How To Consider Various Cost Factors For Wire Transfer in 5 Simple Ways

It should be understood that there is not a single money-transfer method that is cheaper or simpler than any other methods available in the market, something that most of the people search when they want to send money overseas. It is vital to consider all the options before you send or receive via foreign countries.

Here are the 5 important things that you should contemplate while selecting a wire transfer method that would reduce the costs associated with money transfer and maximize the amount of currency delivered.

1. Bank Account: The first thing that you need to think about is that the bank or the financial account that you have, provides low-priced or free foreign wire transfer. For instance, if the transaction is taking place between the accounts of the same bank, some banks may waive off the money-transfer charge. Citibank, based in the United States, has its branches all around the world, and it allows free wire transfers between Citibank U.S and non-U.S. Accounts.

If you are looking to send money to Italy, you may find it worthwhile to open an account in the same bank in your region where the recipient or the sender hold the account in Italy. Some online payment methods, such as PayPal could also be a quick and an inexpensive way to send money internationally, if both the parties agree with this option.

2. Wire transfer fees: Wire transfer fees depend on the money-transfer service providers, and is one of the two important factors that contribute to the total cost of the transfer transaction. The average fee for all outgoing wire transfers charged by the 10 largest U.S. banks is $47.50, ranging from $40 at Citibank and TD Bank, to $65 per transaction at BB&T, as per the analysis by MyBankTracker.com in the month of April. You may be lured towards the bank that has the lowest transfer fee. The fact is that most of the people determine the bank on the basis of this criteria only, however the fee is not the only determinant while deciding the cheapest method to wire money.

3. Exchange rate: The second vital element to consider is the exchange rate. However, it may be a difficult task to determine the most appealing rate as it keeps on fluctuating.There is a misconception that the exchange rate is the same across all financial institutions. This had resulted into many financial institutions making a lot of money from the unaware customers. In order to prohibit this unfair means of accumulating public money and to make the process transparent, the federal consumer protection regulation was introduced in February 2013 in order to make sure that the exchange rate is handled and presented clearly to the customers in US. The exact rate that will be applied to your transactions is not disclosed until you perform the wire transfer, but the information will be available to you before the transaction is completed.

4. Transfer amount: One more important determinant is the amount that you are looking to wire and how much payment the service demands. Each provider have their own rules regarding the transfer of various amounts. For instance, bank wire transfers could be beneficial for the transfer of large amount of money that ranges from $1000 to $5000, as banks will charge a flat fee.

Also, there are certain money transferring services like the MoneyGram and Western Union that charge you on the basis of the amount that you send. It means the more you send, the more you will pay. Thus, smaller transfers like those below $1000 will be a cheaper option.

Customers should beware of money transfer services that try to garner the attention by promoting extremely low transfer fees for large amount of transfer. It may seem to be tempting initially, but you may end up paying other extra charges like the high exchange rates while transferring thousands of dollars.

5. Method of payment and delivery time: One more thing to consider for how much you will have to pay for wire transfer is the delivery time. Just as in case of overnight shipping, immediate transfers and delivery are also more costly than the regular ones. How much you will choose to pay for the transfer will also directly affect the delivery time. For instance, if you are looking to pay with a debit or a credit card to transfer an amount will wire the funds immediately, however it will also cost the most in comparison to the other forms of payment.