Is Online Remittance Reliable? Myths vs Facts?

Fiction can be pleasing only when crafted for entertainment purposes! But when they come to important financial matters, myths and misconceptions can lead to poor decisions and massive losses.

Remittance is one area that has been digitalised for the benefit of people who send money abroad. But it faces much confusion, many myths, and misinformation that often blur the line between fiction and actual facts. Many outdated perceptions around online remittance are just rooted in misunderstanding. In this blog, we will separate myth from reality and answer the most important question: Is online remittance truly reliable?

Understanding Online Remittance

Before moving to reliability, let’s first understand what is meant by online remittance in actuality.

Simply put, online remittance is the digital transfer of money from one person to another located overseas through digital platforms. Unlike traditional remittance, which requires visiting banks or money transfer agents, waiting in queues, filling out forms, and waiting for weeks for money to reach the recipient overseas, the online method of remittance can be instantly carried out through mobile devices with just a few clicks. Furthermore, these services eliminate multiple intermediaries from the payment chain and provide complete transparency to remitters.

Common Myths and the Truth: Exploring the Reliability Of Online Remittanc

Even with so many benefits to explore, scepticism about online money transfers persists in the remittance industry due to misinformation rather than evidence. Here are some of these myths explained below:

Myth: Online Remittance Is Not Safe

People do not believe online remittance is as safe and reliable as it lacks the in-person engagement that occurs at banking institutions. They are still concerned about exposing their personal and financial information to fraud, hacking, or data theft through online portals. However, none needs to be.

Leading online remittance service providers are licensed and regulated by financial authorities to actually keep all the safety issues at bay. Plus, most of the credible remittance platforms are configured with strong safety protocols like high-level encryption and two-factor authentication to protect your data. Not just this, sophisticated remittance software also features AI modules and fraud detection systems that track anomalous activity in real time.

Online remittance firms even provide complete transparency to their fee structure and transaction status so that remitters can be aware of what they are paying for and how their funds are being handled as they reach the recipient. They even provide 24/7 active support to help resolve any issues as quickly as possible in the event of confusion or mishap.

Banks don’t provide such a level of transparency in their remittance services at all, which keeps the remitters in confusion and anxiety until the money reaches the recipient

Myth: Online Remittance Platforms Are Complicated to Use

Well, this myth is common for every online service, as people assume something digital is complicated to understand, especially for those who are unfamiliar with mobile apps.

However, the actual fact is that these platforms are designed with a lot of thought, especially for users’ experience, by focusing on simplicity, transparency, and speed.

The usual process includes:

• Open an account (with ID verification).
• Enter recipient details
• Choose the transfer amount and delivery method
• Pay online (bank debit, card, or wallet)
• Track your transfer

Indeed, this can be a little tricky to understand for the first time, but most platforms provide step-by-step guidance for new users.

Myth: Transferring Funds Online Is Expensive

The majority of people believe that the ability to send money online from the comfort of their own home makes it costly. However, this is not correct.

Convenience isn’t always costly! Well, just because something makes the experience better doesn’t mean it’s more expensive!

Instead, online money transfer services are more affordable than banking remittance payments. As online remittance platforms cut the need to rely on multiple intermediary banks, they also cut their service charges. Results? Remitters need to pay a much lower fee for each international transaction.

Still, you need to be aware of these charges. Online remittances are inherently economical but some platforms are fraudulent and add hidden fees or unfair charges. Here are the common charges for remittance transactions.

• Transfer fees: These are upfront fees for money transfer
• Exchange rate margins: It is the difference between market exchange rates and what you receive

Make sure you compare both fees and exchange rates to understand the complete fees for the remittance service.

Myth: Online Money Transfers Take Too Long

Some remitters think that digital transfers are slower than bank wire transfers. And that isn’t accurate either.

Instead, banks take days and even weeks to process payments, as they operate only during fixed hours and do not process payments on weekends and holidays. Online remittance platforms, on the other hand, operate 24/7 to complete payments much faster.

Not just this, modern remittance software even delivers instant money transfers to any part of the world, which takes no more than a few seconds. The absence of multiple intermediaries is also the reason that the payment rails are much shorter and require fewer compliance checks, and hence, payments are quickly processed.

Final Verdict

So, it is quite clear that online remittance is reliable, and the beliefs around its lack of dependability are largely untrue. But this is only the case when online money transfers are made responsibly and through regulated platforms, instead of unfair or unauthorised channels.

We at Tech Remit build innovative remittance software that carries safe, quick, and easy online money transfers. Our platforms are fitted with advanced functionalities like real-time transaction tracking, multi-currency conversion, automated KYC/AML compliance, and more that elevate the standard experience of remittances. Contact us today to learn more about the remittance solutions we design!

Also Read : How Technology Is Empowering Money Transfer Operators (MTOs) ?