Do you want to send money abroad to relatives or for a business transaction? Several factors determine how much you pay as fees and how fast your money moves. These factors will determine how much the recipient receives. Online money transfer services offer simple platforms with straightforward fees. The factors below will affect your international money transfer:
Exchange Rates
Where are you sending your money? The location of the recipient and the exchange rates offered by the money transfer operators will determine how much money gets to the recipient. Thanks to the highly competitive marketplace, operators offer the best exchange rates possible. The difference in the exchange rates may save you only a few dollars with each transfer, but the savings can be significant if you send money often.
Fixed and Indicative Rates
Money transfer operators offer fixed and indicative exchange rates. Fixed rates are ideal for most people – these rates are applied to a transaction exactly as quoted during the transaction. With a fixed exchange rate, you get what you see. Since the exchange rates fluctuate, a fixed exchange risk cushions in case the rates are low at the time of the transactions. However, when the transaction is instant, you get the actual exchange rate when you send money. Non-fixed exchange rates change from time to time. The quoted exchange rate may not apply when payment is processed if the transaction is not instant.
Transaction Costs
Every international money transfer service charges a fee for all monies sent. The fee structures are different from one operator to the next. Some operators charge a percentage of the money transaction, while others charge a flat fee. Other operators charge a tiered fee that increases with increased money transacted. The delivery and payment method you choose will also determine the fee you pay.
Credit card payments are expensive when you want to send money internationally. If you need affordable methods, opt for bank-to-bank transfers or go the mobile money way. Mobile money transfers are convenient and affordable for sending money abroad or shopping online.
Transaction Limits
How much money do you want to send abroad? Most international money transfer operators have limits on how much money you can send within a day. In some situations, legal controls in the destination or source country affect the amount of money you can send. If you intend to send a large sum of money, split it into smaller transactions or use different providers.
Payment Methods
Most online and mobile money transfer methods allow you to load your account differently. If you use a credit card to deposit money in your account, the costs might be high, but if you use an agent, you may pay less. The delivery method, or the method the recipient uses to access the money, will also determine the final cost of the transaction.
Although international money transfer can be expensive, with the right operator, you can reduce the costs. Check out deals, promotions, transfer times, and other factors to choose the right operator. Majority can offer the convenience and affordability you need to make international money transfers. Check out their rates today.
