With today’s new and evolving technology, sending money abroad for personal or business use is as easy as 1-2-3. All it takes is a click of a button, and you’ll be able to transfer your money internationally in just a matter of minutes. Also, there are many applications and websites online that will help you with the basic process.
However, such applications don’t come cheaply and for free. There are fees and deductions you might encounter. For example, if you send USD$1000 overseas, you might be required to pay USD$1010—not to mention some fixed charges. Also, you might encounter some instances when you have to pay some hidden and extra charges you don’t even know about.
Additionally, not all of them offer the same conversion rates. If you’re not picky enough or forgot to do your homework, you might end up with a service that requires high conversion rates.
Furthermore, you might want to learn the following tips and tricks below to avoid becoming a victim of costly international money transfers:
1. Check Every Charge And Fee You Have To Pay
As mentioned above, money transfers come with service fees and other hidden charges. So, it’s vital to check and dive deeper to determine the ones you might need to pay later. Here are some of them you might need to know:
- Transfer Charges: The transfer fee is a charge for transferring your money. Depending on the platform or the amount, the transfer fee can be based on the amount you plan to send or a fixed rate.
- Currency Exchange Rate: Take a look at the conversion factor between money transfer companies and Google. You’ll see that these companies offer a slightly lower rate than what you should receive. It is another way in which money transfer companies make money.
In addition, many companies offer different exchange rates, and it would be best to compare them first before making a transaction in one of them.
- Extra Charges: Other fees may apply based on the service you want. For example, if you want your money to be transferred in seconds, you have to pay additional fees for that to happen.
Also, if you’re planning to send money through other banks abroad, you might need to pay intermediary bank charges for the connections they make between them and the money transfer platform or your local bank. On the other hand, if you’re to receive the money, the bank you’ll transact with might charge you overseas transfer fees.
That said, it’s now your task to look for and compare local banks and online money transfer platforms to determine which offers low rates and no other fees.
2. Know What’s Important For You
When choosing a money transfer platform, you have to keep in mind the essential features and services you need. That is to avoid charges for the services you don’t need. For example, if it’s unnecessary for an express transfer, there’s no need for you to choose fast-delivery platforms.
Here are some tips to keep in mind:
- Price Range: Take a look at the price range and how it could affect the fees you have to pay. It might depend on the payment method or the speed of transfer. The faster the transaction, the higher the charges you have to pay.
- Accessibility: Look for services and platforms you can access, depending on where you live.
- Transfer Speed: As mentioned above, only apply for an express money transfer if necessary. If not, then don’t use it to avoid incurring additional charges.
- Convenience: Online money transfer platforms are more favorable than waiting in line for hours. However, this convenience may also require additional fees. Also, you may consider which companies offer easy navigation and the use of different functions.
Furthermore, knowing what’s important will help you avoid unnecessary expenses and lower your international transfer fees.
3. Dissect Different Methods Of Money Transfer
You can send and retrieve money overseas in many ways, called pay-in and pay-out methods. The pay-in methods are funding accounts with money sent abroad through banks, credit and debit accounts, or e-wallets.
On the other hand, pay-out methods are how your recipient receives your funds. Here are some ways you can facilitate pay-out methods:
- Pick-Up Through Local Agents: With this, the recipient receives the cash with the help of money transfer agents, such as your local bank or remittance center.
- Money Transfer Through Bank: The money will be directly deposited into the recipient’s account using your chosen currency or local currency.
- Send Money Using Your E-Wallets: Like a bank transfer, however, money is not deposited in a bank but on digital wallets, which are apps that manage money like banks.
Remember, different methods have different charges. Usually, the most convenient is the most expensive, but this is not always the case. So, do your homework and proceed with tip number one to save more.
Because of recent advancements in technology, international money transfers are now hassle-free. You can transfer money abroad with your local banks, e-wallets, or other online money transfer platform. However, you have to be careful in selecting the method to avoid costly and extra charges.
In that case, you may use the three tips and tricks discussed above to avoid paying fees you don’t need, especially when it comes to extra charges. You may compare rates and service fees of different platforms, determine what you need, and learn more about the methods you can use.
With these tips, sending money abroad will never be as expensive and stressful as before.