6 August 2019
Transaction fees: Paying over the odds
Nobody likes paying over the odds to send or receive money. It doesn’t matter if you’re sending money to a friend or processing an invoice - sending money overseas can often leave you at the mercy of banks and exchange bureaus who make a tidy profit out of fees for overseas payments. It’s not just the hassle of waiting in a queue to make your payment, either. Often an international payment can take days to arrive in a recipient’s account.
What are transactions fees?
Sending funds to someone in another country will often incur a transaction fee. This will vary from bank to bank, and can also depend on whether you’re making the transfer online or in-branch. Either way, you’re essentially paying an “admin fee” for the privilege of moving your money abroad.
Banking on transparency
The sender’s fee isn’t necessarily the only one involved in an international transfer, either. Some local banks will charge the recipient to allow them to receive payments from abroad. Any extra charges in a transfer are the result of the account agreement between the sender and receiver’s bank. This means that before making an international payment via money transfer services like Paysend it’s always a good idea to check your bank account terms and conditions, as well as how the receiver’s bank will handle the transaction.
Any extra charges that are applied are down to agreements between banks and their clients only, not between banks and money transfer services. Fees for international payments can pile up, adding to the cost of sending money overseas, so it’s good to check before you send.
What exchange rate will you get?
In an ideal world you’d get the mid-market rate - the one without any fees or commissions added. However, if you’ve ever compared the midmarket rate to what your bank is offering you’ll know that they’re likely to have added a margin. This comes directly out of your pocket - or your recipient’s. Finding the best rate can involve a lot of leg-work for very little reward.
How Paysend can help you
Paysend helps you cut out rip-off-rates and unfair transaction fees.
Paysend transactions are classified as a money transfer by international payment systems such as Visa and MasterCard. Sending money with Paysend is easy - login via the app, enter the account number and name of your recipient. You’ll be able to see our fee in our calculator, so once you’ve checked with your bank to find out if there will be any fees for the recipient, you’re good to go. The rate you see is the rate you’ll get - the midmarket rate - and it’ll stay fixed for the duration of the transfer. You’ll be able to instantly transfer money to over 70 countries for just £1. And you won’t have to queue at your bank, or wait days for it to be processed.
Speed, security and simplicity aren’t the only benefits - you’ll find that Paysend’s low transfer fees and reasonable exchange rates make your money go further, too.