25 Jul 2024
Owing to a robust economy with a nominal GDP of $2.05 trillion and a GDP Per Capita income of $34,776.4, Italy is a big appeal for job-seeking Nepalese. They come to Italy, find jobs, earn a living and send money to Nepal from Italy to offer financial aid back home.
While there are several methods to transfer funds online nowadays, each offering different benefits, what do you strive to get from a particular method?
Have you ever given it a thought?
Yes, yes… Speed, safety, competitive currency exchange rates, safety, low service charges and all else you are thinking about are correct points.
But don’t you think it all boils down to cost-effectiveness?
It does, indeed.
But then, how do you decide which method is the most cost-effective?
Continue reading to get the fascinating details.
If you think a service is cost-effective because the provider projects their services this way, then, well…
You will have to rethink!
As an experiment, select 5 online remittance service providers just randomly and go to their official platforms.
The most common feature you will find everywhere is the tall claim that their services are the best in the remittance realm.
If you believe one, what wrong the other has done to you? Did you ever think?
You cannot do experiments with different service providers for your every money transfer from Italy to Nepal. Or can you?
But then what do you do?
You have to find the most cost-effective online money transfer service provider. Right?
Perish worries and take a look below!
The first step you need to take is to draw deep comparisons between the service features of different service providers.
But isn’t it a vague idea?
What to compare, you wonder?
Well, you must focus:
· Speed
· Fees
· Currency Exchange Rates
· Safety
Other features are also important, but the ones listed above add to the cost-effectiveness.
Let’s break these down one by one.
Choose a few service providers and try to understand how they charge the fee for online money transfers.
For example, if you select a bank, you will realize that these financial institutions charge a fixed fee. On the other hand, companies such as ACE Money Transfer will charge the fee as a small percentage of the amount being sent.
Also, check if they charge a hidden fee or keep their fee-charging mechanism transparent.
The other area you should be checking thoroughly is the delivery time.
Be alert here, as it is a tricky area.
Certain service providers will offer you a standard time ranging between 24 and 48 business hours!
No. Here, you are mistaken.
It is business hours. And how many hours does a working day consist of?
Right.
How often do you have to multiply these standard working hours to stretch these to 24 or 48 hours?
Some others, however, deliver funds anywhere worldwide within a day only.
You must understand the role of currency exchange rates to know the difference between different rate types.
Currency exchange rates are mainly:
· Static and fixed
· Flexible and live
Try to find a service provider that offers you live and flexible rates.
But remember that the banks never offer you live rates. Every bank offers you fixed and static rates.
Read More: Understanding the Role of Currency Exchange Rates in International Money Transfers
Usually, you are told to exercise caution while sending money online because online financial scams are actual.
But a service provider unable to offer you ironclad security will tell you this.
A company like ACE Money Transfer will guarantee you extreme safety and security of your funds and the transaction as a whole.
On top of all of this, certain service providers will ask you to pay extra for swift delivery and or additional safety, and so on. It will render them too costly for you.
Another area that either renders a service provider cost-effective or otherwise is legal and regulatory compliance.
You will realize that certain service providers will make you realize as if they are doing you a favor by ensuring compliance.
Why?
Because by doing this, they will be able to charge you extra.
Therefore, make sure to choose a service provider whose regulatory compliance does not burden you financially when you happen to send money online to Nepal from Italy.
Another important area you must know about is the tax implications.
This also falls under the category of legal and regulatory compliance.
Taxes are applied on online money transfers and the more considerable the amount, the higher the taxes.
Therefore, a few credible service providers like ACE Money Transfer encourage you to send small amounts so that the tax implications are less.
No is the simple and straight answer to this seemingly simple question.
However, this negative answer is augmented and backed by several reasons explained below.
· Banks take anywhere between 3 and 5 business days to deliver funds
· You will have to pay a fixed fee that is normally fairly high
· Banks will charge you a fee for currency conversions
· Banks always offer you fixed and static currency exchange rates
· The services of banks are time-bound as these financial institutions operate on fixed schedules before or after which their services are inaccessible
· Lastly, approaching banks is filled with commuting hazards and incurs costs
All of these factors render banks unfit for online money transfers.
The best alternative to banks for online money transfers is online remittance transfer service providers like ACE Money Transfer. Yes, you are right that it is due to the services these companies offer you.
But the underlying reason is that these companies specialise in remittance transfers only unlike banks that have integrated remittance transfers to their larger financial services.
Apart from this, remember that not every such company offers you similar services.
Therefore, carefully select the alternative for the purpose.
You will realize that ACE Money Transfer is the best alternative if you make an online money transfer from Italy to Nepal with it.
The firm has a broader service network and is available in over 100 countries worldwide, where it offers swift and safe online remittance transfer services.
The firm also offers you live and market-competitive currency exchange rates that will compensate you for a small amount you pay as fees for your money transfers.
But here is the catch!
ACE Money Transfer has set a specific limit for applying transaction fees. If the amount you are sending back reaches or crosses that threshold, the fee will apply, which will still be a small percentage of the amount you send.
But if your amount remains below that limit, you will likely enjoy as many fee-free transactions as possible.
A cost-effective method of transferring funds online is one in which you save money that you pay as fees and get market-competitive currency exchange rates. This method does not charge you for currency conversions and saves you from commuting long distances, which incurs costs.
You can quickly determine if an online money transfer method is cost-effective by checking how a service provider charges you fees, how swift a routine transaction is, what currency exchange rates you are offered, and how tight the security is. In addition, check if you are charged extra for additional speed and enhanced security.
No. Banks are not a cost-effective method of transferring funds because they take between 3 and 5 business days to deliver funds, offer uncompetitive exchange rates, charge for currency conversions, and charge a high transaction fee.
Although they claim to be cost-effective, not all online remittance transfer service providers are cost-effective. Only a few companies, such as ACE Money Transfer, offer the best services in all areas, such as speed, safety, exchange rates, etc. Others may charge a low fee but take an extended delivery time.
ACE Money Transfer is the most cost-effective way to transfer funds because the firm offers speed, live and market-competitive currency exchange rates, charges a low fee only if applicable, and offers absolute safety of funds and transactions.
