If you plan to start a business in Ukraine or have freelance employees working in the country, you will have to transfer money on a regular basis.
Some of the most popular money transfer services operate in the European country but their conditions aren’t necessarily the best ones. The following tables reveal the most accessible services that will cost you less in comparison to your bank’s money transfer fees.
Skrill has been reported as an alternative payment method for Ukraine. Although it is tested, some people report problems with money withdrawals.
Here is a short guide on how to use Skrill for money transfers:
|Table 1 – Sending $1000 from the US to Ukraine|
|Transfer Method||Stated fees to send $1000 USD||Hidden currency conversion cost||Total cost||Time for the transfer to arrive|
|Ria Money Transfer (slow)||$5||$0||$5||3-5 days|
|Western Union (slow)||$12||$0||$12||3-5 days|
|Moneygram (slow)||$12||$0||$12||3-5 days|
|Ria Money Transfer (fast)||$15||$0||$15||Minutes|
|Wise, formerly TransferWise||$20||$0||$20||1-2 days|
|Western Union (fast)||$48||$0||$48||Minutes|
|Wire transfer||$25-55||$10-30||$35-85||3-5 days|
|Table 2: The TOTAL Cost including HIDDEN currency exchange fees for sending money from different countries to the Ukraine|
|Transfer Method||Receiving Currency Option||From the US||From the UK||From Canada||From Western Europe||From Australia|
|Ria Money Transfer||USD||0.5%||Not available||Not available||Not available||Not available|
|Small World FS||EUR||Not available||7%||Not available||0%||Not available|
|Xendpay||EUR||Not available||0%||2.6%||Not available||2.6%|
|Wise, formerly TransferWise||USD & EUR||2%||2%||2%||2%||2%|
|Exchange4free||USD & EUR||Not available||3%||3%||0%||3%|
|Payoneer||USD||3.1%||Not available||Not available||Not available||Not available|
|Western Union||USD & EUR||1.2%||3%||6.7%||1.9%||9.9%|
|Azimo||USD||Not available||3.2%||Not available||3.2%||Not available|
|Send Money 24||USD||Not available||7.7%||Not available||Not available||Not available|
|Moneygram||USD & EUR||1.2%||9.3%||7.8%||3%||9.6%|
|Wire transfer||USD Only||2.5-5.5%||2-4.5%||2.5-5.5%||2-4.5%||3-6.5%|
Ukraine’s government has instituted Foreign Exchange Controls.
Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents. Often, foreign exchange controls can result in the creation of black markets to exchange the weaker currency for stronger currencies.
This leads to a situation where the exchange rate for the foreign currency is much higher than the rate set by the government, and therefore creates a shadow currency exchange market.
The official rate was UAH 15.77/USD as of Dec 16, 2014. The interbank rate was at UAH 16.0–16.25/USD, and the black market rate exceeded UAH 20/USD.
This means that if you exchange money via a bank the currency exchange rates will be significantly worse than receiving money in USD for example and then exchanging via the black market.
Transferring Money with Wise (formerly TransferWise)
How to Send Money to Romania at a Much Better Exchange Rate than your Bank
How to Send Money to Serbia with Less Fees
3 Ways to Send Money to Bulgaria that are Cheaper than using a Bank
Rob Rawson is a co-founder of Time Doctor which is software to improve work productivity and help keep track of what your team is working on, even when working remotely.