What is a remittance transfer provider?
Answer: Under federal law, a remittance transfer provider is a business that transfers money electronically for consumers to people and businesses in foreign countries.
These companies include many money transmitters, banks and credit unions, and possibly other types of financial services companies.
Remittance transfer providers typically must:
- Provide before consumers pay for an international money transfer. This includes information about:
- The exchange rate.
- Fees and taxes they collect from you.
- Fees charged by the companys agents abroad and certain other institutions involved in the transfer process.
- The amount of money expected to be delivered, not including foreign taxes or certain fees charged to the recipient.
- If appropriate, a statement that additional foreign taxes and fees may be deducted from the remittance transfer.
- Give you about when the money will be available, instructions on your right to cancel transfers, what to do in case of an error, and how to submit a complaint.
- Give you a chance to cancel the transaction. You will typically have 30 minutes (and sometimes more) to cancel the transaction at no charge, unless the transfer has already been picked up or deposited into the recipients account.
- Investigate errors. If you think an error was made with a transfer and promptly contact the company, it generally has 90 days to investigate the matter. The company also must notify you of the investigations results.
Other protections may be available to you, depending on how you send the money and the laws in your state.