How to choose the best overseas remittance method? Learn about common fees and savings tips to achie

In today’s globalized world, overseas remittance has become an inevitable financial operation for many people. However, facing numerous remittance methods and various hidden fees, how to choose the best overseas remittance method and achieve optimal cost savings is a problem that everyone who needs cross-border transfer should pay attention to. This article will delve into how to choose the best overseas remittance method, analyze common fee components in detail, and share practical tips for cost savings to help you make cost-effective choices.

First, overseas remittance methods and their advantages and disadvantages

Understanding the advantages and disadvantages of each method is the first step when choosing an overseas remittance method. Here are several main overseas remittance methods and their characteristics.

Bank telegraphic transfer (SWIFT transfer)

Bank telegraphic transfer is a traditional and widely used way of remittance, usually conducted through the SWIFT network. The advantage of SWIFT transfer is that it is safe and reliable, suitable for large remittances, and can cover most countries and regions around the world. However, the handling fee of bank telegraphic transfer is relatively high, which may involve various fees such as telegram fees, intermediary bank fees, and payee bank fees. In addition, banks usually add hidden price differences to the exchange rate to profit from it, which is also an important part of the remittance cost.

Online payment platform

With the development of financial technology, online remittance platforms (such as Wise, PayPal, TransferWise, etc.) have gradually become a strong alternative to bank telegraphic transfers. These platforms usually offer more favorable exchange rates and transparent and lower transaction fees. For example, Wise uses the market intermediate exchange rate, avoiding the exchange rate difference of traditional banks. The operation of online platforms is convenient and fast, especially suitable for small or frequent cross-border transfers. However, these platforms may not have advantages over banks in terms of fees and restrictions for large transfers.

International money transfer companies

Remittance service companies such as Western Union and Huijin International Center (MoneyGram) are also common overseas remittance methods. These companies have extensive networks worldwide and are suitable for remittances without bank accounts. However, fees may be high and exchange rates are usually not as favorable as online platforms or bank telegraphic transfers.

Digital currency

This emerging remittance method has unique advantages. As a global multi-asset wallet that provides digital currency services, BiyaPay supports real-time exchange rate queries and exchanges for more than 20 legal currencies and more than 200 digital currencies (such as BTC and USDT). The digital exchange method is more convenient and not limited by borders. It is suitable for anywhere in the world and can be credited instantly without limit. However, it is a newcomer to the market and has limited service scope. It focuses on digital currency services and is suitable for people who have large transfer needs and a certain understanding of cryptocurrency. However, due to relying on digital currency services, the audience is relatively limited, and as an emerging brand, its popularity needs to be further improved.

Composition of overseas remittance fees

The cost structure of overseas remittance is quite complex. Understanding these costs helps to choose the most economical remittance method. The main costs include:

Telegraph fee : Banks charge a telegraph fee for cross-border telegraphic transfers over the SWIFT network, which is a flat fee, usually between $20 and $50.

Transit bank fees : In the process of fund transfer, it may be necessary to go through multiple transit banks, and each transit bank may charge a certain fee.

Receiving Bank Fees : Some receiving banks charge a fee, which is deducted when the funds arrive in the receiving account.

Exchange rate difference : The exchange rate provided by banks and remittance platforms is often higher than the middle market exchange rate, and this difference is the hidden cost that the remitter needs to pay.

Fees : Major banks, remittance platforms, and remittance service companies usually charge fixed or proportional fees. The fees for online platforms are usually as low as 0.5% -2%, while the fees for traditional banks may be higher.

Full arrival fee : If you want to ensure that the amount received by the recipient is not deducted by intermediate fees, you may need to pay a full arrival fee, which is usually charged as a percentage of the remittance amount.

How to save overseas remittance costs

After understanding the cost structure of overseas remittance, how to maximize savings on these costs? Here are some practical suggestions:

Choose the best remittance method Choose the most suitable remittance method based on the amount, frequency, and destination. For small or frequent remittances, online payment platforms are usually more cost-effective; while for large remittances, bank telegraphic transfer may be safer and more reliable, but be careful to choose a bank with a better exchange rate.

Compare exchange rates and fees Different remittance methods and platforms offer different exchange rates and fees. Use the remittance platform’s calculator to compare the total cost of different remittance methods, including all hidden fees, and choose the most cost-effective method.

Avoid peak remittances Remittances made during periods of high exchange rate fluctuations or peak banking hours (such as the end of the month or around holidays) may result in increased costs. Choosing to remit money when the exchange rate is more stable can help reduce costs.

Take advantage of promotions Some online payment platforms and international remittance companies will occasionally launch promotional activities with fee discounts or no fees. By paying attention to and utilizing these activities, remittance fees can be greatly reduced.

Estimated remittance time Plan the remittance time in advance to avoid choosing high-cost services that arrive quickly due to urgent remittances. For funds that are not urgent to arrive, you can choose regular arrival to save costs.

Using foreign exchange options and hedging tools For large remittances, financial instruments such as foreign exchange options can help lock in exchange rates, avoid risks caused by exchange rate fluctuations, and ensure the predictability of remittance costs.

Avoid multiple small transfers Multiple small remittances will accumulate higher handling fees. Combining multiple small remittances into one large remittance can effectively reduce handling fees.

Choose a free payment method Some banks and remittance platforms offer free collection services, especially for transfers within the same bank. Choosing this method can completely waive the recipient’s handling fees.

The best remittance options in different scenarios

According to different remittance needs and scenarios, choosing the appropriate remittance method can greatly optimize costs and efficiency.

Personal remittance If you are transferring money to family or friends, and the amount is small and frequent, choosing online platforms such as Wise is the best choice. The handling fee is low and the exchange rate is transparent. For larger amounts, you can consider bank telegraphic transfer and choose the best time for the exchange rate.

Corporate remittances Enterprises make cross-border payments, usually with large amounts and requiring quick arrival. At this time, bank telegraphic transfer may be the safest way. Enterprises can also use options or hedging tools to lock in exchange rates and avoid the impact of exchange rate fluctuations.

Study abroad remittance For the remittance of study abroad expenses, the amount is large and frequent. It is recommended to use bank telegraphic transfer or installment remittance services of online payment platforms to complete large payments at a lower cost. International students can use their parents’ bank accounts for remittance and choose a method with lower handling fees.

Investment remittances In cross-border investment, the amount of funds is usually large. At this time, you can consider using bank telegraphic transfer and BiyaPay, and choose the best remittance time according to the exchange rate trend. In addition, you can also consult the bank’s financial advisor to choose a suitable remittance plan.

Although overseas remittance is a complex and costly process, by choosing the appropriate remittance method, comparing fees and exchange rates, utilizing promotional activities, and planning the remittance time in advance, you can significantly reduce remittance costs and achieve cost-effective remittance operations.