Making international banking & money transfer is not difficult. Many companies offer this service now. Another thing is that it can be expensive. Attention to three simple factors will help to eliminate such a nuisance. Further, we will talk about them.
International Banking & Money Transfer: Save Your Time And Money
Tip 1: consider all the components of the commission
Quite often, when choosing a company through which the translation will be carried out, people pay attention solely to the service’s cost. However, it is not an exhaustive indicator. The final cost of a money transfer includes several types of commission. Therefore, often, in the end, it turns out to be significantly higher than the amount indicated in the advertising booklet.
The first secret to saving money on transfers is to pay attention to all the commissions that the bank/service includes in the cost. Often these are:
- Transfer fee.
- Currency conversion commission.
- Extra charges.
- Commission for receiving the transfer.
The latter is not provided in all banks. Therefore, it can be excluded by specifying the presence of such a representative of the organization. If you find a bank that does not charge a fee for receiving a transfer, you can save money.
Let’s consider the rest of the cost components in more detail.
It is this amount that is most often paid attention to when choosing a service provider. However, it is only a fraction of the final cost. There are two types of payment for the operation: a fixed commission or a percentage of the transferred amount.
Exchange rate margin
Represents the conversion commission. This component of the cost is relevant for transfers carried out between countries, such as Italy and the USA. With such a transfer, you may need to convert the euro to the US dollar.
It’s okay to want to find a good exchange rate online. However, the action may not be effective. The Internet provides information about interbank rates for currencies, which are not available to the average consumer.
They are a kind of “wholesale” prices that apply exclusively to transactions between large banks. The exchange rate for regular transactions is different. The bank takes the difference between the rates. Therefore, be sure to check with the organization for the current rate.
It depends on the selected service and its parameters—for example, replenishing the transfer. Many organizations charge a surcharge if they use a credit card at this stage. But a bank transfer is deprived of such a commission. As well as replenishment from a debit card.
There is also an additional commission for urgent transfers. Therefore, choose it only when you really need it.
The fees of the intermediary bank are also possible. Its participation in a transaction is typical for international transactions. Also, some banks set a commission for an incoming transfer from another country.
Tip 2: prioritize
The best way to save money is to understand exactly what you need. This eliminates fees for unnecessary services. When choosing a company, keep the following things in mind:
- Price. It is influenced by many characteristics of the transaction, including replenishing the transfer, the amount, and delivery methods.
- Operation speed. This was mentioned above. Usually, a domestic transfer takes 1-2 days, and an international one – from 2 to 5 days.
- Availability. Make sure that a specific company or service is available in the recipient’s city.
- Convenience. Choose an easy-to-use service. Also, consider the convenience of translating. Online services are often the most comfortable.
Remember, safety comes first. Therefore, if you want to make a money transfer in a public place, you will need installing tools like VPNs. This will help avoid data leakage and make the connection as reliable as possible.
Tip 3: inquire about deposit and withdrawal methods
You can send money from one country to another in different ways. As technology advances, the choice only increases. Therefore, the question is which method is more convenient in a particular case.
In the selection process, it is recommended to pay special attention to receiving and withdrawing money. Moreover, you can find the most convenient one. And this applies to both replenishment and withdrawal. The only thing is to check if a specific method is available in the recipient’s country.
Most often, services offer several options for depositing money. You can do this in cash by visiting the organization’s office, by bank transfer, or by card (debit or credit). Replenishment from an electronic wallet is also often offered—for example, Paypal.
The options are almost identical to the previous ones.
However, depending on the method of payment of funds, commissions and transfer costs differ.
- Cash. Such payments are only possible at customer service points. If money is sent through a bank, you need to find a specific city branch—more convenient international money transfer services. For example, Western Union or MoneyGram. Many of these services have a wide network of representative offices, making it extremely easy to translate. Also, some organizations offer courier delivery. That is, door-to-door.
- Bank account. This method will require entering the recipient’s account number when making a transfer. Most often, money is credited in local currency. However, the conversion is optional. The transfer can be credited in the currency chosen by the sender if the recipient has a corresponding card.
- Mobile wallet. The translation goes directly to it. Such wallets are analogous to a bank account tied to an application or a phone number.
- Bankcard. Quite a convenient way, which is often used for translations to family and friends. The recipient can pay or withdraw money from an ATM immediately after receipt of funds.
5 life hacks to help you save more
- The most expensive are the services of banks and services such as Paypal. Therefore, they should be avoided.
- Look for a money transfer company. They are cheaper. To keep yourself safe, give preference to organizations approved by government agencies that exercise financial supervision.
- Check the exchange rates. Sometimes, just by waiting an hour, you can significantly save on conversion fees. Some services notify about course changes.
- Check for special offers. Money transfer companies often offer discounts or coupons. Therefore, before registering the operation, check the availability of those.
- Look for what you need now. Transfer fees differ depending on the amount. Some companies offer low-interest rates for large transactions, while others set favorable prices for small transfers. Therefore, research different services.