International remittance is a wide and vast field, networking almost all nations with each other on the basis of cross-border money transactions and currency exchanges. International money transfer is a serious business with certain principles to organize the entire remittance system. Here we are going to venture into the core general principles of International Remittance Systems:
Transparency and Customer Protection
Remittance providing agencies must assure transparency in their services so that the customers can analyse and decide which service to choose. There must be an open view about the prices including service charges, approximate time of money delivery, access points in both sending and receiving countries etc. At the same time, there should be adequate customer protection securing the data of the sender and the receiver.
Payment System Infrastructure
According to the infrastructure of the sending and receiving countries, the payment system has to be improvised to meet the efficiency of remittance services. Domestic payment systems, national payment systems and cross-border payment arrangements must be facilitated depending on the development stages of the countries.
Legal and Regulatory Environment
Remittance services should be supported by a non-discriminatory and proportionate legal and regulatory framework with relevant jurisdictions. This framework includes both the general legal infrastructure such as laws relating to contracts, payments, securities, banking etc. and any specific statutes, case law, regulations or contracts relevant to remittances.
Market Structure and Competition
The efficiency of remittance services always improves with the competitiveness of its business environment. In real competitive markets, there will never be monopolistic practices. Instead, the agencies will be fighting each other to offer lower prices and improved service levels, this benefits the remittance customers.
Governance and risk management
Appropriate governance and risk management practices can effectively enhance the safety and soundness of remittance services. These governance structures enable the remittance providers to fulfil their responsibilities to the customers, thus, protecting customer rights.
These are the general principles of the remittance system followed by the best online money transfer in Australia and across the globe. Abiding by the principles can bring better organization and authentication for the service providers.