Ever experienced that frustration when you send money to clients abroad, only to find a chunk of it mysteriously vanished from your account? If this scenario sounds all too familiar, you're in for a treat.
Saving money on cross-border transfer fees is key to financial success. These fees can be confusing and change a lot, but don't worry – we've got tips to make it easy. Keep reading to learn how to save on cross-border transfers.
What is a Cross Border Fee?
A cross-border fee is a charge imposed by financial institutions, such as banks, payment processors, or money transfer services. It is the facilitation fee for the movement of funds between different countries. In simple terms, it is the fee levied on transactions that involve transferring money from one country to another, whether for personal, business, or investment purposes.
How Much Are Cross-Border Fees?
Cross-border fees vary widely depending on various factors. It is determined by the financial institutions, countries in question, the transfer method, and the amount being transferred.
However, in general, cross-border transfer fees can range from 2% to 10% of the total transaction amount.
Here are some examples of cross-border transfer fees charged by banks in Singapore:
- DBS: 0.5% to 3% of the total transaction amount, plus a flat fee of S$10 to S$35.
- UOB: 0.3% to 3% of the total transaction amount, plus a flat fee of S$10 to S$50.
- OCBC: 0.5% to 3% of the total transaction amount, plus a flat fee of S$10 to S$50.
The number mentioned earlier is for a single transaction, but what if you have hundreds or even thousands every day? Your hard-earned revenue could vanish in transaction fees. That's where payment wizards like Wise (for individuals) and Revolut step in, along with our very own business account. These game-changers have emerged to tackle this issue head-on!
By operating sans physical locations and keeping overheads minimal, we offer astonishingly low cross-border fees – some as low as $0.07! It's a definite win for businesses dealing with constant overseas payments.
→ Sign up for a free business account now!
Reasons Behind Cross-Border Fees
Cross-border fees are essential if you are engaging in international financial transactions. This fee includes the bank's charges or payment processors. This is charged because of the foreign transaction, a fixed, non-negotiable processing fee. You can reduce the fee by applying the tips mentioned above, as you need to pay some amount to financial institutions to compensate for the additional processing and organizational work done for international transactions.
How to Make the Most Out of Cross-Border Fees
If you want to avoid these cross-border fees, simply set up a multi-currency account with a bank or opt for Grof, you gain the advantage of managing funds in various currencies. By holding funds in the currency of the recipient's country, you can sidestep currency conversion fees for local transactions. These accounts come with added perks like competitive exchange rates and reduced transfer fees for the same currency. Currently, we support SGD, USD, and EUR currencies, all at nearly the same-day rate and with zero fees!
But here's where we stand apart from traditional banks: our business account not only ensures seamless global payments but also offers real-time transaction tracking across different users. Picture this – you can effortlessly monitor and maintain a record of payments from different sources and bills, all within a single app!
Conclusion
While cross-border transfer fees might appear inevitable, the good news is that you hold the power to diminish their impact on your financial health. By employing the right tactics, such as comprehending fee structures, strategically timing transfers, and staying vigilant about hidden charges, you can seamlessly execute international money transfers.
At Grof, we're dedicated to simplifying this process for you, right from the comfort of your home. And here's the cherry on top – no minimum deposits and no monthly commitments required to get started! Schedule a free demo with us to embark on a journey into the future of finance. Your international transactions just got a whole lot smarter.
