• Personal Checks
• Cashier's Checks
• Foreign Currency Bank Drafts
• Wire Transfers
• Credit Card
• Western Union and MoneyGram

There are multitudes of reasons that you may want to send money back home, like to help out a family member or send a birthday gift. But what are your money transferring options? It can be confusing for even the most seasoned world traveler, with exchange rates fluctuating and electronic options right and left. Here are some of the basics of Money Transfer Overseas.

Cashier's Checks
In most of the western countries, a cashier's check is safer than a personal check. When someone gives you a personal check, you cannot be completely sure that their account holds the funds to pay that check. A cashier's check is a safe check, in order to get one, you must go directly to the bank and hand them the amount of cash you want the check to be worth. The bank types up the check, writing in the receiver's name.

So another option is to send a cashier's check overseas, possibly by Fedex, UPS or another mail system that would allow you to trace it if the package was lost. But as with sending a personal check, a cashier's check would be in foriegn currency, and the same problems occur.

Foreign Currency Bank Drafts
A foreign currency bank draft is basically a cashier's check in a foreign currency. You send a draft by requesting to do so at any bank branch. You can either pay the money up front, like with a cashier's check, or the amount can be drafted directly out of your account. The bank will request the receiver's name and address. Drafts are mailed, so the amount of time that this takes depends on the mail system and country of destination.

For the receiver, a draft is quite simple. It's mailed to the receiver like any other check and can be deposited into his account. With appropriate identification, he also has the option to cash the draft at any bank. The receiver does not have to have a bank account to cash the draft, but he will need proper identification.

So if time and money is not an issue, a foreign currency bank draft is an good safe solution.

Wire Transfers
The fastest and safest way to send money overseas is by wire transfer. You can send a transfer at any bank branch, again by drafting your account or paying cash up front. In general, the receiver needs to have a bank account in the foreign country. You'll need to know the person's name, account number, bank name and where the bank is located.

In some circumstances, you would be able to send a transfer to someone who does not have a bank account. Different countries and banks have varying regulations on this. For the safest bet, if the person does not have a bank account, mail a draft to them directly, or consider Western Union.

Wire transfers are fast — depending on the country, it takes two to three days on average. Some smaller banks in countries like India, however, can hold transfer money for a few weeks, so be sure to ask about the timeframe when placing your transfer.

Credit Card
Get a Visa or Master card. Get an extra card for your relative/friend overseas. They can take cash advance and you can cover the charges. The cash advance provides favorable exchange rates and Visa is probably the most recognized card worldwide. The disadvantages are that there are limitations on daily withdrawals from ATM and you don't have control over withdrawal. Now the same services with better control are provided by iKobo ATM (Visa PLUS) required for withdrawal.

Western Union and MoneyGram
Western Union and MoneyGram are two companies that send international money transfers. Western Union services 170 countries; MoneyGram services fewer countries. You pay up front via cash or credit card, and the transfer is sent in the local foreign currency. Your options include sending the transfer at an actual storefront or, in Western Union's case, using their online service. As with other wire transfers, you'll need to know the receiver's name and location. The receiver can pick up the transfer at another Western Union or MoneyGram location with appropriate identification.

These companies are convenient because neither you nor the receiver needs to have a bank account, and Western Union's online service is easy to use. This route can, however, be more expensive than using a bank.