Despite the rise in the number of foreign money transactions over the years, the global average cost of remitting money internationally remains high. In fact, the average cost of sending money is 7% worldwide.
The good news is that money transfer options have developed over the past few years. The easiest way to move money abroad is through online money transfer service providers. Tech-enabled money transfer service providers have lower costs and deliver better exchange rates relative to their conventional payment systems by cutting off middlemen.
Say, for example, TransferWise. Let’s talk about it, shall we?
TransferWise is a revolutionary multinational money transfer provider, sometimes referred to as the “Robin Hood” of the money transfer industry. They seek to make bank transactions more economical than traditional banks by charging low and straightforward transfer fees and converting money at the true mid-market exchange rate. In other words, there’s zero markup on the exchange rate.
In addition to their money transfer service after signing up, you can join their seriously convenient Borderless account and get access to their credit card-like prepaid Mastercard.
The Borderless account helps you to receive money from GBP, EUR, USD, and AUD and keep more than 50 currencies, which is a little like holding an account in the US, the UK, the EU, and Australia. You can also move money from various currencies within your account, and they have a calculator to show you what you’re going to pay for everything.
That paired with an extra card means that you can spend it in any currency without the normal turmoil you get from involving banks and other cards. Their mobile app also rates well and is available on both Apple and Android mobile devices.
The best part, however, might not be so obvious:
For the sake of safety and customer service, the best choice is to start with a service that has offices in your country of residence. TransferWise has branches in the United Kingdom, the United States, Australia, Estonia (which includes Europe), Hong Kong, Brazil, Belgium, Hungary, Japan, Malaysia, Singapore, Ukraine, and the UAE.
TransferWise Methods Can You Use To Send Money
TransferWise acknowledges that there are a variety of ways individuals and companies can move money. As such, they provide a variety of ways to transfer money.
Bank transfers are very common and include the following different types of bank accounts:
- Bank Transfer
- Trustly Instant Bank Payment
- SEPA Direct Debit
Other payment methods accepted:
- Credit Card
- Apple Pay
- Android Pay
Bear in mind that not all countries and currencies are compatible with all modes of payment. As such, it’s your responsibility to check the method of payment that fits well for the country you live in and the country you want to transfer money to.
How to Receive Money from TransferWise?
You must have a local bank account to receive money from TransferWise, and you must be able to accept payment in local currency. This means that through TransferWise, you will only send the money in your country’s currency and the recipient will get the currency in their own currency.
For example, if you make a USD payment to AUD, the Australian dollars will only be paid to a local Australian account in Australia. This works the same for every country on the list where the currency can be received.
TransferWise is a money exchange business, but it’s also a currency converter.
How Much Do TransferWise Money Transfer Cost?
The sum you end up paying for each transfer will vary based on how much you send and where you send the money. The explanation of why this is often different is that the price of the service is based on a percentage of the wire transfer charge. Let’s run over a few explanations to make things easier.
Now, let’s presume you’re sending EUR 1,000 to the United States. The wire transfer charge for this exchange will be .5 percent of the amount converted or EUR 4.98. The mid-market exchange rate is currently 1.18500, so that would make it EUR 995.02. This means that the person in the United States will receive USD 1,179.10.
Let’s say you’re sending 1,000 AUD to the United Kingdom. The wire transfer fee is .7 percent of the money to be converted, making that 6.95 AUD. Then the sum to be exchanged depends on the mid-range exchange rate, which is currently 0.56436, making that 993.05 AUD. This means that the individual in Britain will receive GBP 560.44, which includes exchange rates and service charges.
How Fast is TransferWise?
When it comes to bank transfer transaction speeds, TransferWise is on par with the best.
The reality is that banks are a much bigger part of the time factor, and all is done in business days. In principle, TransferWise could hang on to your funds for a while but from our experience of using them and the feedback, TransferWise is outstanding in this regard.
Also, TransferWise does something the others don’t do. While not specifically helping speed, TransferWise sends a variety of handy emails so you know exactly what’s going on.
TransferWise is pretty ambiguous (understandably) because transfers will take 1-5 working days. They put out a disclaimer saying, “Every currency and every country is different. Converting your money can take a maximum of 2 working days, but it’s very rare that it takes this long.”
They also say, “And how quickly your transfer arrives depends on how quickly your recipient’s bank can process your money, as well as the way you’re able to pay in the country you’re sending.”
This is the same with a money transfer firm that specializes in bank transactions. TransferWise, though, has a trick up its sleeve.
Transfer speeds will be significantly improved if TransferWise receives the money from a credit or debit card. This means that the whole funding process is moved from days to nearly immediate. But don’t forget that the receiving bank will take its time, nevertheless.
TransferWise: The Easiest Way to Send Money Internationally
Although there are several alternatives to TransferWise, you can find that the fees for TransferWise are low and that there are no hidden fees.
So if you’re looking for a reliable wire transfer service, TransferWise is a great way to do it. They offer service to a number of countries and currencies. They also have no hidden fees and have fair, transparent fees.
Start using TransferWise today!