The costs of sending money abroad will vary among different remittance providers, so choosing the best fit is key to getting the most out of your money. Here are some things to consider when choosing one for your next international transfer:
When it comes to international transfers, many fees influence the cost of your transaction. Let’s say you are going to send 300 USD to Mexico. While banks charge an average of 10% per transaction, partners like WesternUnion will charge 2-8 USD depending on the payment method. Paying with a credit card might have a higher fee because these transfers are considered cash withdrawals, which come with an extra 3% fee. You can also use Remitly where the transfer will be fee-free if you send more than 500 USD.
When transferring from one currency to another, the exchange rate is something to consider. It is the value of one currency against another. Finding the most favorable exchange rate will get more money to your recipient. Although the exchange rate does not vary much between providers, banks usually have the least competitive exchange rate. That is why using comparison tools will come in handy when shopping for the best provider. Compare before you send and save money!
The best option to send money abroad will depend on your specific needs and transaction size. While some partners offer more competitive fees, others offer easier pick-up. However, banks are often the least competitive option to make overseas transactions.