Methods to Pay Someone at Home or Overseas

This advice is given in good faith but Jabberwot does not accept any liability for its use.

Method	Postal Order
Description	A paper money order, purchased at a Post Office and sent by the purchaser.
Advantages	Low cost. Can be redeemed in local currency at a post office or bank. Many developing countries accept Postal Orders, but research.
Limitations	Must be sent physically e.g slow. If by post, recommend 'Airsure' service giving mail an electronic tag to point of destination and insurance of up to US $50 or equivalent. 'International Signed For' is a reasonable alternative. The USA does not operate a Postal Order service. Some countries do not issue and cash, so research your country's post office website.
Security	A postal order can be 'crossed' meaning only payable to the money receiver, who must have a bank account to redeem it. If it is not crossed, then the receiver will very likely need official photo ID (passport) to redeem it at a bank or post office.
Cost to money sender	Typically 6.5% commission on the highest value Postal Order worth UK Pounds 20 or US $35.
Cost to money receiver	Zero

Method	Pay Pal
Description	An on-line 'payment system'
Advantages	Very quick to transfer money. Charges are very low. Pay Pal now have a debit card for easy withdrawal. Wide list of countries including many in the western world. Research List.
Limitations	Internet access is critical. Signing up an account with Pay Pal requires administrative effort and a few days. Both sender and receiver need accounts. First a bank account linked to Visa is needed. Some countries are not included, so research list. Research List.
Security	Very secure.
Cost to money sender	Free
Cost to money receiver	Free in the USA, otherwise approximately 1% to 3.5% of the transaction, depending on the account type. It is free to withdraw funds for Pay Pal USA accounts but not for all Pay Pal accounts from other countries.

Method	Setcom
Description	An on-line 'stored value account'
Advantages	Very quick to transfer money. Charges are very low. Signing up an account with Setcom requires very little administrative effort. Possible to use mobile phone to make payments. Wide list of countries including many in the southern hemisphere. Research List
Limitations	Internet access is critical. Both sender and receiver need accounts. Some countries are not included, so research list. Research List
Security	Very secure.
Cost to money sender	Free
Cost to money receiver	4.9% plus a small local fee, depending on the senders country. To withdraw funds costs a small fee.

Method	Western Union
Description	At an Agents office a Money Transfer Control Number (MTCN) is given to the sender, who privately gives this to the receiver who goes to their local Agent. An on-line option is also available.
Advantages	Covers about 200 countries having about 200,000 Agents. Research website (link).
Limitations	A limited amount may be sent in a 30 day period. Quite expensive for small amounts. Check website.
Security	Very secure. You may track payments on-line. Two forms of ID are required depending upon the amount to be sent. Check locally.
Cost to money sender	Sending US$ 30 will cost about US $15 and sending US$ 300 will cost about US $ 30. Option for fee to be paid by sender or receiver.
Cost to money receiver	See above.

Method	Check/Cheque
Description	A paper money order, issued from a bank account, and sent by the purchaser.
Advantages	The sender simply needs to have the money in their account and the name of the receiver. Operates anywhere in the world where there is a viable banking system.
Limitations	Both sender and receiver need a bank account. Must be sent physically. If by post, recommend 'Airsure' giving the envelope an electronic tag to point of destination and insurance of up to US $50 or equivalent. 'International Signed For' is a reasonable alternative. Typically a foreign check/cheque takes 4 to 6 weeks to clear. It costs the recipient US $25 to US $35 to redeem.
Security	Very secure. Recommend cheque/check should be 'crossed' meaning only payable to the money receiver. If it is not crossed, then the receiver will very likely need official photo ID (passport) to redeem it at a bank.
Cost to money sender	Fees depend on bank
Cost to money receiver	Usually a fee of US $25 to US $35

Method	Bankers Draft
Description	A paper money order, purchased at a Bank by the sender who sends it to the receiver. Similar to a personal check/cheque but guaranteed by the bank.
Advantages	The sender simply needs to have the money in their account and the name of the receiver. Operates anywhere in the world where there is a viable banking system.
Limitations	Both sender and receiver need a bank account. Must be sent physically. If by post, recommend 'Airsure' giving the envelope an electronic tag to point of destination and insurance of up to US $50 or equivalent. 'International Signed For' is a reasonable alternative.
Security	Very secure. It is likely the receiver will be required to produce official photo ID (passport) to redeem it at a bank.
Cost to money sender	Depends on the bank. A flat fee of about US$ 18 is typical.
Cost to money receiver	Sometimes free, sometimes there are local bank charges.

Method	Electronic Transfer or "Wiring Money"
Description	An electronic money order, purchased at a Bank and sent by the Bank to an overseas Bank account.
Advantages	Operates anywhere in the world where there is a viable banking system.
Limitations	Both sender and receiver need a bank account. Accurate administration is vital. Information required about receiver Bank is: a) Account Name b) Account Number c) Bank Address d) SWIFT or BIC Code e) In Europe the Bank plus Bank Account's 'IBAN' number. Total trust is needed between sender and receiver as this information may on rare occasions, be fraudulently used by the sender.
Security	Very secure sent direct from one bank account to another.
Cost to money sender	The sender may choose to pay or have the receiver pay.
Cost to money receiver	The receiver may be charged about US $30 or equivalent for up to US $10,000.

Method	Cash in the Post
Description	Cash in the Post
Advantages	Very simple.
Limitations	If sent by post, recommend 'Airsure' giving the envelope a traceable electronic tag, to point of destination and insurance of up to US $50 or equivalent. 'International Signed For' is a reasonable alternative.
Security	As secure as the postal services in the countries concerned. For example billions of dollars of cash are sent each year from the USA to Mexico, by migrant workers to their families, with very little (if any) going missing.
Cost to money sender	Zero
Cost to money receiver	Zero


Notes:- a) SWIFT or BIC code: Bankers International Code – encoded bank address, needed for international wire transfer, it is obtainable from your personal bank. b) IBAN International Banking Account Number - only needed for wiring money to or within Europe, it is obtainable from your personal bank.