Terms like exchange rate, currency exchange and money transfer can sound scary, but it's just a game of knowledge and experience. Still, transferring money abroad can be a complicated process, for some who haven’t made any international money transfer yet it might sound too much. Probably it is! Just like every lock has a key, everything that looks difficult has a way or two out. Here’s how your international money transfer experience can be simplified.
1. Compare Currency:
Before making a money transfer, the first thing you have to do is check the exchange rate. Check the currency and the value difference between both countries' currencies and then come to a conclusion as to how much you have to send. Never choose a service without comparing it to those offered by competing international money transfer companies. It will just take a few minutes and will assist you in determining which provider is the most reliable, has the greatest exchange rate, and has the lowest transfer fees.
2. Look for introductory offers and regular discounts
A lot of times banks have introductory offers for those who are making international money transfers for the first time, if you are one of those people, look out for these offers. Also if you are someone who regularly transfers money abroad, keep an eye out for regular customer discounts.
3. Check for hidden costs
The following is a typical breakdown of the overall cost of transferring money abroad:
The modest variations between mid-market rates' and the rates applied to the transaction are routinely exploited by international money transfer companies. To put it another way, they sell the currency for a higher price than they paid for it. Make sure the pricing differential between the 'buy' and sell' prices isn't too big compared to other providers.
You may be required to pay an additional price depending on the service you seek. When transferring money using a credit card, for example, there may be higher fees compared to sending money with a debit card or a bank transfer. If you send money overseas through a bank, you may be charged intermediate bank fees.
Incoming foreign transfers may be subject to a fee by some institutions. Always remember to follow up on such incidents.
4. The total cost
Be mindful and specific about the total cost! The exchange rate may be high, but the fees incurred may be low, or vice versa. When the exchange rate is favourable, a higher fee may be justified. Before you proceed with the transaction, calculate the total amount that the recipient will receive.
5. Avoid multiple transfers
Don’t make transfers in small bits, instead make one big transfer. This will reduce the cost which will be caused by constant transactions.
6. Wire transfers
Using credit cards to send money abroad can be pretty expensive as the transfer fees are much higher. A wire transfer is more cost-effective and accessible.
7. Make use of online platforms
Make use of online transfer services. They provide competitive rates and are less expensive than banks and Forex brokers. Online service also saves you a lot of time and is simple to use.
When you choose to send money abroad through a bank, you can use your relationship manager to negotiate a better rate than the card rate. Banks will convert your money at the standard 'card rate,' which usually has wide spreads unless you negotiate. Smaller banks such as RBL, IDFC, and others and third-party transfer providers such as HOPRemit provide competitive rates
9. Transfer speed
If you want to urgently transfer funds, only then opt for transfer speed, else you will be putting extra money for something which can be done in cheaper. Also make sure you read terms and conditions while choosing this.
10. Be aware of refund schemes and T&C
Read the terms and conditions well so that in case anything goes wrong or there are technical errors, you can get it refunded.
Remember that even minor differences in exchange rates and fees can significantly impact the final result when it comes to international money transfers. So, keep the above tips in mind to ensure you get the best value for your transfers and save as much as possible on your international money transfers.