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How to save money on international transfers?

by on December 16, 2019 in Business, Ecommerce, Lead Article, News you can use, Nuggets, Small Business, Startups

How to save money on international transfers?

If you are running an international business, you are most likely making a lot of international payments. You may hire people from foreign countries or set up deal with other companies.

However, international bank wire fees are too high and even though PayPal is the current industry standard its fees aren’t the cheapest too. So, what can be done to save some money on sending money abroad frequently?

Try independent remittance platforms

Online is cheaper

Your bank may charge you $30 for ordering a wire at the branch. Online banking platforms are currently a standard, so it’s better to use them if you need to send money anywhere. Now, there are some independent financial platforms, which offer online money transfer services.

It’s cheaper for you because you send them a regular domestic payment (so you don’t pay any transfer fees there). Then, the company takes care of transferring the money between borders through their own network connections for you.

Local-focused transfers

There is a huge market of independent online-based companies, which offer cheap money transfer services to virtually any place in the world.

Moreover, some of them specialize on few particular countries.

So if you need to send money let’s say only from Poland to UK, you should choose TransferGo, as they have established a good connection between these two countries. If you run a business focused on Indian clients, maybe you should try to handle the transfers through Remit2India. Similarly, Caribe Express covers Dominican Republic…

Which remit company is the best?

It’s hard to answer which platform is the best, as each of them has different features. If you want to find the cheapest way to send money you can simply use a convenient compare tool.

For example, Wirly.com lets you type in your transfer details and the algorithm will show you how much your transfer will cost in different remittance companies. Then, simply sort the list based on transfer costs or maybe delivery time if you need to make an urgent payment.

Check the exchange rates

A good tip is to keep an eye on the exchange rates when sending money abroad.

Some companies may offer cheap or even “free” international transfers. The catch is in the high markup on the exchange rates. So for example, if $1=0.9EUR, the company will exchange your one dollar to only 0.7EUR.

Your recipient will receive less than you wanted to send him and you will be surprised what happened. Therefore, it’s important to find the information about rates used by your remittance service. Choose the ones closest to mid-market rates (these are the prices used by banks to handle currencies between financial institutions).

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