In the modern era with so much different technology at our fingertips it seems as though the world is getting smaller and smaller especially with airlines adding new routes and people being able to communicate with loved from anywhere in the world 24/7 if they wish.
Many people have decided to either travel or have seen the appeal to living abroad and whether you’re sending money to friends or family as a gift, to help out or even a loan the cost of transferring money from one country to another can rack up quite a bill. Previously major banks and bigger transfer companies domineered the market, with charging huge fees and high exchange rates meaning you pay a great deal more to send the money. Yet over the last few years everything has been rapidly changing as smaller online companies have been offering money transfers for a fraction of the cost with including exchange rates in their fees.
These online companies can vary massively, but like everything there are comparison sites to determine which tariffs and rates are most suited to you and your needs. With banks and transfer companies they actually set their own exchange rates which means they can set it as high as they like. If you transfer money through banks obviously you have the security that they are liable if the money goes missing. Yet now if a smaller firm loses your money during the transfer you have the right to complain and in most cases they will investigate the matter and repay the money.
Different Online Transfer Services
Obviously transferring money globally through your bank is one way but in most cases it actually isn’t the most cost effective way of managing international payments. EcoPayz is a company designed for global payments to be transferred safely as well as easily. Online money transfer through ecoAccount is a great way to cut costs with both exchange rates and if the person on the receiving end also has an ecoAccount there are no hidden fees unlike transferring money through banks. Another service that works on the same basis is TransferWise, which works by redirecting your payment to another user of its service who is receiving an equivalent transfer in the opposite direction, this like with ecoPayz cuts out the costly process of converting the currency and transferring the money.
Another popular method that many within the UK have heard of and may already have an account with is PayPal which also offers overseas transfers. If you are using your bank account or PayPal balance, fees are between 0.2 and 0.3 per cent. If you use a debit card there will be a charge of between 3.4 and 7.4 per cent plus a small fixed fee that will depending on the currency you will be exchanging. The biggest advantage with PayPal is that you can make an online money transfer just using the recipient’s email address or even number which is more convenient and usually safer over bank details. However if you decide to pay by card the rates aren’t as competitive as designated online money transfer companies like TransferWise and ecoPayz. Either way before deciding to make global transfers instead of just heading to your bank, it is best to use comparison websites to find the most cost effective way to making an international payment.