Due to the evolution and advancements in financial technology, people now can make international money transfers quickly and painlessly.
However, money transfers are consumption, it cost some fee. It’s either you get charged a fee on top of the principal amount you wish to send, or the recipient receives a lower amount or both.
Hidden Fees of International Money Transfers
Hidden fees typically involve commissions and weak exchange rates built into the money transfer process. These fees are not only charged to the sender but also the receiver.
Hidden Currency Conversion Fees
Every bank or non-banking institution has its exchange rate fee, which applies when sending money from one foreign currency to another. Banks usually charge incredibly high hidden currency conversion fees depending on the currency. The banks take advantage of the opportunity because customers don’t see the fee. Also, the fee isn’t declared, and you might not pay attention to it. People usually think that these fees are legitimate costs or normal of transferring money.
Here are the hidden currency conversion fees of some non-banking wire transfer service providers (based on transferring $500 to Indian Rupees for the payment of employees in India):
Money Gram: $2.50
Western Union: $3.50
Ria Money Transfer: $3
Xoom: $7.50
PayPal: $12.50
Epay:$0 (blockchain based)
How to Avoid Hidden Fees
When you want to transfer money internationally, it’s always expected that you should accept the fact that it will cost you money. Most bank clients no longer question the fees they need to pay to use this service but very rarely do they look at other factors, such as foreign exchange rates, when doing so.
The service gets even more expensive when the recipient needs to receive the money urgently or when you need to send a more substantial amount. However, you can reduce the fees you need to pay by:
Wisely choosing your money transfer vehicle. Apart from banks, you may opt for international wire transfer providers that offer lower fees and charges but competitive foreign exchange rates.
Scheduling recurring money transfer. If you need to send a predetermined amount of money on a predetermined date, some banks offer recurring money transfer services, which help you save a couple of dollars.
Regularly checking foreign exchange rates. Foreign exchange fluctuates almost every second of the day. It’s a fact that’s out of our control. However, if the transfer can wait until Forex is more favorable to you, then do the transfer at that moment.
Here are the benefits of using online money services:
- Competitive exchange rates
- Minimum fees or zero hidden wire fees
- Fastest transfers with competitive pricing
- No caps applied on the international wire amount
- Real-time online payment tracking
- Payment services worldwide
- Live support
Peace @paymentthing
International transferred fee will be reduced by the block chain technology.
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