Thanks to the wonders of modernization and technology, we have witnessed an influx of different financial service apps emerging in the market. They promise to help you send money not just locally, but also abroad. Some even give lucrative and mouth-watering deals to lure more customers. But one thing that the consumer forgets when using a money transfer app is to check on fees – especially hidden ones. A decent money transfer app should be clear and open from the beginning.
Technology has made our world a global village, literally. And this is why our expenses, and indeed income doesn’t have to be limited to the country we currently reside in. Apps such as those we use to transfer money have made the game change. We can transact to and from any part of the world. Therefore, the need for a more reliable and user-friendly money transfer app has become an urgent matter in people’s lives. Several financial app startups are already giving people different options from conventional banking. And the thing is that most of them either help with the main problem facing financial apps, or not. And the problem is hidden fees. These hidden charges can make money transfer too exorbitant. And that’s why we are here to point them out.
International monetary transfers normally take place through the SWIFT network. This is a worldwide system that links banks. The name might make you think that the transactions are always swift, which isn’t usually the case. If anything, it is beset with different issues that make it not perform as supposed to. And one main challenge is this one here – correspondent fees.
How do these fees come through? Well, banks don’t usually have their operations and facilities in all countries. Hence, the need to use correspondent banks in the countries where the transaction goes to. These banks are at liberty to deduct fees that they term as correspondent fees. The problem here is that they don’t ask for your permission when doing so. In any case, these fees are even difficult to predict. The best way to avoid such fees is by using a credible money transfer app that gives you a breakdown of all of the fees beforehand, including if there are any correspondent fees.
Neither you nor your bank can control these fees. Some financial institutions around the world charge recipients fees for receiving funds from abroad. And these fees vary depending on the bank, and they can’t be overturned. The best way to avoid this is to use a money transfer app instead. You’ll only have to pay a fairly decent commission and avoid recipient fees for your recipient. They will receive the full amounts that you send.
The current exchange rate that the bank displays for you isn’t, in most cases, similar to the current one on the forex market. And they mostly use this to take advantage of users and make an extra buck on your transfers. This is why you need to counter-check regularly with the current rates to see what you should expect. And when you see it, don’t settle for a financial service that doesn’t grant you fair forex market exchange rates. Because they might just be using this as a scapegoat to take more than they deserve from you.
Well, you can’t blame them for doing this, as everyone is in business. But at the very least, they should have some regulation when it comes to fees. At least, get a decent money transfer app that won’t charge you excessively or alter exchange rates.
How to Counter Hidden Fees Using a Money Transfer App
Banks have been a convenient way to transfer funds abroad. And we aren’t making an argument about that. However, if they are not working right for you in terms of the delivery time for funds, or even the charges that they associate with transactions, there are other options on the table.
A money transfer app, for instance, can be a great option that you can use to make transfers globally without having to part with extra funds in the form of hidden fees. While there are so many money transfer apps in the market, you need to focus on just one with the best rates and features. Other factors aside from the transparency in fees to look out for include:
Security – it is imperative that you pick a money transfer app with high-tech. In the age of advanced technologies, there are both advantages and disadvantages. As technology has made it easier for us to transact funds online, it has also made it easier for cybercriminals to rob people of their hard-earned funds.
Features – what extra features does the app have that other platforms don’t have? This is one factor to consider too.
Now that you’ve seen the hidden fees associated with international transfers, it’s only wise to get a money transfer app with no monkey business. We suggest picking Afriex, which has been in the industry and is continuing to innovate better services to enhance customer experience.