Every Money Transfer And Remittance Term You Need To Know: Letter L

Last updated: October 05, 2022

Local Payment Method

A local payment method is a payment option that is prevalent in a region or country, and generally not globally. For example, FPX in Malaysia, iDEAL in the Netherlands, POLi in Australia and Sofort in Germany.

The biggest advantage of using a local payment method to pay for your money transfer is that payments made with it tend to be either free or have a very low fee. You can save money by using a local payment method instead of other options like cards, etc. Just make sure that your money transfer company accepts the local payment methods available in your country or region.

Also see: Electronic Payment Method, Non-Electronic Payment Method, Payment Method
Further reading: Payment Methods for Money Transfer

Locked-in Exchange Rate

A locked-in exchange rate stays fixed, or locked in, for the whole duration of your money transfer transaction. In other words, a locked-in exchange rate is immune to exchange rate fluctuations - the rate that your transaction is initiated with will stay constant, and your transfer is guaranteed to clear at that rate.

Locked-in exchange rates are a great way to avoid losses if the exchange rate for your currency pair goes down. On the other hand, you may also lose out on potential gains if the exchange rate goes up.

Also known as: Fixed Exchange Rate, Guaranteed Exchange Rate
Also see: Exchange Rate, Floating Exchange Rate, Indicative Exchange Rate, Variable Exchange Rate
Further reading: Currency Exchange Rates: What Are They, How They Change, and More
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance