How to pay tuition fees Abroad from India: All you need to know!!
Going abroad to study can be an exciting time and the start of a new chapter in life full of experiences, friends and learning. But whether you are going abroad, the process to pay for tuition can feel complicated and expensive. And tuition fees don’t even cover all the other cash and expenses that occur once you are there. But a good thing is that you do have multiple options for payment methods compared to the past.
“Remittance transfer” broadly refers to electronic transfers of funds sent by US consumers to recipients in foreign countries. Remittance transfers may be virtually any electronic payment vehicle, whether via forex cards, wire transfers with banks, and money transfer providers.
Let’s break down how each one of them works and where you could save money for your next payment abroad.
1. Forex Cards
Forex Cards are practical and smooth way to spend like a local overseas. With a swipe of the Visa or MasterCard, or the participating payment company, you can make payments locally and the corresponding money will be deducted from your account.
But Forex Cards for students are far from considered the cheapest way to go. They often come with annual fees, issuance fees and minimum balance and activity requirements. Let alone a hidden exchange rate fee. These additional fees can take a strong bite out of your wallet.
Plus, Forex Cards are not all created the same. For instance, some have limited currency options, so if you want to travel to a neighboring country, your Forex card may be out of luck.
And even if it does work in other countries, you may have to pay a cross currency fee for non-supported currencies. Forex cards also tend to have cash-withdrawal fees that are applied every time you are at an ATM.
In the end, while Forex Cards can feel simple and easy, they are usually tied to multiple additional fees.
2.Wire Transfers with Bank
One of the more traditional ways to send money abroad is through a bank wire transfer. Most banks in the world use the global SWIFT system that allows them to send money to other countries. Wire transfers with banks are usually best for large lump sums. Ideally, the wire transfer can be done through the online banking portal your bank offers, but some Indian banks will require you to go physically to a branch.
Using the SWIFT system, you will need to provide exact details of the bank it is being sent to, and the exact amount. And the system usually takes 3-5 business days, but could be longer depending on your exact bank.
As for fees, banks tend to charge a SWIFT fee and an outward remittance fee for money being sent abroad. In addition you can face a hidden exchange rate fee with the rate the bank gives you.
If the exchange rate does not match the one you see on Google or Reuters, you can bet that the bank has tucked away a fee in every rupee you convert.
The bottom line is that wire transfers from banks are an available option for specific or infrequent payments. But on the same token, they often aren’t the smoothest or fastest if you are looking for a way to send or pay money regularly.
3.Money Transfer Providers
Money transfer providers can be a more accessible and easier way to send money instead of banks. And some money transfer providers let you send cash too. But choosing the right money transfer provider is important. They vary across the spectrum where some will require you to physically come to a branch for a transfer while others use smart technology to send money online and globally in minutes. As for fees, most money transfer providers have a transfer or service fee they charge. Then depending on how they set up their exchange rate, they can give you the real exchange rate or sneak in a fee with a marked-up exchange rate.
They can be faster than a regular run-of-the-mill bank and provide deals or offers to make the transfers cheaper. But in most cases, you will have to keep a sharp eye on the currencies they provide, the delivery time, and ensure there aren’t extra fees on your transfers. Few Cross-Bordermoney transfer companiesare Western Union, UAE Exchange, MoneyGram etc.
4.Cheques and Money Orders
Another option is tosend moneyvia cheque or money order. Out of the two, money orders will clear faster and allow your family and loved ones to receive the money. Cheques may take longer for the funds to be available. Both are a great option if you want to avoid steep fees and don’t need the convenience of speedy delivery.
Because banks, credit unions, and financial services institutions often charge a percentage fee based on the amount of money sent, cheques and money orders may be the best option for single, large remittance transfers. Basically, the more you send, the more you spend. Conversely, money orders only require a flat fee, and cheques can often be sent for free, saving you money on larger transactions.
Digital payments made through a remittance transfer provider are a safer option. Sending large sums of money through the post poses a large risk. International mail takes longer and has more opportunities to get lost, delayed, or stolen.
Different players for different methods of remittances are Bookmyforex, Extravelmoney, Banks, Instarem, Western union, TransferWise etc.
Now you don’t have to keep on wondering,What is remittance? Or how you have to pay the tuition fees. Remittance is a great way to get money to family or friends abroad. If you need to send funds, check with your bank on the remittance options available. Make sure your payment method is safe and secure, and remember to check the cost and fees that will apply before making payment.