International money transfer is an essential part of many people’s lives, and it can be very time-consuming. The average person typically transfers funds at least twice a year to support family members. However, whether you are sending $10 million or just a few hundred dollars, there are ways to save time and get the best deal on international money transfers. This article will discuss how to do so with expert tips that every user should know.
Watch Out for Fluctuating Money Transfer Rates
The fluctuating money transfer rates could cost you a lot of cash because when it’s time to send your funds abroad, rates are unstable. You have options! Many companies offer tiered pricing for international transfers, which means that the more money you send, the less percent there will be in fees.
If this is your first time shipping a large sum of cash abroad, it may make sense to split up your transaction into two or three parts and transfer with different companies for the best rates. This way, you’re not wasting any potential savings by committing all your cash to one company.
Better To Send One Large Transaction
One of the most common mistakes you can make when transferring money is to send frequent, small transactions. For example, you might send money, approximately €100, every week or so. The problem with this strategy is that, because more transfers are involved in a given period, each transaction incurs a fee.
So, it is better to send a significantly large amount so that you can use the exchange rate when it is more favorable for your region. Also, make transfers fewer annual transactions to save both money and time compared to sending frequent small transfers.
Don’t Use Small Transaction Platforms for Large Transfers
If you send a large amount of money overseas, do not use an online transaction platform with low transfer limits. They will likely charge you more for the same service as other providers and slow down your international money transfer process. Instead, look into larger companies or banks that usually have better rates than smaller platforms for this type of service.
When you’re sending large amounts, such as a monthly salary, for example, it’s best to use a more reliable platform. Smaller platforms might have limitations when transferring higher sums of money, so there is the risk that funds will not arrive on time or not at all. However, when you make a transfer in one go rather than break down – it’s worth using a smaller platform for smaller transfers.
In addition, smaller platforms sometimes are unreliable, and they don’t have a customer support system or live chat option available.
Avoid Exaggerated Transaction Costs
When you’re sending money abroad, understand the fees involved. Some companies charge a percentage of the amount forwarded; others charge an average cost per transaction. So if you are transferring $100 and one company charges a five percent transfer rate (percentage), they will take your entire sum while another might only charge fifty cents.
It’s always important to compare fees and make the best decision. For example, if sending a large sum of money, it might be wise to pay an extra percentage point or two for the sake of saving time later down the line when you need more information from your bank account provider (potentially). However, if you are transferring fifty dollars every day, the percentage fee might be negligible.
Understand the Transfer Limits
Every transfer service has a limit, so be sure to check those out before you send your money. For example, some services only allow transfers that are less than $5000, and others have stricter limits of just €5000 or £10000 (if they’re available in the country where you live). If there’s anything over this sum listed as the limit, the transfer may not be successful.
Find Out About the Refund Policy In Case Of Failed Pick-Up
Understand the refund policy if you send money and no one comes for it. The best way to find out a company’s policies is by asking them in advance or reading their website closely. For example, Transfer-wise doesn’t offer refunds on failed pick-ups unless you used an insurance payment protection plan when sending your money.
It’s essential to be aware of the various risks and considerations when transferring money internationally. It’s also worth considering that currency conversion rates can vary from provider to provider, so it pays to shop around for a deal or compare prices on an international transfer before signing up with any company in particular.