Below, you’ll find a list of payment types offered by transfer services. For each, we have prepared a guide to help you understand what it is and how it works. We’ll explore why you should use a dedicated money transfer service, and how to select one with the features you need.
Spot contract
A spot contract consists of a single payment from one currency to another at the current available rate. If you need to send money right away, simply login to the service’s app or website and with a couple of clicks a spot payment can be arranged.
Recurring payment
A recurring payment is the easiest way to transfer money to the same recipient on a regular basis. A recurring payment allows any future payments to be direct debited automatically, providing a convenient solution to make better use of your time.
Market order
A market order allows you to set a target exchange rate that you would like to transact at in the near future. If and when your target rate is reached, the service will initiate the transfer of funds immediately. This is useful if your transfer is not urgent and you willing to wait for a better rate.
Forward contract
A currency forward contract is useful if you would like to lock in an exchange rate but aren’t quite ready to transfer. This feature allows you to confirm a specific rate for up to 12 months in the future, protecting you from unfavourable rate movements.
Options
Foreign currency options give you the right, but not the obligation, to purchase a particular currency at a predetermined exchange rate. It is one of the most useful methods of protecting a future transaction from adverse exchange rate movements.
Multi-currency account
A multi-currency account allows you to send and receive payments in various currency denominations. It is useful for individuals and small businesses who would like the flexibility of transacting in more than one country at a time. For many, it is a suitable alternative to opening a foreign bank account.
Cash pickup
A cash pickup payment allows you to transfer money to a person in another location, whereby they can pick up the payment in cash – typically from a physical branch. It is the easiest way to send money to family or friends who need quick and flexible access to funds.
Featured image by davidmarcu / CC0
