Transferring money to another country can be a bit frustrating at times. Sending money overseas is becoming more and more commonplace as workers send money back home to family members and to pay bills, and expats make transfers to pay expenses or to make large purchases such as homes. At one point being a “multinational” company was a mark of longevity and size. In today’s environment many new businesses are multinational from day one.
When making an international money transfer, whether it is for personal or business reasons, it makes sense to understand how fees and exchange rates will affect you.
What To Look For When Making An International Money Transfer
Traditionally international transfers were made through banks, Western Union, or MoneyGram. The banks were the favoured choices for larger transactions such as buying a house or business transactions. The Western Union/MoneyGram duopoly was a frequent choice for individuals sending relatively small amounts.
What many users failed to take into account was the fees, both overt and hidden, that were part of the process. These fees can be as high as 29%, which substantially changes the value of money sent home and increases the cost of purchases. Even with the traditional bank fees who have an average fee structure of around 8%, this means a £1000 transfer will cost £80. Over the course of a year that is £960, or almost a full monthly payment.
Most banks and transfer agencies will quote you a basic fee plus the FX rate. The FX rate is the current exchange rate between the two currencies. It is not unusual for banks to say that the currency exchange is “commission free.” However what is frequently unsaid is that the exchange rate quoted is skewed in the banks favour. Bank transfers often take up to 72 hours to complete. The exchange rate in many cases is floating until the time the transfer is complete, which can also be unfavourable to the person making the transfer.
The easiest way to determine all of the fees, including the hidden ones, is to ask for the total amount in local currency that the recipient will receive.
TransferGo offers a fixed fee schedule, which is based on the country where the transfer originates. There are no hidden fees nor are the exchange rates manipulated to benefit the company. What the customer sends is what the recipient receives. TransferGo uses a “local in, local out” structure with most transactions completed within one business day. As an additional benefit to customers, the TransferGo home page has a conversion calculator which shows the exact amount the recipient will get. That amount is the same as is found on any currency conversion calculator in the world. This eliminates the need to worry about potential currency fluctuations and trying to time transfers to receive the best rates.
This amount of transparency and low fixed fees is one of the many reasons TransferGo is one of the leaders in the new generation of money transfer operators. TransferGo offers convenient web and mobile applications which gives customers the ability to transfer funds from virtually any place at any time, while offering a secure service that is fully licensed and meets all government financial regulations.