Some Ghanaians living abroad have found other means of remitting money to their relations and friends back home without using the traditional money transfer agencies. They have resorted to the use of electronic cards to remit because they find it more economical. For instance, the money transfer agencies charge averagely US$10 to transfer funds between US$100 and US$500 to Ghana, while US$17 is charged for a transfer of above US$500. However, it costs only US$2.0 to effect a transaction by using the electronic visa card, which is cheaper compared to the use of money transfer agency. Private inward remittances to individuals in the country have been dropping over the last three years, which some financial analysts have attributed to the global financial crisis. Of the total transfers for 2008, 19.2 percent of the total transfers accrued to individuals, which amounted to US$1,678.6 million, compared with 24.1 % in 2007 which also amounted to US$l,660.3 million. Latest figures from the Central Bank last Friday showed that the trend is likely to follow comparing the first two months of this year, to the same period last year. Last year in the first two months, 17.8% of the total transfers accrued to individuals, however within the same period this year, the figure has dropped to 15.1 percent. Mr Charles Mensah, Managing Partner of Trust Consult, a firm of chartered management accountants and consultants who alerted B&FT on this trend holds a different view. "It is very possible that the drop has very little to do with the global crisis but rather it might be due to the way we account for the remittances. The truth is that many of our relations in abroad are using the electronic cards in the transfer of funds to the dependants here in Ghana." He said a way must be found by the Bank of Ghana to capture these transactions to help in policy making. ''The current trend is that people living outside the country now open accounts, and apply for a visa card. They afterwards send the card with their password, and all the necessary details to their relatives back home. ''They load funds on the card, which can be accessed in any part of this world, thereby allowing their relatives to access it. Armed with the visa card and the password, relatives go to the nearest money vending point, and make withdrawals. "What this means is that the money which could have gone through the money transfer agent, and would have been accounted for is now channeled through the visa card. In the final analysis, the transaction therefore is not captured by the authorities for the purposes of planning," Mr. Mensah remarked. Mr. Mensah suggested that the Bank of Ghana should undertake a research to find out how much withdrawals are made within the cash points system. "I am very sure the banks will assist in this endeavour. If it is found out that the withdrawals are quite sizeable then invariably then we must find a way of accounting for them." In the early days, money transfer business was not considered as a credible business and most of the activity was done by underworld. Exchange rate was the motivation between illegal money transfers. Apart from civilized people, most of the people preferred to use this kind of money transfer where network of private individuals was offering money transfer services in all the countries. They were considered quiet reliable and good experiences of some of their customers’ generated recommendations. Money transfer business was flourishing but without credibility. Credible money transfer companies were lagging short due to high exchange rates offered by non-bank transfers. Education and awareness changed the way of thinking and with the internet revolution, a new wave of money transfer services appeared on the scene. Companies like Western Union have really given real credibility to this business and now money transfer business has been able to earn trust of customers at large. New millennium has opened new doors and with IT developments and emergence of technology savvy generation, unbelievable solutions have been introduced by Money Transfer companies. They have developed customized products by keeping in view the needs of different categories of customers from different parts of the world. Now, money transfer is carried out on really scientific grounds. It was never so much easy to transfer your money as it has become today. Source: B&FT