How to Save Money When Sending Wire Transfers

A wire transfer is one of the easiest ways of sending money to family and friends. However, it may come with additional costs, weighing heavily on your budget. These transaction fees can differ depending on the bank or payment system you use. Most importantly, they can help you save money.

There are many cheap ways to make a wire transfer, including using services like Paxum. So, how does that work? Read on to find out everything you need to know about convenient wire transfer services!

How Much Does a Wire Transfer Cost?

The answer to this question is not as straightforward as one might hope. The truth is that the fees for a wire transfer can depend on several factors, such as:

  • Whether you send or receive the funds
  • The amount you are sending or receiving
  • Whether it is a local or an international transfer
  • The bank or payment processor you are using
  • International wire transfer policies and regulations
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The Hidden Costs of Wire Transfers

Different banks practice different fees. Therefore, you should check ahead with other banks before committing to a wire transfer. Also, make sure that the receiver is aware of the transfer fees involved. Some banks charge a commission to the receiver as well.

Do your due diligence and find out how the bank you have chosen will process your transfer. For example, some banks use third parties or intermediaries when processing wire transfer requests. The more middlemen they use, the costlier the transaction fees will be. So, ensure that your bank uses as few or no intermediaries if possible.

How to Save Money when Sending Wire Transfers

Just because wire transfers are fast and easy, it doesn’t mean you should pay exorbitant transaction fees. Here are a few ways of saving some money and cutting costs on wire transfers:

Use Online Payment Processors

Instead of using the traditional phone method, you can go online and use a payment processor for your wire transfer. This method saves you the fees you would pay for a phone call.

Convert Your Money before Sending It

Suppose you are about to send money to a country using a different currency. In that case, you should exchange your funds for that specific currency. For instance, if you are sending money to a country in the European Union from the US, you should first exchange your USD for EURO. Most banks charge smaller fees if the funds are already converted into the destination country’s currency.

Do Not Open New Accounts

Some banks require clients to open new accounts or unlock new features to their existing accounts to send wire transfers. Unfortunately, this practice is not illegal but may include additional costs. If that happens to you, talk to the bank manager to avoid paying extra for this service.

Check for Loyalty Programs

If you have had the same bank account for many years, you may be eligible for a loyalty program. Talk to your bank and find out if this can help you cut some of the costs of sending wire transfers.