 1 – Understand your options

When transferring money overseas, there are three main options that you can choose from. These are:

  • using your bank or building society
  • using a foreign exchange (FX) brokers. Global Web Pay is an FX broker
  • using high street transfer firms. Western Union is one such example.

The choice you make will depend on your needs. If safety and security is your priority, using your bank or building society is the best option.

If you are planning to send large amounts of money, you will usually get the best rate by going through an FX broker.

Money transfer firms are often the quickest option, but potentially costly.

Step 2 – Working out the costs

It may seem daunting to try and work out all the different costs associated with a money transfer. When you choose Global Web Pay, you need to take the varied costs into consideration. Some people don’t consider that it’s not just the exchange rate they need to think about, it is all the other costs too.

The costs are generally made up of three parts:

  • Foreign exchange rates – this is usually the main consideration when you are transferring money overseas, and it tends to vary depending on the type of firm you use. You should always take advantage of a favourable exchange rate, as it may be completely different the following day.
  • Sending fees – you will be charged by any firm for transferring the money in the first place. The sending fees will vary between the different transfer firms.
  • Receiving fees – in some cases, you may also be required to pay a receiver fee, although you can pay it instead of the recipient, if you prefer.

You will generally get better exchange rates if you are sending larger sums of money. If you are sending over £3,000, you will get much better rates than sending online £300.

Start by asking your bank to send you a quote, and you can compare this using FX brokers sites, such as FX Compared.

Step 3 – Ask for confirmation

When you have decided on the option that suits your needs, you should confirm all the details with the transfer company and make sure they are able to deal with all your needs. For example, are they able to deal with the amount you want to transfer, and can they do it within the timeframe you desire.

Ask the transfer company to send you all the details in an email or by post.

Should something go wrong in the process, it is important that you can proof what you agreed with the transfer firm. For instance, if they send the money later than what you had agreed.

How do I ensure my money is safe when I do an overseas transfer with Global Web Pay?

When you keep your money in your UK savings account you can have peace of mind that you are protected through the Financial Services Compensation Scheme (FSCS), If the worst happens and the company goes under, you have peace of mind that your money won’t meet the same fate. However, if you choose a foreign exchange transfer firm, you will not have this level of protection.

As Global Web Pay are authorised by the Financial Conduct Authority, you do have some degree of safety, as they are required to adhere to specific rules regarding the safety of your money. This means you will have more chance of getting your funds back, if the firm goes bust than you would with a transfer firm without FCA authorisation.

Read our page on checking the authorisation of a firm and what to do if something goes wrong.

When you send large sums of money, it is important to ensure your money is well protected, and that is why you should always opt for an FCA authorised company.

Barakah Customer Reviews

It’s important to see how other customers have rated their experience with Aftab Currency. Take a look at their up-to-date reviews on Trustpilot.

Trustpilot review

Information correct as of 14/06/21 (Trustpilot)

The benefits and downsides of your bank or building society

You can trust that your bank or building society will be one of the safest ways to send the money overseas. You won’t need to worry about anything going wrong, as your money will always be safe.

These are some of the pros and cons of using your bank or building society:

Pros

  • Quick Set-Up – you already have a bank account, so that’s one thing checked off the list! You won’t need to set up another account, and you also have the additional help of your bank. They will talk you through the transfer process, if you are unsure of how to do it.
  • Convenient – there are banks and building societies everywhere, so it is extremely convenient for a money transfer. You can also do it quickly online if you prefer.
  • Safe and secure – your money is always safe. If you are sending large sums you really want to have this level of safety and security.

Cons

  • Exchange rates are not as good – the exchange rates are never as good with a bank as with an FX broker, as they are specialists, but you need to weight up all the costs, not just this one.
  • Slower process – using your bank is not ideal if you want to send the money urgently. The transfer process may take up to 6 business days. You will have the option of a 1-2 day express service, but that will be more costly.

Will you send money regularly?

In most cases, any banks you find on the high street will also have branches overseas. There are few that just have branches in the UK.

This means that if you are sending money overseas, to a country with a branch of your bank, you will usually benefit from lower charges than if they didn’t have a branch overseas.

If you are planning to make regular payments abroad, i.e. to send to family or pay bills on a second home, this can be hugely beneficial for the lower fees and charges.

You will probably be required to have an account in the branch you are sending the money to and the branch you are sending the money from.

What is required for a bank or building society transfer

There are some details you will need to for a transfer via your bank or building society. These include:

  • The International Bank Account Number (IBAN) and Bank Identifier Code (BIC) for the account of the recipient. If they are not sure where to find it, they should speak to their bank or look at their online account.
  • IBAN and BIC from the sender account. If you are sending from a UK bank to one of their branches overseas, they may not need this information.

Is online or high street money transfer firm a good idea?

Another option to consider is a money transfer firm, and you can find these on the high street, as well as in the Post Office. You may even find that there are online services provided.

Let’s delve into the pros and cons of using an online or high street money transfer firm.

Pros

  • Various services– there are several options for how the money will be received. You can send it directly to the recipient via their bank account, or they can get instant cash.
  • Quick and easy set up – the set up process is quick and easy. You won’t usually need to set up an account or provide identification in some cases.
  • Quick transfer– you can expect the transfer to be complete in just minutes. This is a stark contrast to the bank, where it can take several days.

Cons

  • Confusing fees– the fees are often difficult to understand. You can end up paying more for sending a small amount of money, and it may not be worth your while.
  • Exchange rates fluctuate – the exchange rates tend to change, even during the course of the day. If you find a good rate, snap it up before it changes.
  • Less safe – the Financial Services Compensation Scheme (FSCS) will not provide cover to these companies, so it is less safe than using your bank.

High street money transfer service

What you need to know:

  • There are money transfer services on the high street – in newsagents or the Post Office.
  • You will probably not need to open an account. It is usually a simple transaction of paying the money and associated fees.
  • The high street money transfer company will hand you a reference number when you have paid. This is for the recipient to collect the funds, so it is important that you keep this safe.

What you need to check:

  • Make sure know what the fees are going to be. You may be able to send the money quickly, but it could come at a price.
  • If you are choosing the ‘instant cash’ option, make sure you find out where the recipient will go to collect the funds. The recipient will need to be able to pick it up without any fuss. You might also have the option of sending the cash to the ‘wallet’ of the recipient, on their mobile phone.

What you need to know about an online money transfer service

Key facts:

  • Online transfers are best suited to non-urgent payments, as they may take a few days to complete.
  • It may be possible to make international money transfers through the online services, but you may be charged a small fee.
  • You would register your credit card or debt card on the firm’s website to complete the transaction. An email address and internet access will be required.

Considerations prior to sending money overseas:

  • Make sure you know exactly what the recipient requires to be able to pick up the funds. Will they need internet access, and an email address? Get all the necessary information before you proceed.
  • Protect your money by setting up a password, and especially one that will not be easy to guess! Don’t use your name, date of birth etc.

Using a foreign exchange broker

If you want to send a large amount of money overseas foreign exchange (FX) currency brokers will usually offer you the best deal.

These are some of the pros and cons of a foreign exchange broker:

Pros

  • Low fees – You may not be charged any fees from FX brokers or if you are charged fees, they will usually be lower.
  • Better exchange rate – FX brokers are specialists in money transfer, so they generally give the best exchange rate.
  • Quick process – you can expect the recipient to receive the money in the same day as the transfer.
  • Regular payments – there are many FX brokers that can help with regular payments.

Cons

  • You need to open an account – you need to open an account if you wish to use an FX broker and this might take a couple of days.
  • Not ideal for small payments – FX brokers may not be the best option if you intend to send small amounts of money
  • Less safety– The Financial Services Compensation Scheme (FSCS) will not protect FX brokers, so it is not as safe

The benefits of using price comparison websites

To get the best deal, it is important that you use a price comparison website as this will allow you to check al the different offers.

Most people stick to just one, as they think they will get every possible deal on the same price comparison website, but this is not the case. If you use just one, you could end up missing out on a great deal.

You should only ever take a deal that meets all your needs, including if it the firm has FCA authorisation and it fits your budget. You should also ensure that the recipient will be able to collect the money without any hassle, if you are doing a fast cash payment.

Don’t be fooled by the filters, they could be hiding some great deals. Make sure you are seeing all the results, and not just the filtered versions!

Are you being scammed?

You’d be hard pushed to find an industry that it’s prone to scammers, they seem to turn up everywhere! You need to be careful when you are dealing with transfer firms, as you could be scammed without know it.

We would say that you can trust that Global Web Pay is not a scammer, but you should always be careful when using a money transfer firm. Keep your wits about you at all times.

You can avoid being scammed by considering these:

  • Does the deal look like it offers to much than it could possibly deliver? it may just be too good to be true!
  • Are you being asked to click on random links? This is another sign that all may not be as legitimate as you would like
  • Are they asking for personal details? Do not give these out unless you are sure that it is a company you can trust.

You may need to send larger sums in the future

You shouldn’t just think about your needs right now, but also prepare for your future needs.

If you find a great exchange rate, you will be able to retain this for the future through a ‘forward contract.’ This allows you to lock the rate for any future money transfers.

They are particularly beneficial if you will be transferring a large sum in the future as you will want to get the best deal possible.

If you are planning to put down a deposit on a holiday home overseas, for instance, you will want to ensure you still get a good exchange rate. You don’t want to try and get the deal when the pound has got worse, or the euro has strengthened. With a ‘forward contract’, you can lock in a great rate.

If the worst happens with Global Web Pay

Things can happen, even when you don’t expect it, and this goes for money transfers too. This is why it is so important to hold onto any paperwork you have received. You never know when you might need to prove details of the agreement.

When you use a money transfer firm or an FX broker, you won’t have the security of knowing you are covered by the compensation scheme. This will only be the case if you go through your bank or building society instead.

Some money transfer firms are registered with the FCA, while others are authorised. It is much better for you if they are authorised, as they have a responsibility to ensure your money is held in a separate account from the company money.

You will be able to find out if Global Web Pay FCA is authorised by searching on the Financial Conduct Authority website.

If the recipient is collecting the money from a branch, make sure you do a postcode search before making your decision, as this will enable you to find a branch close by.

Other options for making payments overseas

If you are buying items overseas or making payments, you may just want to opt for using your credit card or debit card for these payments, as it is a convenient way to shop, and you can benefit from safety and security with these methods.

One way you should avoid is sending cheques, as they are easier to intercept and the payment can also take a long time to complete. It may also be more expensive that the other options

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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