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A guide to remittance payments for immigrants to the USA

A guide to remittance payments for immigrants to the USA

Every year millions of people across the seek out new opportunities in a new country, with the United States of America being most people’s preferred immigration destination. For centuries, immigrants have made their way to America to build a new life and take advantage of the financial opportunities there. They have been sending remittance payments back home for centuries too.

Below is a short guide to remittance payments for immigrants to the USA, or anywhere else, that should help them send money back home after they begin their new life.

What Are Remittance Payments?
Remittance payments are money transfers that cross international borders. These are the payments you make to friends and family back home from America. These can be made for many different reasons. Most immigrants from any country will send money home after they get settled in the United States, or anywhere else in the world.

Many migrants go to another country in search of employment or a better rate of pay, so sending money home is very common. The Ria Money Transfer app makes these types of money transfers easy and lets you keep track of your remittance payments.

Being able to rely on an established foreign exchange and money transfer company gives immigrants and the recipients of their funds added peace of mind and security. These types of apps have become the preferred way to make remittance payments with most immigrants.

How Do Remittance Payments Work?
There are three entities involved in a remittance payment: the sender, the money transfer service provider, and the person receiving the funds. The currency will often have to be changed from US dollars, for example, into the native currency of the recipient. The remittance service provider will make this exchange at an agreed rate while transferring the funds from the sender to the recipient.

Some companies that can facilitate international money transfers and remittance payments have local agencies in hundreds of countries. This allows a recipient of funds to pick them up in person rather than having a bank account. This is a big advantage for some immigrants sending money back home.

How Much Does a Remittance Payment Cost?
When you make a remittance payment you will usually have two costs to take into consideration. The first is the fee your money transfer provider charges to make international payments. This will vary between each company and may vary between the payment options they offer. Collecting money from a local agent may be cheaper than transferring it to a bank account or credit card.

The rate of exchange will also be a cost to consider. When you are choosing how to process your remittance payment you may need to balance a provider’s fee against the exchange rate they offer. Low exchange rates may come with a higher fee, making a company that offers low fees with a competitive exchange rate a better option.

Remittance payments are a common part of the immigrant experience. Anyone who is planning on starting a new life in a new country should remember this guide to help them get the best value for money when sending some of the earnings back home to friends and family members.