6 Ways to Save Money When Sending Money Abroad

Sending money abroad is as simple as deciding on a money transfer service, filling out details, and pressing send. However, much more is happening beneath the surface, and it can be expensive if you’re not careful. With this in mind, we’ve put together a series of tips for saving on international money transfers.

Send Large Amounts

If you need to send money abroad regularly, you will find that it’s more cost-effective to send it in one large lump sum instead of smaller payments. Every time you send money internationally, you’ll have to pay a transfer fee, and these will soon add up.

When sending large sums of money abroad, it’s important to choose the right payment service because some of them are designed for small transactions and large ones. For example, services like Stripe and Square have caps of around 3,000 USD and often come with high fees for the privilege. On the other hand, Foreign Exchange services are designed to facilitate large international payments, and many of them will have good rates.

Double Check Recipient Details

No matter which method you use to make an international money transfer, you’ll have to enter the recipient’s details. Before you proceed with the payment, double and triple-check that you input the details correctly. Payments sent to the wrong account are often lost forever, meaning you’ll spend double on trying to make the payment again.

Spend Time Comparing Service Fees

Every money transfer service will charge a different rate per transaction, but you’ll find significant differences depending on which you choose. Therefore, after narrowing down your options, put some time aside to compare transaction fees. You should do this every time, as transaction fees can fluctuate, meaning the cheapest option might be more expensive in the future.

Consider Blockchain Payments

Cryptocurrencies, made possible by blockchain technology, have gained enormous popularity over the last decade – and with good reason. Blockchain is a decentralized ledger technology that protects users and cuts out the middleman, often making it cheaper to send funds. Additionally, blockchain operated without borders, meaning crypto payments to a neighbor are the same price as sending internationally. To find out more about sending money using cryptocurrency, read this article.

Avoid Paying to Speed Up Transactions

Many international payment systems take around five days for funds to clear into the recipient’s account, which isn’t too bad considering the journey it has to go on. In some cases, you can pay additional funds to speed up the process, but there’s not much point unless you’re desperate.

Never Use Your Credit Card

Many money transfer services accept credit card payments, but the fees are always much higher than using other options. If you have no choice but to use your credit card, make sure you calculate the total cost and make a plan for clearing the balance quickly.

People make international money transfers daily, but it can become extortionate if you don’t know how to navigate the landscape. By following the simple tips above, you can save your hard-earned cash.