Have you ever wondered how money transfers around the globe works? Do they send the money to another person in a whole new country without reporting to anyone? No! There are specific rules that they have to follow and provide the information to protect several things.
The central organization behind all the information is EFTA, known as Electronic Funds Transfer Act that requires all the necessary information from the service providers. They keep all the things in check to know that the service provider is not overcharging anybody and there are no scams going on. But let’s have a deep look at what EFTA checks and how it can protect you and your money!
Requirements of EFFA to protect our money
Let’s check out what federal law or EFTA checks to protect our money from being scammed!
- The exchange rate
The first thing that you check while sending money abroad is the exchange rate offered by the money transfer service. It is very usual for the money transfer services to offer low exchange rate than the actual rate you can find on Google or various sites, but it is pretty standard as market rates are different. To get the best exchange rates, you can opt for transferwise, where you can get many other services too. But if a money transfer service offers a drastically low exchange rate, they can get a penalty from the EFTA or Federal government. This is how EFTA protects us from getting a lower amount than the actual amount.
You cannot expect a business to run without taking fees from its consumers, right? The same scenario goes with the money sending services, and they implement a specific amount of fees on every transaction. This fee is set after an agreement with the EFTA, and any business that breaks the agreement with them has to face the consequences. That is why it is unquestionably better to find the best money transfer services by checking reviews on Suomiarvostelut so that you won’t have to pay a higher amount of taxes. Just make sure that service is trusted and has been offering money-sending service for long enough.
We all pay taxes in order to live in a country peacefully and have a good life with all the essentials needed to live in a country. In the same manner, we also have to pay taxes on every transaction we make through the service provider while sending money abroad. Taxes can range from anywhere between 2%-10% depending on the country you are sending money to. But the money sending service does not have the right to increase the tax as per their preferences and charge whatever they want. If they do, EFTA can block their license or impose penalties for this act.
These are just some of the things that help you protect your money. There are also many other things, but these are the ones that play an essential role in ensuring you are not overcharges, scammed, or mugged!