Global travel is set to gain steam in 2021 as more countries intensify their vaccination efforts. Indeed, second-quarter earnings from companies like Delta Airlines and United Airlines showed that more people are travelling. This article will look at some of the top tips to avoid or lower transaction fees when travelling abroad.
Comparing transaction costs
The most ideal method of saving or even avoiding transaction fees when travelling abroad is to compare the fees charged by various platforms. Fortunately, today, many online money transfer companies like Wise and WorldRemit state clearly the fees that they will charge in a given transaction.
They also provide the exact amount of money that the recipient will receive. Therefore, you can take time and look at the fees charged by leading financial companies. You can do this by just conducting a quick Google search, identifying the best money transfer platforms, and then doing the search manually.
On their websites, these companies have a simple feature that allows you to check the fees charged by the company. Some of these firms give you an option to even select the cheaper ways to send money. For example, some firms have a cheaper option if you are depositing funds using a debit or credit card or when you use wire transfer.
Bulk comparing prices
While checking the transaction costs by a company is a good option, a better strategy is to conduct a bulk search of the fees charged by various platforms. Fortunately, there are several money transfer companies that have simplified this for you and can help you find the cheapest way to send money abroad. They use data science and partnerships to help you check fees and offers within a few seconds.
There are several benefits of doing a bulk search using these companies. First, it will save you a substantial amount of time. In most cases, all you need to enter is the source and destination of funds and the amount you are sending. Second, it will show you more companies that you don’t even know about. Third, doing a bulk search gives you an opportunity to identify companies that are running offers and promotions.
The money transfer industry is a highly competitive one. As such, many companies are doing the best they can to onboard as many customers as possible. They do this because of the vast amount of money that venture capital firms have given them. One strategy is to give first-time customers an opportunity to send money abroad without paying a fee. The idea is that by offering a free transaction, the company will attract and retain customers who will bring more income over the years. Also, having such offers help companies to show that they are achieving strong growth. You can use Google to find companies with introductory offers.
Using a bank transfer
A bank transfer is a process where you send funds from your bank account to another person’s account. At times, a bank transfer is often a relatively cheaper option than other methods like a credit and debit card. This is because, with a bank transfer, the number of intermediaries are reduced. With a debit and credit card, there are several intermediaries, including Visa, Mastercard, and American Express.
Another option of avoiding transaction fees when sending money when travelling is to send in the same currency as the recipient. The benefit of doing this is that you will save money on currency conversion. These costs could be significant considering that some companies use currency conversions as part of their revenue strategy. Therefore, you should consult the receiver whether they are comfortable receiving payments in that currency.
Send money in bulk
The next option of slashing your transaction costs is to send money in bulk instead of sending it bits by bits. In most cases, sending $500 will attract less fees than 4 times $125 transactions. Some of these costs are processing charges of the money transfer company and those charged by your company. Therefore, you should seek to minimize the number of total transactions and send funds in bulk.
Look for coupons
Finally, you can save money when travelling by looking at companies that offer coupons. Many companies like Western Union and MoneyGram offer coupons as a way of incentivising new customers. They also do that with the goal of increasing their volume. Therefore, you should use some of the best-known coupon code companies to find coupons.
Looking at some strategies to avoid or lower transaction costs when travelling abroad? Some of these options will lower your cost whilst giving you an equally good service. Other strategies that can help you are to use low-cost cryptocurrencies and to send money to a person in the same network.