The globalized commercial world we live in enables us to buy almost anything we desire from across the globe. However, this privilege comes at a price, which sometimes makes the purchase inconvenient. We are talking about the foreign transaction fees burning holes in your budget for every international purchase.
When transferring funds internationally, it takes at least three to five banking days to complete a bank-to-bank transaction. However, that’s not even the biggest problem. You risk spending a fortune on foreign transaction fees if you’re not using advanced electronic payment systems like Paxum. Here’s how to pay the least possible amount and save some money.
- Don’t use your bank cards directly
For most of us, using our bank cards is the first thing that comes to mind when paying for stuff. However, you should consider some viable, less costly alternatives when making a foreign transaction. For example, you should opt for a virtual e-wallet that saves time and money. This device can connect all your cards and accounts to one convenient dashboard. It still makes the purchase using your cards, but indirectly. This way, you pay smaller transaction fees.
- Always choose to pay in the local currency
When purchasing something online from another country, you should opt for the local currency. Otherwise, the bank will charge you extra for exchanging your funds into the appropriate sum and currency the merchant must receive. And, as you may already know, banks practice exchange rates that rarely are advantageous for their clients.
- Pay via wire transfers
A wire transfer is commonly known as an electronic method of sending funds from one person to another. Fortunately, many businesses worldwide accept this form of payment, which is fast, easy, and cost-effective. If you need to buy something from the other side of the world, a wire transfer could save you money on foreign transaction fees.
- Order cash through a broker or your bank
Always check with a broker before making an international payment in a foreign currency. Many financial organizations hold and might sell foreign currency at an affordable cost. In other words, they won’t try to trick you with ridiculous transaction fees.
If you find a broker selling the foreign currency you need, you can make an online order for that cash. Unfortunately, there is a significant downside to using these methods, it takes time. For example, you may have to wait up to a week to receive those funds. And, if we’re talking about substantial sums, you may have to wait up to three weeks. Therefore, this method is only viable when you are not in a hurry to transfer money abroad.
These are the easiest ways to save money on foreign transaction fees. It would be best if you analyzed their benefits before engaging in a cross-border money transfer. Generally, an innovative electronic payment system will help you find the best solution. Even if you’ll have to pay from your current accounts, at least use a cost-effective intermediary.