14 Nov 2024
Are you one of the 1.4 million expats working in Belgium who need to make a money transfer to your home country regularly? Then, keep reading this blog to learn how to save on remittance sending costs.
Here are some essential factors you should know about remittances before you initiate your transaction.
The transaction size, payment method, transfer destination, and current currency rates are some of the variables that might affect the costs associated with cross-border transfers.
Some providers charge a percentage of the entire amount; thus, the size of the remittance may impact the price.
The service provider can impose fixed costs to perform the transaction. The exchange rate margin is the difference between the market exchange rate and the rate that consumers are provided.
Costs may differ depending on the remittance method, cash transfers, digital money transfer platforms or services, or the bank.
There may be extra fees for quick transactions.
Here are some of the common challenges that almost every expat faces when they send money to their loved ones.
Money travels through several institutions, services, and checks to ensure compliance with Know Your Customer and anti-money laundering regulations, which may incur a cost.
The value of the money being transferred may decrease due to fluctuating exchange rates.
Every nation has its own regulatory bodies and mechanisms in place to safeguard customers and their data, prevent fraud, and prevent illicit activities involving cross-border transfers. Complying with international rules and regulations can be difficult and expensive.
Many developing nations experience delays even though Belgium has successfully adopted real-time cross-border payment systems.
Many expatriates send money home to family and friends during their employment overseas, which is a relatively normal practice. Here are five useful techniques for minimizing remittance costs.
There are many money-transfer services; however, they are not of the same quality. Some may offer great transfer fee rates but with poor exchange rates, whereas others may have fairly better exchange rates, but the transfer fees would be high enough. It’s best to look at all features before you request a transfer. Over the long run, switching to the service with the lowest fees and the highest exchange rates can be very fiscally prudent.
Using mid-level services of traditional banks, which are suitable for people undergoing transfer transactions, may increase the cost if combined with other currencies or other intermediate transactions. Also, companies such as ACE Money Transfer charge relatively lower costs for their services as they do not maintain the high costs associated with overhead staff and bank-based offices. Technology has provided a solution; this platform lets you make a global money transfer from your computer or phone at the most incredible convenience.
If you regularly transfer small amounts, a transaction fee can cost you a lot where it shouldn’t. Many services offer a single fee for every transfer, meaning that infrequent larger transfers will be more economical. Looking ahead and sending several transfers more efficiently will reduce the fees, allowing you to pay only once, and your payee will get a more considerable amount in total.
Cash pickup is perhaps the easiest method, but its cost is a little excessive. Where circumstances permit, transferring to bank accounts or mobile wallets will prove to be more cost-effective. Sending money has become a bit easier, with these methods being cheaper for senders, as the recipient doesn't have to physically visit a remittance center to withdraw the money.
Almost every money transfer service offers a promotion. These promotions may range from zero-fee transfers to discounted prices but are available for a limited period. It is advisable to register with the remittance service of your choice and subscribe to its newsletter to receive notifications about such offers. It is always smart to take advantage of these discounts, as they can help reduce the cost of sending funds overseas.
Even the challenges can not stop you now from supporting your loved ones back home. Follow these tips and become a pro at sending remittances at the most affordable costs. Sign up on ACE today to send money online with the lowest rates, quickest speed, and best customer service.
Yes, look for services that offer competitive exchange rates close to the market rate.
Most mobile wallets have clear fee structures but always check for additional charges like withdrawal fees.
Yes, express or urgent transfers often incur higher fees than standard options.
Seasonal promotions can significantly lower fees, so staying updated and taking advantage of them is smart.
Sometimes, sending in euros might reduce conversion fees, depending on the recipient's country and service used.
