Any financial contract is complex – and they all seem to come with their own set of acronyms. There are plenty of things to think about if you’re transferring money overseas, and the first thing to do is become familiar with some of the words you’re likely to hear as you weight up you options. Such as:
Account number: The identification number for your account, or for the account to which you are transferring money. When making a money transfer, you will usually need to know the other person’s full name, address, account number, and Branch Number or Bank Identifier Code.
ADI (Authorised Deposit-Taking Institution): An institution authorised and accredited to provide banking services and receive and manage deposits in customers’ accounts.
Balance: The amount of money remaining and able to be spent in your savings or transaction account at any point in time.
Conversion fee: Any fee charged to convert one currency into another before or after transferring.
Conversion rate: Also known as the exchange rate. This is a particularly important rate to pay attention to when calculating how much your international money transfer is likely to cost!
Exchange rate: The ratio at which one currency buys another, which determines the value of one country’s currency by comparison to another. For example, the exchange rate from NZD to USD at the time of writing is $0.66 to the dollar.
Foreign currency: The local currency of any country outside New Zealand.
GST: Goods and services tax charged on purchases made in New Zealand. Certain internet purchases may also be subject to GST.
Internet banking or online banking: Banking that is done via the internet on a computer or mobile device.
Transfer: To send money from one account to another.
Visa: A document from the government of a country that grants permission for a person to come to that country to holiday, live, work, or study.
It’s important to note that these are a general explanation of the meaning of terms used in relation to international money transfers. Your provider may use different wording and you should read the terms and conditions of your product carefully to understand what fees and charges may apply. Refer to the product disclosure statement from your provider.