Every Money Transfer And Remittance Term You Need To Know: Letter M
M
Last updated: October 05, 2022
Mid-Market Exchange Rate
Currencies get bought at the Ask or Buy FX Rate, and get sold at the Bid or Sell FX Rate. The midpoint of these two competing rates is the mid-market exchange rate. This is typically the rate you will see on XE.com, Google or other financial platforms.
Mid-market exchange rates are also called interbank exchange rates, and are mostly used by large financial institutions and global banks to trade huge amounts of money amongst them.
As such, these rates are generally not made available to individual retail customers. Therefore, the rate that you will get from a money transfer company will generally be lower than the mid-market rate.
Also known as: Interbank Exchange Rate
Also see: Ask FX Rate, Bid FX Rate, Buy FX Rate, Exchange Rate, FX Margin, FX Markup, Sell FX Rate
Further reading: 5 Key FX Concepts You Need to Know
Mobile Money Transfer
A mobile money transfer is a money transfer sent to a mobile wallet account that your recipient has. It is basically a delivery method you can use to pay your overseas recipient.
There are numerous popular mobile wallets like Google Pay, Apple Pay, GCash, etc., and if you send money directly into such an account that your recipient has, you are doing a mobile money transfer.
Also see: Delivery Method, Delivery Option, Digital Wallet, Electronic Wallet, GCash Wallet, Mobile Wallet, Money Transfer
Further reading: Delivery Methods for Money Transfer
Mobile Top Up
A mobile top up is a delivery method to pay your overseas recipient by topping up their mobile subscription; that helps them get more airtime, text messages or mobile data services. In that regard, a mobile top up is not a money or cash payment to your recipient, but rather a cash-equivalent.
This can be a great option to send money to friends and family when you do not want to give them cash, but rather a useful service like mobile airtime and data.
Check with your money transfer company if they support mobile top up as a delivery method.
Also known as: Airtime Top Up
Also see: Delivery Method, Delivery Option
Further reading: Delivery Methods for Money Transfer
Mobile Wallet
A mobile wallet is a digital or electronic wallet that can be installed on a mobile phone. Most modern digital wallets have a mobile app that you can install on your mobile phone to access your wallet at any time.
Mobile wallets are becoming an increasingly popular delivery method to send money overseas. They are more secure and the recipient has almost instant access to funds. A great example is GCash, the most popular mobile wallet in the Philippines.
Also known as: Digital Wallet, Electronic Wallet
Also see: Delivery Method, Delivery Option, GCash Wallet, Mobile Money Transfer
Further reading: Delivery Methods for Money Transfer
Money Transfer
A money transfer is an exchange of funds between two parties. In the simplest form, this could be a payment in lieu of a product or service you consume.
In the context of international payments and remittances, an international money transfer is movement of money from one country to another. Since this often involves two different currencies, currency exchange is involved.
Various ways to transfer money internationally include bank transfers, wire transfers, online money transfers, remittances and maintaining multi-currency bank accounts.
Also see: Money Transfer Agent, Money Transfer Operator (MTO), Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance, Remittance Service Provider
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance
Money Transfer Agent
A money transfer agent is a partner, affiliate or authorized agent of a money transfer company. In that sense, a money transfer agent is an entity that is different from the money transfer company on whose behalf it accepts money transfers.
Generally, money transfer companies partner with other companies and local players to provide an extension to their money transfer service locally. This makes it easier for customers to send money conveniently by visiting their local money transfer agent office.
Money transfer agent locations are located in shopping malls, grocery stores, supermarkets and other such easy to locate places. They also act as cash pickup locations for incoming money transfers to that location.
Also see: Money Transfer, Money Transfer Operator (MTO), Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance, Remittance Service Provider
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance
Money Transfer Exchange Rate
The money transfer exchange rate is the FX rate that you get when you send an international money transfer from one country to another. Often, the exchange rate you get on your transfer will be lower than the interbank exchange rate (also called the mid-market rate).
In addition to transfer fees, the exchange rate is one of the most important factor that influences how much money your overseas recipient will get from your money transfer.
Also known as: Remittance Exchange Rate
Also see: Money Transfer, Money Transfer Agent, Money Transfer Operator (MTO), Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance, Remittance Service Provider
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance
Money Transfer Limit
A money transfer limit is the maximum amount that your money transfer company allows you to send. Also called a sending limit, this amount is usually enforced at various levels that include the below:
- Per transaction transfer limits
- Daily transaction limits
- Monthly transaction limits
- Annual transaction limits
Many times, a money transfer company will raise your transfer limits based on your usage and their system not flagging any potentially fraudulent activity related to your account or transactions. You may also be asked to upload additional documentation to get the sending limit increased.
Also see: Money Transfer, Money Transfer Agent, Money Transfer Operator (MTO), Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance, Remittance Service Provider
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance
Money Transfer Operator (MTO)
A money transfer operator (MTO) is a financial institution that facilitates an international money transfer. Also called a remittance service provider, an MTO can be a bank or a dedicated money transfer or currency exchange business.
There are a lot of fintech startups coming up in the international money transfer space so you have a lot of choices when sending money overseas.
Also known as: Remittance Service Provider
Also see: Money Transfer, Money Transfer Agent, Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance
Multi-Currency Bank Account
A multi-currency bank account is a special type of bank account which lets you hold more than one currency. Standard bank accounts operate on a single currency, but a multi-currency bank account lets you hold multiple currencies at once.
Multi-currency bank accounts allow interconversion of currencies by allowing you to move balances from one currency to another within your overall account. Companies providing multi-currency bank accounts often allow this interconversion at highly competitive exchange rates that are very close to interbank exchange rates. They do this to encourage you to maintain and use your multi-currency account with them.
Since you can move money between your multi-currency bank accounts, they qualify as another delivery method to send money overseas.
Multi-currency bank accounts are a good fit for people who travel frequently for work or leisure.
Also see: Delivery Method, Delivery Option, Multi-Currency Card
Further reading: Delivery Methods for Money Transfer
Multi-Currency Card
A multi-currency card is the card equivalent of a multi-currency bank account. This offers you the convenience to use all the features of your multi-currency bank account in a card-like fashion. This includes withdrawing various currencies at international ATMs and making purchases in multiple currencies.
Also see: Delivery Method, Delivery Option, Multi-Currency Bank Account
Further reading: Delivery Methods for Money Transfer