Transfer Money Abroad: Why You Shouldn’t Use Your Bank
Whether you’re an individual or a business, sending money abroad can be time-consuming and expensive. The good news is that it doesn’t have to be.
You may need to pay a supplier in Beijing, reimburse a freelancer in Warsaw, or send money to family in Abuja. Using your bank may seem like the easiest option. However, it is often one of the most expensive ways to transfer money abroad.
Continue reading to learn why international bank transfers can cost more than expected and discover better alternatives.
Why Banks Make International Transfers Expensive
Many people assume banks offer the best way to send money internationally. After all, their money is already in a bank account.
The reality is different. Banks often include hidden fees and additional costs that significantly increase the overall price of an international transfer.
If you want to transfer money abroad while getting the best value, it’s important to understand these charges.
Hidden Fees When You Transfer Money Abroad
Banks may advertise international transfers as simple and convenient. However, several fees can reduce the amount of money that reaches the recipient.
The Outgoing Transfer Fee
The outgoing transfer fee is a flat charge for sending money overseas.
At first glance, the fee may seem reasonable. However, it is only one part of the total cost. Some banks also charge extra fees depending on the destination and transfer method.
The Incoming Transfer Fee
Even after the money arrives, the recipient might face an additional charge.
Some receiving banks impose an incoming transfer fee before releasing the funds. As a result, the recipient receives less money than originally sent.
This unexpected deduction can be frustrating for both sender and recipient.
Poor Exchange Rates Increase Transfer Costs
Many people focus on transfer fees and overlook exchange rates. However, exchange rates can have an even bigger impact on the total cost.
The Exchange Rate Markup
Banks rarely offer the real mid-market exchange rate.
Instead, they apply an exchange rate markup. This means the rate offered to customers is less competitive than the actual market rate.
Although the difference may appear small, it can significantly reduce the amount your recipient receives.
Banks and high street transfer services earn substantial profits from exchange rate markups. This is particularly noticeable when customers send large one-off payments or need to make urgent transfers.
If you’re looking for the best value, comparing exchange rates is essential before you transfer money abroad.
Intermediary Bank Charges Can Reduce Your Transfer
International transfers often involve several banks before reaching the final destination.
Think of it like sending a parcel overseas. The parcel may pass through multiple locations before arriving. The same happens with some international bank transfers.
Fees for Transferring Money Between Banks
In some cases, intermediary banks process the payment before it reaches the recipient’s account.
Each intermediary bank may deduct a fee from the transfer amount. As a result, less money reaches the recipient.
The most frustrating part is that these charges are often difficult to predict before the transfer is sent.
Imagine mailing £100 in a birthday card and discovering that several organisations removed part of the money before it arrived. That is similar to what can happen with certain international bank transfers.
Why Bank Transfers Take Longer
Cost is not the only disadvantage of using banks for international payments.
Traditional banks still rely heavily on SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication.
Although SWIFT is widely used, transfers can sometimes take several working days to complete.
Delays may occur due to processing times, intermediary banks, public holidays, or compliance checks.
For people who need fast access to funds, waiting up to seven working days can be inconvenient.
Better Ways to Transfer Money Abroad
Modern money transfer services are designed specifically for international payments.
When choosing a provider, look for a service that is:
- Fast
- Affordable
- Secure
- Easy to use
Specialist money transfer companies often provide lower fees and more competitive exchange rates than traditional banks.
This can help you transfer money abroad more efficiently while ensuring more money reaches the recipient.
Why Choose DE Money Transfer?
DE Money Transfer combines low fees with competitive exchange rates to provide better value for customers.
In many cases, DE Money Transfer can be significantly cheaper than traditional banks and high street money transfer providers.
Speed is another advantage. Depending on the destination and payment method, transfers can often be completed instantly or within an hour.
Security is also a priority. Advanced anti-fraud systems and bank-level encryption help protect every transaction.
Whether you’re sending money to family, paying international suppliers, or supporting loved ones overseas, DE Money Transfer offers a faster, cheaper, and safer way to transfer money abroad.
Download the DE Money Transfer app on iOS or Android and start sending money internationally today.