How to cut wire transfer costs
Whether you need to send a one-off wire or have to send money to a friend on a regular basis, there are ways you can cut your wire transfer costs.
Avoid the SWIFT system
Almost half of all international cross-border payments take place through the SWIFT network. This makes the SWIFT system critical to the global economy. It is a network of nearly 11,000 financial institutions that handles millions of daily payment instructions across more than 200 countries.
The biggest cost of a SWIFT transfer is the exchange rate. Depending on the currency being sent, the exchange rate can cost 3% to 5% of the amount transferred. This makes a SWIFT transfer one of the most expensive ways to transfer money internationally.
Some financial institutions offer recurring wire transfers for a lower fee. However, it takes longer to complete a transfer through these alternatives. Often, it takes an additional day or two to process a transfer through an alternative.
In addition, a SWIFT transfer can take as many as five working days to complete. This is because there are multiple factors that can affect the processing time of a transfer. These factors include bank holidays and the time of year. In addition, the exchange rate fluctuates daily.
Set up recurring wires
Creating a batch of wires can save you a bundle on your transfer fees. This type of process allows you to create a batch of wires that are bundled together into one giant transaction.
There are some tradeoffs associated with these types of transactions. You may be paying a premium for this service but you can rest assured that your funds are in your hands within 24 hours. If you are looking for a way to send money overseas, you may want to consider a foreign currency exchange (FCX) service such as Fedwire. You will be hard pressed to find a better deal.
While you are at it, you may also want to check out wirefox, a mobile app that allows you to manage your wires anywhere. This is particularly useful if you travel frequently and have multiple accounts at different institutions.
Add a wire recipient
Adding a wire recipient to cut wire transfer costs is not always as simple as adding a contact to a phone book. In some cases, you will need to provide additional information such as a recipient’s bank account number, IBAN code, and branch number.
It’s also important to choose a reputable financial institution to send money. You want to make sure that the money goes to the right person, and that the process is safe and secure. You also want to find a service that has the lowest wire transfer cost.
To see how much your wire transfer costs, visit the Western Union website. You can see the expected transfer cost and how long it will take to receive funds.
You may also want to consider a transfer service like Zelle. This service allows you to send money quickly without the fees associated with traditional wire transfers.
Avoid high markups
Using a wire transfer to move money from point A to point B is a rite of passage for many a cash strapped consumer. To make matters worse, the banks are in lockstep, and the powers that be are not particularly interested in consumer etiquette. Fortunately, the aforementioned petty bureaucracy can be averted with a little know how and a fair amount of wiggle room. The secret to success lies in a combination of hardwired and remote control security. The best part is, it’s free. To test your mettle, you’ll need to decide which bank to go with, and you’ll have to make the requisite selections.
Whether you’re sending money to a friend, family member or business partner, you need to know how to avoid wire transfer scams. The best way to avoid these scams is to learn about them and understand the signs.
One of the most common types of scams is an investment scam. These scams promise to give you large returns without risking any of your own money. The bogus ads that these scammers post are often very convincing. They also often come with a warranty.
Another type of scam is an overpayment scam. These scams are often targeted by online vendors or small businesses. They will send you a fake check to cover shipping costs or processing fees. These checks can take weeks to detect and are usually accompanied by a demand for repayment.