14 Aug 2024
According to a UN IOM report, over 13,000 Bangladeshis live in Germany. They earn a better living and send money to Bangladesh online from Germany to offer financial aid back home using different channels.
One of the biggest challenges you, as a Bengali expat, have to face in online money transfers is the fees that you pay. In several cases, the cost you pay on your international transactions is hidden. It means that your service provider does not show you the proper charges that the transaction will incur. This can be a grave financial challenge, given that you have gone abroad to earn a living and support your family financially. This blog guides you on how to avoid hidden fees in your transactions.
The World Bank has said that the lack of transparency in the international remittances market has often led customers to pay more than they should. This is a direct reference to the presence of hidden charges your service provider applies when you transfer funds.
The most common modus operandi of some of the service providers is that they will not inform you about the service charges that the transaction will incur. They will proceed with the transaction and then notify you about the total charges once the transaction reaches a point where it cannot be aborted, canceled or reversed.
Here, you cannot do anything but pay whatever the service provider asks you. Therefore, the next time you send money online to Bangladesh from Germany to offer financial support, keep the following tips in mind:
· Avoid hidden charges
· Add more to the amount you send back home
· Clinch cost-effective online money transfer deals
Technology has made it easy for service providers to offer you an extended range of options while sending money. If you select any service provider, including banks, you will realize that they offer you several options for your transactions.
These options include payment through a Debit card, Credit card, or simple bank account transaction. Even certain service providers specialize only in online remittances. Each method has a different mechanism for charging fees. Therefore, you must know how fees are applied in each of the methods before selecting one and proceeding with it.
With different methods for online money transfers to choose from, you also need to select the right service provider. As mentioned earlier, you can choose a bank, an online remittance service provider specializing in these operations or any other financial institution.
However, keep in mind that each of these institutions has a different fee mechanism. How these institutions charge fees depends on the type of service they offer. Therefore, learn about their fee structures and see which corresponds to your online remittance needs before proceeding.
One of the simplest ways to beat hidden charges on your online money transfers is to compare the services of different service providers. When you begin comparing services, the first area you emphasize is the service charges. Additionally, consider the exchange rates offered by each provider to ensure you get the best overall deal.
Analyze how different service providers charge fees and which calculations they use to apply fees. A brief comparison between a select few service providers will make you realize where the problem lies. It will make it easier for you to a) ward off hidden fees and b) choose the company that offers you a cost-effective deal.
You should negotiate how your service provider applies fees instead of initiating a money transfer from Germany to Bangladesh. This simple conversation with your service provider about their fee structure will reveal many things.
But remember one point when you are negotiating fees. A genuine service provider will openly discuss everything regarding fees with you. They will answer your questions to your optimal satisfaction. You will realize that they are not trying to run away from your questions and concerns.
An unscrupulous service provider, however, will try to apply evasive tactics instead of answering your questions straight. Instead of answering questions, they will try to trick you into initiating a transaction quickly as if a delay will cause a huge financial loss for you.
Despite your efforts to determine whether a service provider applies hidden fees or not, the chances of paying more than you should always exist. For example, if a service provider does not apply hidden fees to the service charges, they might trick you into paying more in currency exchange rates or currency conversions. If this is the case, then you are vulnerable to paying more.
In such a scenario, you must avoid making several transactions at a given time. Therefore, the best way to beat hidden charges is to schedule your transactions at suitable intervals. But does it merit mentioning again that this step comes after you have followed all the steps explained above?
Another critically important area where you can end up paying more on your international money transfers is the currency exchange rates. Does it need to be said that the financial health of an online remittance transfer from one country to another is anchored in the exchange rates?
Learn everything about the role of currency exchange rates HERE.
If you get competitive currency exchange rates, you can expect to be delivering a relatively larger amount compared with the amount with uncompetitive rates. Always remember that currency exchange rates are of the following two types:
· Static and fixed
· Live and flexible
Fixed rates are usually offered by the banks. Live rates, on the other hand, are offered by certain service providers that have linked them with the international market, where these rates keep fluctuating. These rates can compensate you for the fees you pay.
Several remittance transfer service providers will offer you discounts and also launch promotional campaigns. You must look and wait for such discount offers and promotional campaigns.
But remember that these campaigns are launched for a short time and end soon. Therefore, keep an eye on these. One of the most significant advantages of joining these campaigns is that you can get to transfer funds without having to pay even a single penny. Therefore, if the fees are not applied in the first place, where would the question of hidden fees arise from? Wouldn’t you agree?
As mentioned earlier, when you send money to Bangladesh from Germany you must choose the right service provider. The ways and methods a service provider offers you to transfer funds come at a later stage.
But before choosing the right service provider, you must first determine your online money transfer needs, draw comparisons between the services of financial institutions, and then select one. Remember that finding a service provider offering you live and market-competitive currency exchange rates can help you compensate for the fees you have paid. In addition, joining a promotional campaign to transfer funds can keep you away from the fees in the first place, let alone hidden charges!
A hidden fee is a type of fee that is applied without being notified to the customer. This is not only applied to online money transfers but in other fields too. But in the remittance industry, its incidence is higher than elsewhere because here most customers are unaware of this fee type and rather focus more on other issues like speed, safety, exchange rates, and so on.
The hidden fee is applied to your international money transfers discreetly. The most common modus operandi to apply a hidden fee is to not tell you anything about it at the time of initiating a transaction. You get to know about the hidden charges only after the transaction reaches a point where it cannot be cancelled or reversed.
Although hidden charges are pretty heavy financially, they can be beaten easily, if you follow a few simple tips. For example, choose the right service provider, select the right method, negotiate fee structure, draw comparisons between service providers, look for discounts and promotions, avoid multiple transactions, and understand the role of exchange rates.
The role of currency exchange rates in your online money transfers cannot be overemphasized. The fact that you send money from abroad back home in a foreign currency makes its role more critical. Therefore, you must understand the role of currency exchange rates and try to find a service provider that offers you live and market-competitive currency exchange rates that can compensate for the fees you pay.
You can secure a cost-effective online money transfer deal by finding the right service provider and choosing the right method to send money online. Remember two things in addition to this: one is to find live and market-competitive currency exchange rates, and two, look for promotional campaigns in which the fee is waived in the first place.
Resource(s)
· Bangladeshis in Germany
