Banks vs online money transfer services
When it comes to transferring money overseas, many continue to exchange their money through banks instead of using an online money transfer service. The benefit of using an online foreign exchange service is that the customer tends to agree to avoidable commissions and fees that come with bank transfers. Most of the time people transfer internationally via their bank because it is familiar: They have always trusted their bank and have used them for years – why should they change?
In actuality, the banks are not specialists in currency exchange and are often charging customers more than they can afford. If you want to send money to South Africa from Australia, here are just some of the reasons why you might consider switching to an online specialist in currency exchange.
Transfer services are faster and more efficient than banks
Making international payments was once a pretty time-intensive process. From calling around to find the best currency exchange rates to faxing forms back and forth and physically banking cheques, it was inevitable a better business solution would come along.
As you might have expected that better way has come via digital delivery with all your international payments now able to be completed with a few clicks online.
However, not all banks are as friendly to online solutions as you might like, and you may have to visit a physical location and deal with someone face-to-face to order a money transfer. By using an online service, you can exchange funds wherever you are with a secure internet connection. Do not drop everything you are doing to spend the day in a bank; move your money efficiently online and then move onto more interesting activities.
Bank-beating exchange rates
If you are exchanging money through your bank, you are probably not getting the best deal on exchange rates. Furthermore, a bank’s currency exchange might often be outdated. Most institutions follow the interbank rate and then base their own exchanges around it. You may see a difference of up to five percent which the bank is pocketing. Forex services, on the other hand, typically work to find the best exchange rates possible.
The hidden fees and costs
Most banks charge customers a small percentage of the money transfer as a fee for their service. These small costs might not seem like much, but they add up. If you must put down an extra five percent every month, you could be losing thousands annually. You already must stretch your funds, so why are you giving so much away to a bank?
Instead, look for international money transfers that only charge flat fees on your transaction. Not only will this help you budget your expenses for the month (and year), but it will also save you significantly in the long run.
Which online transfer service should you use?
With the rise in online transfer services, you will no doubt be inundated with options. However, many online transfer services do not have human consultants on hand to assist you with issues that might arise.
We recommend always checking customer reviews and ensuring that you can find the contact numbers you will need. In the case of sending money online, make sure you use a service with impeccable reviews that is known for its great customer service. The experience becomes much easier if you speak to an expert and gain insight and advice regarding your transfer and future transfers. Saving a few AUDs in the short-term may not be worth it if you cannot fully trust the transfer service you are using, especially if you are going to be doing more than one transfer.
Send money instantly
Sending money overseas does not necessarily have to be a long, drawn-out process. Today, specialist money transfer companies offer the fastest and cheapest way to move your funds abroad with hedging tools built-in as an additional benefit.