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Transferring money overseas can be affordable if you know where to look, how to compare, and if you understand some of the basic fees that are associated with transferring money. There are a few different types of fees that are relatively universal across the board no matter which transfer service you use. Knowing a bit about these fees can help you decide what service is right for you.
Administrative and Processing Fees
The first and most basic fees you will run into are processing fees and fees associated with the administrative side of the business. These are generally nominal fees that are labeled as processing or simply “transfer fees” with the company that you choose. In most cases, these fees will not exceed $5-10 per transaction. These are put in place to help make the transfer worthwhile for the money transfer company. These fees help pay for the website, the time and effort put into the transfer, the customer support staff, and the overall transfer itself. These fees are going to be present in almost all money transfer service they may be called something else but they are fairly universal.
Currency Conversion Fees
Another type of fee that is only associated with sending money to a country that has a different type of currency than your own is the currency conversion fee. This again covers the cost to the money transfer service that is associated with changing the currency to the proper currency. In most cases, most money transfer sites will have a calculator so you can determine how much money is going to conversion fees and how much money is being sent to your loved one or to the person to whom you are transferring money to.
These fees are generally on the dollar fees, which means that they are placed on each dollar sent. In most cases, the company you choose will set a flat conversion rate that has the fee built in. Say you are sending money to Vietnam for instance. The site will give you the option of using the on site calculator to determine how much money is actually going to be given to the other party. The conversion rate for Vietnamese currency to US currency is currently set at 1 USD = 22336.39 Dong. Ideally, you want to get the most local currency for each dollar you send, so be sure to shop around and compare different companies to get the best deal. Some countries may not have conversion fees if they have the option of paying out in USD.
Fees Associated With Delivery Method
The last common fee type you might run into is fees are associated with the delivery method. This means any fees that are going to be charged by your bank, your recipient’s bank, or by the money transfer agency to assure a certain delivery method or time frame. In some cases companies will not charge for delivery methods but the potential to pay bank fees is still very real. In most cases, a direct wire transfer is going to be the fastest method but it may also have fees associated with it. A site like Sharemoney.com allows you to send money to the bank, to a designated pick up location, or directly to the door of your recipient making the entire process easier.
Knowing about fees is a good way to start your money sending process. If you have any questions about sending money overseas, talk to our customer service specialists today!
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