Sending money across borders has become a crucial part of life for many immigrants supporting family, investing in businesses, or simply managing their global finances. However, the process often comes with costs that can add up quickly. Understanding the fees involved in international money transfers can help you save money and choose the most cost-effective options.

In this guide, we’ll break down the various fees involved in sending money internationally, explain how to minimize them, and introduce Afriex as a smarter solution for your financial needs.

Types of Fees in International Money Transfers

1. Transfer Fees

Most money transfer services charge a flat or percentage-based fee for every transaction. This fee can vary depending on:

• The amount you’re sending.
• The destination country.
• The method of transfer (bank deposit, cash pickup, mobile wallet, etc.).

For example, sending $1,000 to Nigeria through traditional banks might cost $20–$50 in transfer fees alone.

2. Exchange Rate Markups

The exchange rate you see on Google or in the news is the mid-market rate, which is used by banks when trading currency. However, many money transfer services add a markup to this rate, which increases their profit but costs you more.

• Example: If the mid-market exchange rate for USD to NGN is 750, the provider may offer 735. This small difference can add up when transferring large amounts.

3. Intermediary Bank Fees

When using traditional banking systems for wire transfers, intermediary banks might process the payment before it reaches the recipient. These banks charge additional fees, which can range from $10 to $50, depending on the route the transfer takes.

4. Receiving Fees

Some services or banks charge fees for the recipient to access the money. For instance:

• Mobile wallet providers might deduct a small fee for withdrawals.
• Banks in the recipient’s country could charge for receiving international wire transfers.

5. Hidden Fees

Hidden fees are often embedded in the terms and conditions of money transfer services. Examples include:

• Monthly service charges for maintaining accounts.
• Inactivity fees if you don’t use the service regularly.

How to Minimize International Transfer Fees

Compare Providers

Research various transfer services and compare their fees, exchange rates, and delivery times. Online calculators offered by companies like Afriex can help you estimate the total cost of a transfer before proceeding.

Choose Transparent Platforms

Use services like Afriex, which prioritize transparency and offer competitive rates without hidden fees.

Use Global Accounts

Afriex’s Global Accounts let you create personal USD or EUR accounts. With these accounts, you can:

• Receive payments directly in foreign currencies.
• Avoid expensive conversion fees.
• Store money in multiple currencies for future use.

Avoid Intermediary Banks 

Whenever possible, use direct transfer methods like Afriex to avoid extra charges from intermediary banks.

Send Larger Amounts At Once

If fees are percentage-based, consolidating multiple transfers into one larger transaction can help reduce costs over time.

Why Choose Afriex for Your International Payments?

Afriex offers a seamless solution for African immigrants and entrepreneurs who need reliable, cost-effective ways to send and receive money globally.

With Afriex, you get:

• Global Accounts to manage your money like a local anywhere in the world.
• Low Fees, ensuring you save more on every transfer.
• Fast and Secure Transactions across 30+ countries.

Conclusion

Understanding the fees involved in sending money internationally empowers you to make smarter financial decisions. From transfer fees and exchange rate markups to hidden charges, knowing what to look for can save you significant amounts over time.

Afriex simplifies this process by offering transparent, low-cost, and fast international payments. Whether you’re sending money to family or managing a business, Afriex ensures that more of your hard-earned money stays with you.