A transaction fee for overseas remittances averages at 7%, but you can send money online without spending a penny. The advantages of sending funds through the right channels online include that of it being nearly instant, easy, and free. If there are any fees, these are typically a lot less costly than traditional methods.
Remittance statistics
The United States is the leading source of remittance to these different countries. World Bank statistics show that in 2017, over 68 billion dollars was remitted by individuals to certain low and middle-income nations. Most of the funds came from those who work in the US and sent to their families back home.
This year’s estimated amount of remittances using various payment methods from developed nations to the countries that are less wealthy is about 550 billion dollars. Out of this amount, because of the international money transfer transaction costs that average at about 7%, around 38.5 billion dollars will be spent on explicit fees and the exchange rates.
Roughly translated to a personal transaction, if you are sending $100 overseas, you would have to pay at least 7 dollars for the remittance fee. For that transaction, there will be an exchange rate applied if the recipient will cash out in another currency. This exchange rate might be lower than that of the prevailing market price. Through the banking system, the funds will take at least three to five working days to arrive.
Online payment transactions advantages
When you send or receive money online, you don’t carry around cash and worry about being robbed. There is no need to wait in line, as you can access a money services app with your mobile device. At any time, from anywhere you are, with the touch of your fingertips.
Factor in the costs
Among the different methods of sending funds, the best choice depends on the requirements of both you and the recipient. However, you still have to factor the cost. If you are making a local bank payment transaction, if it is inter-branch, there might be no fees. Some payment services that allow monetary gifts to be sent locally without fees.
Save more than money
There are a limited number of remittance options, and if you are the one sending the money, it is wise to no longer pay for transaction fees, or at least, cut down the cost. If you count the cost, aside from what is measurable by dollars and cents, time may also be measured, but once spent, it can not be bought back. The effort also falls under the bracket of cost. If you have to exert any effort for what doesn’t have to be done, it is a waste.
Send money for free
The multiple services app also works like an e-wallet. What is required is for both the sender and the recipient to have the money services company’s app. Then, money can be sent for free. The amount will be reflected in the account of the recipient nearly instantly. If you want to remit money locally and internationally for free, the way to do so is by using this money services company’s app.