Cross-border payments are great when you need to send money abroad, but did you know there are ways you can make them better? Here are some great tips that you can try to make your cross-border payments more efficient.
Choose the Right Transfer Service
One of the most important parts of making a cross-border payment efficient is to choose the right transfer service. There are many transfer services to choose from; banks, alternative payment platforms, payment centers, etc. However, these are not all made the same; they have different processing times, limits, rates, fees, etc. For instance, using payment methods like GlobePax is usually cheaper and quicker than banks, but banks are more “traditional.”
It will take some time to compare these payment platforms to choose the best one for you. Do not only think about the fees; think about the actual service. For instance, one international transfer service may offer quicker processing times than the other, and you may want to choose that one if you want the money to arrive at its destination immediately.
Watch Out for Fees
An important thing you must do to make the most out of your cross-border payments is to make sure that you watch out for the fees before you send out a payment. Keep a look out for any hidden fees that may be there; some payment services will sneakily add hidden fees before you send payments. It may take some time, but comparing various payment services after you find ones that cater to your needs can help you save a lot of money. For instance, PayPal tends to vary on its transfers, but it can range from 1-5%. However, Paxum may be the better option since it is usually cheaper and the payment processes are complete within the same time.
Keep an Eye of Exchange Rates
Cross-border payments normally involves exchange rate, and exchange rates can change drastically. One moment, your exchange rate is good and the recipient will receive a good amount of money. The next day however, it can suddenly drop down and the recipient loses out on money. You can try to see if there is a pattern on the exchange rates to find the best time to send money. Luckily, there are many apps that let you get notifications about the best exchange rate; that way, you will not have to stare at the exchange rates all day.
What Is the Cheapest Way to Send a Cross-Border Payment?
As mentioned earlier, there are many ways to make a cross-border payment, and each one will have different costs, processing times, limits, etc. Therefore, there is no specific “cheapest” cross-border payment service because the “cheapest” service may not suit your needs. Therefore, you will need to research the best price for your needs to find the best service for you.
Sending money abroad does not have to take forever or burn a hole in your pocket. You can try out any of the tips above to save yourself time and money whenever you make a cross-border payment.