The USA, in particular, has a considerable Nigerian expatriate community and the need for safe, fast, and affordable remittance channels are vital. We are not confining money transfers to just an individual’s personal needs. Business transactions also take up a lot of the volume.
To send money from USA to Nigeria bank account, FAZRemit scores over IMTOs, bank to bank transfers. A closer look at all options will reveal the downsides. The three areas that need to go under the microscope are what any customer would desire from a service provider. These areas in deciding the ways to send money from USA to Nigeria, namely the aforementioned security, speed, and affordability.
The transfer should be safe and secure
FAZRemit has in place safeguards for secure online money transfer from USA to Nigeria. First, every customer requires to go through a registration process, the establishment of his bona fides is through documents such as Passport, ID, proof of address, communication details, etc. These undergo a verification process, and a KYC control mechanism is put in place. Furthermore, at the receiving end, the customer can add a beneficiary, whose verification is also done. To make the entire process ironclad, in the event of something going amiss or non-receipt of the money, FAZRemit guarantees a 100% refund.
They have taken the choices to send money from USA to Nigeria bank account to new heights, whilst fulfilling AML/CFT measures. No doubt, some customers view KYC compliance as a bother. But the reality is, it is a necessary evil purely to ensure safe and secure banking, much to one’s desire.
The transfer must be reasonably fast
An online money transfer from USA to Nigeria through a non-banking service, such as FAZRemit takes less than a minute (the name says it all). A bank wire service or IMTOs typically take a few days (maybe 3 to 5). Delays due to mistakes from the bank’s end. Or holidays fall in between.
Most importantly, the cost should be at a minimum. It should be affordable
To send money from USA to Nigeria bank account, the one single factor that should come under close scrutiny is the affordability.
For IMTOs, this is their bread and butter, and customers are unaware of the hidden costs. Here is an example:
A customer wants to remit 500 USD to Nigeria in Nairas(NGN).
Let us calculate the currency exchange fee applied by this Money Transfer Operator:
If the interbank exchange rate for 1 USD = 360 Naira
Money transfer operators’ average exchange rate margin is 2%. That makes the chargeable amount = 10 USD
Additionally, the transaction processing fee is 2% (if we take the best case scenario). This adds another 10 USD to the total chargeable amount.
So, the total amount you will be paying goes up to 20 USD when you are using MTOs.
The influencing factors for online money transfer from USA to Nigeria are the exchange rate offered and the processing fee. Banks inflate charges notoriously whereby the processing fee, may go up to 11%, Post Offices go to 7% and IMTOs anything between 2-9%.
FAZRemit charges very low transaction fees of 1.7% to 2% to send money from USA to Nigeria Bank Account for amounts <$500 to >$1000, for a minimum of $30 up to $10,000 per month. Beyond doubt, the cheapest rates anywhere.
Customers choose convenience over everything else when it comes to ways to send money from USA to Nigeria, and the customer is the boss. So, he must get what he is looking for.
How does FAZRemit ensure this? How do you enhance convenience without compromising on security? A few simple steps to facilitate the best online money transfer from USA to Nigeria, already in place at FAZRemit include:
- Monitoring and acting upon customer feedback,
- User-friendly website interface,
- Flexible payment options: credit card, debit card,
- Ease of document verification,
- Customer support through Live Chat and email
The pundits are of the simple opinion that commoditization of remittances will happen, and become free so that nobody makes money out of it. Microfinance and loans will become the face of revenue generation through customers. Remittances, such as online money transfer from USA to Nigeria, will be just another anchor product.