How do you choose a bank or money transfer company when you send money abroad? Your choice is probably based on assessing charges and exchange rates.
If you work with a business partner in Brazil or often send money to a relative in the country, you should do a thorough examination of service fees – chances are that you’re not aware of their full scope. Some companies make lucrative promises but there’s more to the service than meets the eye.
Banks, online money transfer companies and other financial institutions make huge profits by having significant currency conversion charges. The hidden fee is the margin that they add to the exchange rate and that costs you a lot of money for a single transfer. The problem is that very often, you’re unaware of that hidden fee.
Let’s say you’re sending 1,000 dollars from the US to Brazil (Table 1) and choose Western Union (slow service). You’ll pay a five-dollar fee for the transaction and an eight-dollar hidden fee (as a result of the exchange rate), which adds to a total service charge of 13 dollars.
The tables bellow will help you familiarize yourself with taxes, hidden fees and the most common money transfer practices. Thus, next time you send money to Brazil from the US, UK, Western Europe or Australia, you’ll have a better idea about choosing the most cost-efficient service.
|Table 1: Sending $1000 from the US to Brazil|
|Transfer method||Fees to send $1000 USD||Hidden currency conversion cost||Total fees||Time for the transfer to arrive|
|Ria Money Transfer (slow)||$5||$2||$7||3-5 days|
|Ria Money Transfer (fast)||$8||$7||$15||In Minutes|
|Western Union (slow)||$5||$10||$15||4-6 days|
|Western Union (fast)||$20||$8||$28||In Minutes|
|Xoom (slow)||$5||$24||$29||1-3 days|
|Xoom (fast)||$10||$24||$34||In Minutes|
|Wire transfer||$25-40||$10-20||$35-60||3-5 days|
|MoneyGram (slow)||0$5||$36||$41||1-3 days|
|MoneyGram (fast)||$10||$36||$46||In Minutes|
WorldRemit allows to send a money transfer to selected countries from the following states: Alabama, Florida, Idaho, Indiana, Iowa, Kansas, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Carolina, South Dakota, Utah, Washington, West Virginia, Wisconsin, Wyoming, District of Columbia and Puerto Rico. However all states can send an airtime top-up. Moreover for confirmation please check your availability of your US state with Worldremit.
|Table 2: Sending £1000 from the UK to Brazil|
|Transfer method||Fees to send £1000 GBP||Hidden currency conversion cost||Total fees||Time for the transfer to arrive|
|Global Foreign Exchange||£0||£34||£34||3-5 days|
|Small World FS||£3||£34||£37||1-3 days|
|Western Union||£15||£24||£39||In Minutes|
|Wire transfer||£15-25||£10-30||£25-55||3-5 days|
|Table 3: Sending $1000 from the Canada to Brazil|
|Transfer method||Fees to send $1000 CAD||Hidden currency conversion cost||Total fees||Time for the transfer to arrive|
|Wire transfer||$25-40||$20-30||$45-75||3-5 days|
|Western Union (fast)||$40||$54||$94||In Minutes|
WorldRemit can only send 995 CAD from Canada to Mexico.
|Table 4: Sending €1000 from the Western Europe to the Brazil|
|Transfer method||Fees to send $1000 EUR||Hidden currency conversion cost||Total fees||Time for the transfer to arrive|
|Western Union (slow)||€16||€17||€33||1-2 days|
|Western Union (fast)||€16||€38||€54||In Minutes|
|Small World FS||€0||€58||€58||3-5 days|
|Wire transfer||€20-35||€20-40||€40-75||3-5 days|
|Table 5: Sending $1000 from the Australia to Brazil|
|Transfer method||Fees to send $1000 AUD||Hidden currency conversion cost||Total fees||Time for the transfer to arrive|
|Real Transfer||$5||$43||$48||2-4 days|
|Wire transfer||$25-35||$30-60||$55-95||3-5 days|
|Travel Money Oz||$0||$185||$185||3-5 days|