What is Cash Remittance?

You have most likely come across the term ‘cash remittance’, when sending money overseas. This is distinct from remittance more broadly, as cash remittance involves the recipient receiving their money in cash. So, instead of the money being sent to their bank account, they can pick it up in cash from a designated location. It’s […]

You have most likely come across the term ‘cash remittance’, when sending money overseas. This is distinct from remittance more broadly, as cash remittance involves the recipient receiving their money in cash. So, instead of the money being sent to their bank account, they can pick it up in cash from a designated location. It’s a straightforward way of sending money across borders, especially if the recipient doesn’t have a bank account or prefers to receive cash directly.

In this blog, we’ll explore the nuances between remittance and cash remittance, guiding you through the factors to consider when deciding between cash pickup or bank deposit for your transfers. Additionally, we’ll empower you with insights to secure the best deals when sending money abroad, including information on exchange rates, fees, and transfer times.

For example, with e-Pocket, you gain access to highly competitive exchange rates, ensuring best value for your transfer. Coupled with transparent fee structures and rapid transfer times, e-Pocket delivers a seamless and cost-effective solution for your international money transfers.

Remittance and Cash Remittance

In the financial world ‘remittance’ refers to sending money to a person in a different country. This can refer to any method for doing so.

On the other hand, a cash remittance is a specific kind of remittance. Originally, it simply meant to send physical money back home, when that was a more common way of moving money, but the term has evolved to refer specifically to money transfers in which the recipient picks up the money in cash.

People need cash remittances because they provide vital financial support to individuals and families, especially in regions with limited access to banking services. Migrant workers often rely on cash remittances to support their families back home, and cash pickup ensures recipients can access funds quickly, even during emergencies or natural disasters. Overall, cash remittances play a crucial role in improving living standards and promoting economic stability in communities worldwide.

How does a cash remittance payment work

Cash remittance facilitates the transfer of money from one individual to another, often across international borders, with the recipient collecting the funds in cash. Typically initiated at a remittance service provider, such as a bank or money transfer operator, the sender provides the desired amount of money and recipient details. Upon payment, the remittance provider sends an electronic notification to the recipient’s chosen pickup location, detailing the transfer information.

The recipient then presents identification and any required reference numbers at the pickup location to collect the cash. While the specific process may vary depending on the service provider and countries involved, cash remittance serves as a vital means of transferring funds, particularly for individuals without access to traditional banking services or in need of immediate access to funds.

Cash or bank deposit?

When considering how to send money through remittance services, one common dilemma is whether to opt for cash pickup or bank deposit. Both methods have their advantages and may be more suitable depending on individual preferences and circumstances.

Cash pickup offers the convenience of immediate access to funds for the recipient, often in local currency, without the need for a bank account. It’s ideal for recipients who may not have access to banking services or prefer the simplicity of receiving cash directly.

On the other hand, bank deposit provides a secure and traceable transfer method, with the funds deposited directly into the recipient’s bank account. This option may be preferable for those who prioritise security and wish to avoid carrying large sums of cash. Ultimately, the choice between cash pickup and bank deposit depends on factors such as recipient preferences, accessibility, and the level of security desired.

How to find the best deals

When looking for the best deals on your remittances, whether it’s cash or bank transfers, understanding the fees is key. Fees vary widely among different companies, so it’s important to compare. There’s no set rule on whether cash or bank deposits are cheaper.

With bank-to-bank transfers, you often face high fees, so it’s wise to choose companies that are transparent about their fees. Sometimes, hidden fees can surprise you during the process. Remember, banks usually charge higher fees than remittance companies.

To enhance your options for money transfers, consider services like instant card transfers. For transparency and competitive fees, consider utilising services offered by companies like e-Pocket for your money transfer needs.

Helpful tip: When sending cash remittances, remember to research whether there are receiving fees. This is when the recipient pays a fee to collect their money.

Conclusion

Cash remittance serves as a specialised method for sending money overseas, particularly suited to certain individuals, often the recipients. It’s essential to fully understand the implications of using various companies and methodologies when sending money internationally. Opting for a reliable and trustworthy service like e-Pocket can help you avoid exorbitant fees and ensure a smooth transaction process. Additionally, being aware of factors such as the mid-market exchange rate can further empower you to make informed decisions when transferring money abroad.