Money transfers to South America could be very expensive if you’re unaware of hidden conversion costs (and these are typical for numerous service providers).
There will be a significant difference in the charges that you’ll pay if you use your bank or some of the online payment systems. If you have to send money to Colombia from the US, add up to 100 dollars to the sum which you’re intending to transfer.
Some of the most popular transfer methods charge you two times and add up to the cost. There will be an upfront fee and a hidden currency exchange charge that can add up to a relatively big amount.
What transfer methods do we use at Time Doctor?
We have a remote team with people in 19 different countries around the world. The two transfer methods we use the most are:
- Payoneer – very convenient for sending and receiving. They are also one of the few methods that works to receive money in almost every country and the receiver can get their money on a debit card and withdraw from an ATM. They also have an option for direct transfer to the receiver’s bank account. They also have a $50 bonus if you receive more than $100 through this method.
- Wise, formerly Transferwise – very low cost and also a convenient method for transfers to most countries.
Take a look at the tables below to make your money transfers to Colombia more cost-efficient. You can see how much it will cost you to send money from the US, Canada, Australia and Europe to Colombia. The estimates are based on an international transfer of 1,000 dollars.
|Table 1 – Sending $1000 from the US to Colombia|
|Transfer Method||Stated fees to send $1000 USD||Hidden currency conversion cost||Total cost||Time for the transfer to arrive|
|Small World FS||$5||$17||$22||3-5 days|
|Ria Money Transfer (slow)||$5||$25||$30||3-5 days|
|Ria Money Transfer (fast)||$7||$25||$32||minutes|
|XE Trade||$0||$42||$42||3-5 days|
|Western Union (slow)||$8||$35||$43||3-5 days|
|MoneyGram (slow)||$5||$46||$51||3-5 days|
|Xoom (slow)||$5||$49||$54||3-5 days|
|Western Union (fast)||$20||$35||$55||minutes|
|Wire Transfer||$25 – 55||$10 – 30||$35 – 85||3-5 days|
Notes regarding this table:
- Worldremit is offering the money transferring services to only these following US states: Idaho, Michigan, Missouri, Montana, New Mexico, North Dakota, Oregon, South Carolina, Utah, Wisconsin and Washington DC (more States are coming soon).
- If you’re not sure what I mean by “hidden currency conversion” check out our explanation in this article.
- The fees for wire transfers are estimates and vary from bank to bank.
|Table 2: Sending money from Several Countries to Colombia. The Total Cost including Hidden Currency Exchange Fees.|
|Transfer Method||From the US||From the UK||From Canada||From Western Europe||From Australia|
|Sharemoney||1.4%||Not available||Not available||Not available||Not available|
|Small World FS||1.7%||4%||4.8%||5.1%||Not available|
|Azimo||Not available||3.1%||Not available||2.9%||Not available|
|Ria Money Transfer||3%||Not available||Not available||Not available||Not available|
|Payoneer||3.1%||Not available||Not available||Not available||Not available|
|Xoom||5.4%||Not available||Not available||Not available||Not available|
|Wire transfer||2.5 – 5.5%||2 – 4.5%||2.5 – 5.5%||2 – 4.5%||3 – 6.5%|
Notes regarding this table:
- Canada, Germany and Australia are offering only a fast Western Union Method, in which it transfers the Money in Minutes.
- All the Transfer methods which are marked as “Not Available” are currently unavailable.
In conclusion, if you need to send money to South America like we do, you will soon discover that it is quite expensive and also can be quite a hassle. These charts will help you save money and alert you to those hidden fees that are never hidden for very long.
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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.