Hidden Costs of International Money Transfer
Aside from the actual amount that you are sending to your offshore employees, you or the recipient is also paying for other charges. If you transfer money bank to bank, say for $1,000 USD, the recipient will most likely receive an amount lower to what you sent. Here are some factors and hidden charges that can add up to your costs;
Premium for Same Day Transfers
Banks and money transfer companies charge a premium for same day transfers. When the usual transfer duration is 3-5 days, you might be inclined or obligated to pay more for the quick send. Same day charges cost as much as 10% of the transaction amount.
Because of the automation and cutting-edge technology, the more advanced ways of sending money abroad would deliver just as fast without the additional charge. For 2% of the transaction amount, CoinPip guarantees delivery to less than 48 hours. Service fee for same day transfers is 3%. No fixed rates are added, so costs remain constant despite sending smaller amounts to more people.
When you send money internationally, you are transacting in the currency market. But you are doing it Through a FOREX merchant or dealer – a bank or a pseudo-banking institution, who is in turn dealing with another merchant in the destination country. Your firm will sell you the currency you need, use the money you paid them to buy the currency from the receiving bank. Any difference in the rates results in costs or gains that are also applied to the charges.
Some charges you pay when you transfer money overseas are not even explained by the bank or the transfer firm. They are often classified as ‘Other charges’ or in other vague descriptions. When you send $1,000 USD and the recipient receives $998 USD, that is an additional $2 gone to hidden charges.
We don’t usually complain because the bank or the clerk you’re dealing with will just give you some vague and complicated explanation. But when you’re talking about multiple and repetitive transactions, these hidden charges, add-on fees, and costs could add up. If you’re keen on going global, you must find a reliable, safe, and feasible solution to send money the smart way.
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