Whether you are a business owner paying overseas suppliers or an individual seeking to purchase property abroad, transferring funds to a foreign bank account is something that many of us will be required to do at one time or another. But are you getting the right value for your transfers or just as important, the right support when you need it?
Fast moving currency markets and hidden money transfer costs can cause problems when it comes to exchanging money and sending funds overseas. Make sure you transfer money in the most effective way possible by following our guide to sending money abroad quickly, securely and at the right price.
Transferring funds overseas: Cost
Many people transfer money to a foreign bank account via a high street bank. This can be a costly method however as you may be hit with excessive charges by both the sending and receiving banks.
The interbank rate is the rate at which banks buy and sell foreign exchange to each other. This rate is not accessible to the public and high street banks will add a percentage to this rate to make up its margin. High street banks will also usually charge high fees for an overseas transfer.
It is not uncommon for banks to charge between €10-€20 more than a payments company like Fexco for a wire transfer between Ireland or the UK and an overseas bank account. If you make regular payments as an individual or a business, these charges could cumulatively add up to thousands overspent each year as a result of unnecessary fees and poor rates.
In a 2015 study by consumer watchdog Which? It was revealed that someone transferring £10,000 worth of euros overseas could pay up to €400 in additional fees by using an uncompetitive provider to facilitate the transaction.
The research, which was carried out over 2 months, tracked the cost of sending euros and US dollars overseas with 16 providers, 8 of which were high street banks
Speaking on the findings which also involved the transfer of dollars, Which commented;
“Perhaps unsurprisingly, the eight banks were bottom of our rankings for both euros and US dollars.”
This underlines the dilemma facing many customers , unaware of the competitive rates and fees offered by payment providers, who are still using high street banks to transfer money to overseas bank accounts.
Below is just one example of how Fexco makes savings on international payments for its customers:
“Since we started working with Fexco our transaction costs are lower and we have reduced our exposure to exchange rate fluctuation. That has made a huge difference for us with savings of more than €11,000 on fees alone”
Brendan Gillen, Finance Operations Controller, Dublin City University
Fexco is upfront about fees and rates, providing complete transparency and confirmation to its customers before an overseas payment is even initiated.
Unlike banks, there are no nasty surprises in terms of unexpected fees for both the sender and receiver of the transaction.
Our team of payments specialists will advise on the best transfer option for you to ensure your funds are sent as cost effectively and securely as possible.
If you are purchasing a property overseas or making regular, large business payments, Fexco provides FX risk management services like forward contracts and rate alerts to reduce your exposure to fluctuating exchange rates.
Transferring money to an overseas account: Speed
Companies that specialise in overseas payments are generally faster at processing international money transfers than high street banks. This is because they specialise in currency exchange – it’s the only business they do.
If you have previously used a bank for cross border funds transfers, you will know how long the process can be. Delays from the sending and receiving banks and compliance checks can add an extra 2 days to the transfer process.
Fexco applies strict Anti-Money Laundering (AML) checks to all payments at the initiation stage of the transfer process, which reduces the chance of further delays at a later stage.
Everyone needs to know when their money will arrive. It is a basic cash flow concern for businesses as much as it is for a parent sending much needed funds to children overseas.
Fexco can automatically send confirmation emails to payees advising on payment details such as when the payment was initiated and its expected delivery date. This optional feature provides clients and payees with greater transparency into the transfer of funds process.
Need to make a same day payment? With Fexco’s direct credit facility, clients can send funds overseas within the same day subject to cut off times, chosen currencies and time zones. A team of dedicated payment specialists will advise on the fastest payment route from a number of Fexco product options.
What’s more, all payment data goes through automatic validation on the Fexco system, ensuring that bank details are accurate to allow for the successful completion of the payment.
Sending money to a foreign bank account: Support
If you have ever used a high street bank for an international money transfer or indeed for any other personal or business transactions, you will probably be familiar with how difficult it can be to contact an agent to address and solve an issue.
In a customer services survey report, Which? found that the top three complaints from customers are associated with the automated phone systems often used by high street banks, with 43% of customers saying they found it annoying, “being passed around” from department to department, 37% of people found off-putting and 35% of respondents angered by “annoying hold music”.
Sending funds abroad should be a seamless experience. Why settle for any of the above situations when it comes to something as important as your financial affairs.
When you sign up for a free, no obligation account with FEXCO, you will be assigned to a dedicated account manager who can be contacted directly by phone or email.
Furthermore, all customer queries are expertly handled by an in-house customer support team with real time query management capabilities to trace the status of international payments.
Don’t settle for never ending hold music and being passed around from department to department when there are more efficient and effective options in the market. Check out what our customers say about our support:
“Consistently better exchange rates, low fees and payments delivered on time. Any queries we have are answered in real time by a professional team – what more can we say – fantastic service all round”
Naseer Saeed, Value Foods Ltd, Dublin
When you are making an International money transfer for business or personal reasons, choose the best option for cost, speed and support. Contact our support team email@example.com or talk to us (Ireland: 1800 246 801 UK: 0800 840 2887) to get access to bank–beating FX rates and payment advice.