The Foolproof Way to Get a Good Deal on Money Transfers

Benchmark Your Exchange Rate

The first thing you need to know is that finding an exact exchange rate from the vendor will be difficult with some vendors. Many post the exchange rates, some by day and some in real time. The rates typically do change in real time, so the rate you see on the site might not be accurate.

So, to set an accurate benchmark you need an independent source. There are a variety you can use to compare as well. Google, CNN, and XE are all good places to start.

Benchmarking gives you a rough idea of your costs to transfer money overseas. This way, you can form a more accurate picture of which service is cheapest for you and your seller/buyer.

Have a Plan to Hold Your Money Elsewhere

Let’s say that your money has been authorized and shows up in your digital wallet, but the company closes overnight and you no longer have access to that wallet. How would you recover your money? Think it won’t happen? Part of being prepared is being prepared for the worst.

Have a contingency plan to move your money to an external account. While it’s not your responsibility, it’s nice to also let the recipient know to do the same. This is just added protection, but digital wallets also typically don’t provide interest. A brick and mortar or digital bank might, thereby helping you compound the interest on any money received.

Consider Using Cards from the Providers

Occasionally, digital wallet providers will make bank transfers take a long time or charge a small fee. This is not ideal. In these situations, you should do some searching to see if your provider offers usage of their proprietary credit/debit card. This way, you can apply for a plastic card usable in stores around you that is tied to your digital wallet.

You should still move money to an external account, but having plastic gives you some buying power in your local area. You might even be able to withdraw cash directly from your account. Just be wary of fees for using ATMs, and see if there are any brands of ATM you can use without incurring fees.

Final Thoughts

International money transfers are par for the course when you freelance or deal with contractors. Saving money on the transfer is a good way to encourage your contractors to stay loyal, since they know you pay quickly and without too many fees.

Photo: New to USA

Alexa Mason

Alexa Mason is a freelance writer and internet entrepreneur. She is also a parent to two beautiful little girls. She chronicles her journey as a single mom working on building financial security.