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Online Money Transfer Services – Are They Better than MTOs?

Although IMTOs provide more affordable money transfer services to the customer, there is another side of the story. Central Bank of Nigeria (CBN) terminated the license of multiple IMTOs. Their…

Although IMTOs provide more affordable money transfer services to the customer, there is another side of the story. Central Bank of Nigeria (CBN) terminated the license of multiple IMTOs. Their biggest concern on papers was the illegitimate transfer of economy. At the same time, banks received tough competition from the International Money Transfer Operators.

But even today, in Africa’s biggest remittance receiving nation – Nigeria – banks are charging a very high transaction fee. Furthermore, banks take anywhere from 2 days to a week, and sometimes, even more. This is why Nigerian migrants are turning towards platforms like FAZRemit that facilitate online money transfer services to Nigeria.

In this blog, we will discuss how such online platforms are overshadowing the reign of IMTOs. We will enlist all the claims made by IMTO’s. While we do so, we will be critically arguing with their points.

Let’s Debunk Some of IMTOs’s Arguments

1. Deregulating IMTOs will give way to a completely unregulated economy

IMTOs have been accepting cash payment for a long time. This threatens security and has the potential of violating AML/CFT. Now that KYC is mandatory, it affects the instant registration service of the IMTOs. However, under the umbrella of IMTOs, financial transactions are unable to be tracked. Even if it is not true, this is used by financial regulators to undermine the advantages of IMTOs and question their business.

On the other hand, online money transfer services partner up with the banks. The unregulated economy, as claimed by the IMTOs, is a major concern for the Nigerian economy. But this is the reason why FAZRemit strongly recommends customers to avoid international cash transactions.

2. IMTOs have the best technical infrastructure

Yet IMTOs are charging a considerably high transaction fee. When compared to banks, apparently, it is very low. However, when it comes to online money transfer services, this fee is cut down by a considerable margin.

Read – FAZRemit’s Lowest Transaction Fee for Money Transfer Nigeria. But How Much?

Simply put, IMTOs take a longer time to complete KYC verification. Moreover, time and again, their system has proven inefficient to ensure that all their registered users are legitimate. This ends up in the organization committing mistakes and allowing fraudsters, money-launderers and terrorism-funding parties to do the transaction. Even if an IMTO’s intentions are right, they are paying more heed to convenience than security.

3. An international wire transfer cannot be cheap for users

Yes, overcoming this problem is what a unique service – online money transfer – does! Unlike all the banks, IMTOs and even other international money transfer service providers, FAZRemit’s processing fee never exceeds 2% of the total transaction amount. This is why FAZRemit claims to provide the cheapest money transfer to Nigeria from USA.

ReadFAZRemit’s Wire Transfer Fee – Rate List.

Why Are We Far From All-around Digital Remittance?

The world is moving towards digitization and at an explosive pace. Yet, around 100 million Nigerian adults are unbanked. The worse part is – this number is increasing at an alarming rate. There are multiple advantages of digital transactions but some limitations as well. And undoubtedly, now with poverty and more stringent international KYC laws, scalability will be a huge problem.

There is a lot of competition in the market. And this competition gets even fierce when financial transactions are involved. But with the emergence of revolutionary ideas and implementation, there is one party that always wins – You, the customer! But the question is – How many?

To put it in the most relatable words, we are uncertain of who will be sitting on the throne of international remittance. But among the characters that we know today, online money transfer services surely is the favourite. To experience fastest online money transfer to Nigeria from the USA, register on FAZRemit today!

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You Must Know These Points Before Sending Money to Nigeria from USA

Is this a scam? How much do you charge? Why is the Document Verification taking so long? Can I be sure that my funds will reach the correct recipient? Why…

Is this a scam?
How much do you charge?
Why is the Document Verification taking so long?
Can I be sure that my funds will reach the correct recipient?
Why is it taking this long to process the transaction?
When can I get a response to my queries?

Before sending money to Nigeria from USA, a majority of customers are skeptical about money transfer services. Moreover, this is worth it considering that there are hundreds of Ponzi schemes and platforms online. Awareness about the subject could mean the difference between making the right choice or getting scammed. Discovering new offers, benefits and services can get you the best deals and everyone would recommend it. However, scammers are also looking for such targets. This does not mean that you should drop the idea of exploring completely.

Which is the best alternative to transfer money to Nigeria online?

Instead of this, a better question would be – ‘Which is the best online money transfer service for you?’ because the answer to that depends on multiple factors. There are several platforms and IMTOs who would provide their service at a cheaper cost while others may have faster transaction processing time. Some may claim to have the best security protocol whereas others may claim convenience as their USP.

So, the question is – What do you want?


Let us discuss all the problems you may come across while searching for a reliable platform to transfer money to a Nigerian bank account from the United States of America.

Is the Operator Hiding Anything?

The credibility of online money transfer platforms has undoubtedly been compromised publicly because of the widespread active network of scammers seeking opportunities to lure in people. According to Washington State’s Attorney General, US citizens lose millions each year to wire transfer scams. So, examine the operator, its claims, cross-verify, and then avail the services with precaution.

Another prevalent method of making immoral profits in the money transfer industry is – Hidden Charges. In this case, companies or online platforms do not reveal a complete payment breakdown. Once a transaction is made, a significant amount gets deducted from the ill-informed customer.

Here’s something to ‘enlighten’ you about this topic…


While sending money to Nigeria from USA, or making an international transaction, exchange fee and transaction fee are always levied. So, make sure you are well aware of the total breakdown of the total transaction charges beforehand.
One of the recommended ways to examine a promising platform is to make a minimum transaction instead of directly going with the big numbers because of the offer you are getting. Just don’t get manipulated. Give the platform a try by taking a calculated risk. On the basis of your experience, judge whether you want to continue with it.

Is the Response Appropriate?

Almost every single money transfer platform claims ”fastest transaction”. Others would do it at the cheapest fee.
So, compare a few platforms, read about the experience of those who have availed the services. There is no point in sending money if it does not get to the right person at the right time, especially in emergency situations. Same can be said about paying absurdly high transaction costs. As per your personal preference, you need to strike a proper balance between both options.

Going a step forward, what matters more than this is the response time by the operator. Due to unforeseen technical problems, at times there could be delays in the process, however, it’s the responsibility of the service provider to address the query without any delay.


Good customer support is a major parameter to determine reliability. In case you put across your query and the service provider doesn’t respond or takes a lifetime to satisfy the customer, consider this a red flag.

How Does the Platform Ensures Security?

When it comes to financial services, security is a must. To ensure that the funds you transfer reach to the correct bank account(s) and that not a single step violates any AML/CFT regulations, a responsible money transfer service provider must have proper documentation protocol.


The money transfer operator must ask for KYC documents from you. Also, the company must verify details of the beneficiary or recipient’s bank account.
This system not only secures a user’s hard-earned money but also ensures that the platform has strict guidelines against unlawful exercises.

How Serious Are They About Accountability?

Having a personal dashboard certainly makes the money transfer experience extremely convenient. But at the same time, you must have a recorded transaction statement from the service provider as your personal copy.
There have been multiple instances in the remittance market that while wiring money to Nigeria from USA, the money gets deducted from the user’s account but does not reach its required destination. Therefore, it is important that you keep a copy of the transaction until the funds are completely processed.
You can use that receipt to put up a strong case for your refund. And if the platform does not, you can easily get your funds through the legal channel.

Therefore, it is important that you look for a service provider that respects and encourages customer empowerment.

FAZRemit, the one-stop online money transfer platform, ensures that anyone and everyone sending money from USA to Nigeria, Ghana or Kenya, gets the best overall experience.


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