Transferring money to India has never been easier than it is now, with a multitude of options that are fast, convenient, secure, and cost-effective.
However, with so many options available, it can be overwhelming to choose the best option that fits your international money transfer needs.
In this comprehensive guide, we will take a deep dive into the various ways to send money internationally including India, and explore their pros and cons. We'll also discuss the top reasons for sending money to India, including supporting family members, paying for education or medical expenses, and investing in businesses.
Additionally, we'll cover essential considerations to keep in mind when selecting a service, such as transfer fees, exchange rates, and transfer speed.
Whether you're sending money internationally to family, paying for education, or investing in the country's growing economy, you'll have a better understanding of the best ways to send money to your loved ones in India in 2023 and be equipped to make an informed decision that suits your financial needs.
Sending money abroad has become increasingly common in today's interconnected world. Whether it's to support loved ones, invest in a foreign economy, or fund travel or education, people have numerous reasons to send money internationally.
For those sending money to India, here are some of the top reasons why people transfer money to India:
Supporting Family Members: For many people who live and work abroad, sending money back home is a way of supporting their families. This could include paying for their children's education, helping with medical expenses, or providing financial assistance to start a business.
Investing in India: India's economy is one of the fastest-growing in the world, and many investors are keen to capitalize on this growth. Whether it's through stocks, real estate, or businesses, there are many opportunities for investment in India.
Traveling to India: India is a popular destination for tourists from around the world, and travelers often need to send money internationally to pay for expenses like hotels, transportation, and food.
Read our guide to currency exchange for tourists.
Studying in India: India is home to many world-renowned universities, and students from all over the world come to study in the country. These students often need to send money internationally to pay for tuition fees, accommodations, and living expenses.
Doing Business in India: India is a hub for international trade and commerce, and many businesses have operations in the country. If you are doing business in India, you may need to send money internationally to pay for expenses such as salaries, rent, and supplies.
Whatever the reason for sending money to India, it's important to choose a reliable and trustworthy provider. With so many options available, it can be difficult to know where to start. That's why it's important to do your research and compare different providers to find the one that best meets your needs.
Bank transfers are one of the most common ways to send money. This method is safe, secure, and fast. Most banks offer online banking services including sending money internationally. You can send money to any bank in India. However, the transfer costs and exchange rates can be high, and the processing time can take several days.
Remittance companies are specialized companies that send money from one country to another. These companies offer a competitive exchange rate and low fees compared to banks. Some of the popular remittance companies in India are Wise, Remitly, and Xe among many others. The transfer time for these companies is fast, and the money can be deposited directly into the bank account of the recipient.
Digital wallets like Paytm, Google Pay, and Amazon Pay are becoming increasingly popular for money transfers. They are fast, secure, and convenient, and they offer a competitive exchange rate. These wallets can be used to pay for goods and services online and can also be used to send money to bank accounts. However, there may be limits on the amount that can be transferred, and fees may apply.
Cryptocurrency is a digital currency that can be used for money transfers. It is decentralized, which means that it is not controlled by any government or financial institution. Cryptocurrency transfers are fast and secure, and the fees are generally low. However, the value of cryptocurrencies can be volatile, and they may not be widely accepted in India.
When it comes to transferring money to India, there are several key factors that you should keep in mind to ensure that your transaction is smooth, secure, and cost-effective. Here are some of the most important factors to consider:
Transfer Fees - The cost of transferring money can vary greatly depending on the service you choose. Comparing different money transfer providers' fees is crucial to finding the one that offers the lowest charges.
Exchange Rates - The exchange rate determines how many Indian rupees you will get for your money. Different providers may offer different rates, so it's essential to shop around for the best deal.
Transfer Speed - If you need to send money quickly, look for a service that offers fast transfers. Some providers offer same-day or next-day transfers, while others may take longer. Keep in mind that a faster transfer speed will be more expensive.
Security - Your personal and financial information must be kept secure during the transfer. Look for a service with strong security measures in place to protect your information.
Payment Methods - Not all providers accept the same payment methods. Check to see if the service you're considering accepts the payment method you prefer, whether it's a bank transfer, credit card, or other options.
Delivery Methods - Consider how you want the recipient to receive the money. Different services offer various delivery methods, including direct deposit, digital wallets, cash pickup, and home delivery. Choose the most convenient option for your recipient.
Customer Support - Reliable customer support is essential if you have any issues or questions about your transfer. Look for a provider that offers excellent customer service, whether it's through phone, email, or chat support.
By considering these factors when choosing an international money transfer service, you can ensure that your money is transferred to India quickly, securely, and cost-effectively.
To help you make an informed decision, we have compiled a list of the top remittance companies for sending money to India in 2023.
Remitly is an excellent choice for anyone who wants to remit money to India quickly, securely, and cost-effectively. With a competitive exchange rate, low fees, and flexible payment options, many people choose Remitly for their international money transfers.
One of the standout features of Remitly is its fast transfer speeds. With two different transfer options (Economy and Express), you can choose the speed that works best for you. If you need the money delivered quickly, the Express Transfer option can deliver funds within minutes.
Another great feature of Remitly is its user-friendly mobile app. The app is available for download on the App Store and Google Play. With the app, you can make transfers on the go and track the status of your transfer in real-time. And if you need more money with Remitly, you can increase your sending limits by providing additional information.
Remitly offer multiple payment options including debit/credit cards and bank account transfers, while delivery options include a direct deposit to a bank account, cash pickup, home delivery, and mobile wallet.
The transfer limits for sending money to India from the US are $2,999 in 24 hours, $10,000 in 30 days, and $18,000 in 180 days. The transfer costs for sending money to India from the US are based on the transfer amount, with zero fees for transfers of $1,000 and above and a fee of $3.99 for transfers less than $1,000.
Wise, formerly known as TransferWise, is an online money transfer company headquartered in the UK. For people without borders, Wise is one of the best alternatives to the traditional wire transfer system used by normal banks.
Wise provides a real-time exchange rate, low and upfront fees based on the transfer amount, and fast transfer times. Usually, it takes 1 working day to receive a wire transfer, and 1-3 working days to receive money sent via ACH transfer.
With multiple payment options, including bank account transfers, debit cards, and credit cards, and delivery options such as sending INR to the recipient's bank account in India, Wise is a versatile platform for transferring money globally. Additionally, the Wise mobile app is one of the most popular international money transfer apps.
The platform offers a multi-currency bank account, allowing users to hold and send money in multiple currencies. Wise also provides high transfer limits, with users able to send up to 1 million GBP per transfer to a private individual or up to 1.5 million INR per working day to businesses.
Furthermore, Wise offers excellent customer support, with a dedicated team available to answer questions and resolve issues that users may encounter.
PassTo is a digital money transfer company based in the UK that specializes in providing quick and secure money transfers abroad.
The company's key features include a user-friendly mobile app, a competitive exchange rate, transparent pricing, and low fees, making it a cost-effective option for transferring money. The company's mobile app makes the process of transferring money quick and easy.
PassTo also boasts fast transfer times, with most transfers completed within minutes. Multiple payment options such as bank account transfers and debit/credit card payments are available. It offers different ways to receive money, such as bank deposits, mobile wallet credits, airtime top-ups, and cash pickups.
PassTo is licensed and regulated by the Financial Conduct Authority (FCA) in the UK, and it uses advanced security measures to safeguard transactions and personal information. Transfer limits vary depending on the country, with most instances having a maximum of GBP 3,000 per day, GBP 8,000 per month, and GBP 50,000 per year
Xe Money Transfer is an online currency exchange company based in Canada that provides low-cost international money transfers and a highly competitive exchange rate.
The company has a user-friendly website and a mobile app and offers various transfer options, including bank transfers and mobile transfers.
Xe offers a range of features that include live exchange rate tracking through the XE Currency Converter, free of charge. Additionally, customers can set alerts for any currency pair to stay informed of rate fluctuations. Transfer fees depend on the destination country and the transfer amount.
With Xe, most transfers are completed within 1 to 4 business days. The company offers a variety of payment methods, including bank account transfers, debit cards, and credit cards, and supports international wire transfers and ACH transfers.
Customers can transfer up to $500,000 per transaction, making Xe an excellent option for large transfers.
Panda Remit is a digital money transfer company based in Hong Kong that specializes in providing fast and secure international money transfers at a competitive exchange rate.
It is an excellent option for those seeking fast, secure, and cost-effective international money transfers.
Its key features include zero fees for the first transfer, low fees with no hidden fees, and fast transfer times, with most transfers completed within 1 to 2 business days.
Panda Remit also provides real-time transfer notifications via SMS, WeChat, or email, ensuring customers are kept informed throughout the process. Payment methods include bank transfers, debit cards, and ATM transfers, with multiple delivery options such as a direct deposit to digital wallets, bank cards, or cash pickup.
The company guarantees 100% satisfaction, and its user-friendly PandaRemit mobile app makes it easy for customers to transfer money internationally conveniently.
The State Bank of India California, a subsidiary of India's largest bank, the State Bank of India, provides a range of money transfer services, including international wire transfers, ACH transfers, and online transfers.
The bank is known for its fast and cost-effective option of sending USD to INR, offering a competitive exchange rate. Customers can send money online for free within a few hours to any bank in India, making it a convenient option.
The bank also provides three different ways to send money: online, via the SBIC mobile app, and in-branch. Online transfers and transfers above $50,000 have zero fees, and the in-branch fee for transfers below $50,000 is $15.
The transfer limit varies depending on the method and account type; for example, for bank accounts opened online, the limit is $25,000 per day and $50,000 per month. For bank accounts opened in-branch, the limit is $50,000 per day, and there is no monthly limit, while the mobile transfer limit is $25,000 per day and $50,000 per month.
Instarem is a Singapore-based online remittance service provider that offers fast, affordable, and secure transfers to multiple countries, including India.
The company stands out with its real exchange rates (inter-bank rate), low fees, and transparent pricing, making it an attractive option for customers looking to send money abroad.
Most transfers are completed almost instantly or within 1 to 2 business days. Instarem supports multiple payment options, including bank account transfers, wire transfers, and debit or credit cards, offering flexibility to its customers.
In addition, the company has a referral program that allows customers to earn rewards for referring friends to the service, making it even more attractive.
Instarem also offers a loyalty program where customers can earn InstaPoints with each transaction, with bigger transactions earning higher points. Importantly, Instarem does not have a maximum transfer limit, offering a great deal of flexibility to its customers.
The best way to send money will depend on your individual needs, such as transfer speed, fees, and exchange rate. Some of the popular options in 2023 include Remitly, Wise, PassTo, Xe, Panda Remit, State Bank of India California, and Instarem.
Online money transfer companies are generally safe for transferring money to India. However, it is important to do your research and choose a reputable company that is licensed and regulated.
The cost of transferring money to India will vary depending on the company you use and the amount you are transferring. Some companies charge a flat fee, while others charge a percentage of the transfer amount. It is important to compare the fees and the exchange rate to find the best deal.
Transfer times will depend on the company you use and the transfer method. Some companies offer instant transfers, while others may take several business days. It is important to check the transfer time before making a transfer.
Yes, most companies will require you to provide identification before transferring money to India. This is to comply with anti-money laundering regulations and to ensure the safety and security of your transfer.
Most money transfer apps provide strong security measures to safeguard your money. Nevertheless, it is crucial to understand that in the event you mistakenly transfer funds to the wrong recipient, there is a possibility that you may not retrieve your money. Service providers may decline to assist you in retrieving misplaced funds. Make sure that the money transfer app has high user ratings in the app store and that you send money to people you know and trust.
The choice of the best money transfer service to India may depend on various factors such as exchange rates, fees, transfer speed, convenience, payment method, and other features that suit your specific needs. It is recommended to do some research and compare the different options available to find the one that best suits your requirements.
You can consider reading reviews and ratings, checking the features and benefits offered by each service, and comparing the exchange rate and fees to make an informed decision.
To remit money to India online with ease, start on CompareRemit to find the best provider for your needs!
When it comes to repatriating large sums of money from India, it puts every NRI in a situation where he has to consider different obligations regarding monetary cross-transfer. Taxation, reliability and transfer timelines are a few things that influence these decisions.Personal finances have to be dealt with delicately and ensured that there is no loss during the due process of remittances. There are various options available in the marketplace today, be it via traditional banking or the modern ways of online transfers.CompareRemit offers a platform that allows you to compare different players in the market and pick the best rates that suit your needs.Repatriation from an NRE AccountAs a component of the liberalization scheme of the Reserve Bank of India, remitting funds from India has become relatively easier. Balances in NRE (Non-Resident External) accounts are freely repatriable. No formalities or requisite permissions are required for remittances abroad be it any amount. Funds in accounts are usually funds deposited from abroad or current income like interest or dividends on investments made through foreign funds.Repatriation from an NRO accountBalances in NRO (Non-Resident Ordinary) accounts are subject to certain conditions. The remittance of USD 1 million per financial year from NRO accounts is allowed subject to certain procedural formalities. NRO account balances include income earned locally or certain capital account transactions. Form 15-CA and 15-CB need to be submitted before a remittance can go through.Read more on difference between NRE and NRO account on CompareRemit.The Traditional Option - BanksThe most sought after choice for remittances to the UK are banks. Banks are the most popular means of transferring money to the UK because:There is a high level of trust owing to the various government regulations.Familiarity and the comfort of knowing the neighborhood-friendly banker.There are two ways one could remit funds using banking services:Online - If your bank has given you access to internet banking and allows repatriation through online instructions.In-Person - One could walk into the bank yourself and have the formalities completed there and then and have the satisfaction of seeing it to its destination with a receipt in your hand.However, it is important to note that INR to GBP/GBP to INR exchange rates may not always be competitive. The transfer fees can be high and the charges, not always transparent.Selection of Remittance Service ProviderShould you want to avoid remitting through banks, approaching a marketplace of money changers would be the next best option. A selection of remittance service providers should be made based on the following:- Transfer chargesSpeed of transferExchange ratesCharges on the conversion of currency (INR to GBP)Freeze option on exchange rate while process requirements are completedFlexibility of payment optionsAlternative Options for Remittance from India to UKWise - UK based transfer service supporters - Wise incorporates credit cards/debit cards, SWIFT, international transfers to bank accounts, domestic wire transfers and more. Wise offers competitive exchange rates for pound to rupee or rupee to pound conversions. It assures fast and low-cost online money transfers from India to the UK.ExTravelMoney - One of the easiest services for transferring funds from India to the UK, they also offer the facility of booking orders online.Western Union - In four easy steps available online and your money is sent from India to the UK. They offer competitive rates and faster transfers as well.Thomas Cook - Provides the best foreign exchange rates besides giving the assurance of secure and timely remittances for specific purposes.BookMyForex - With zero commission and zero charges, they claim to send money from India to the UK at guaranteed lowest exchange rates. The time span for the transfers to be effective is 12 to 48 hours.To select the right money transfer service one should keep the cost and time factors in mind. Convenience at a reasonable cost should be the mantra for selecting a suitable remittance service provider.
How do you pay your employees? As an employer, paying your employees is an important part of your business. Direct deposit to your employee's bank account or issuing paper checks are two of the most common ways of compensating them. Gone are the days when employees used to get paid in cash.But what happens when some employees have no bank accounts? This is where paycards come in. Paycards for employees are an alternative option when the employees do not own a bank account, and the employers do not want to pay in hard cash.It is estimated that about 5.4% of U.S. households (approximately 7.1 million) were "unbanked" in 2019, according to the U.S. Federal Deposit Insurance Corporation (FDCI). An unbanked household means no one in the household had a checking or savings account at a bank or a credit union.For small businesses with employees with no bank accounts, paycards can be a convenient option as a payment option.Direct deposit and paycards both offer the benefit of a paperless payroll distribution process and allow the employer to electronically transfer funds conveniently. While direct deposit is the norm for many businesses, paycards are gaining popularity each year.There are pros and cons of using paycards, and in this blog, we will discuss if paycards are right for your business and employees.What is a Paycard?Paycard is a lot like a prepaid debit card as it is made of plastic and can be pre-loaded. In the case of a paycard, the money loaded comes from the employer in the form of an employee's pay. The card carries the issuer name such as MasterCard, Visa, or Discover.Are Paycards Good, and Who is it For?A pay card can be used to pay an employee who does not have a bank account. Paycard holders or employees can cash out from paycards at a bank, ATM, or other point-of-service locations.Employees can also pay bills over the phone using their paycard number or authorize electronic bill payments to specified companies.Employees can use paycards at any merchant, grocery store, retail shop, or gas station that accepts debit cards.Do Paycards Have Fees?By law, employees must be able to access their wages in full without any fees. They can obtain the cash at a bank teller, ATMs associated with the card issuer, pay bills by telephone, or use the card for point-of-sale purchases.However, there may be fees for electronic fund transfers or for cash withdrawals at ATMs that are not in the issuer's network. There may be fees for card replacements, balance inquiries, inactivity fees, or other reasons. The Consumer Financial Protection Bureau issued a rule in April 2019 that paycard issuers must disclose all the fees to cardholders.Employees must be informed of the potential fees. The paycard issuer is required to give you disclosures on such fees before you sign up for a paycard or a payroll card.Also, paycards are regulated by state laws, so you might have to check for additional details depending on your state. Some states are making efforts to reduce fees that affect employees.As you can see, paycards fees mostly affect employees. In the case of direct deposits, employers are the ones who have to pay fees for setting up the payroll distribution system and a transaction fee for each time they transfer wages into an employee's account. The payroll software may also charge a fee for their service.Can Employers Save Money When Using Paycards?Since paycards are reloadable cards, employers can have the banks reload the paycards with their employees' wages for the pay period, avoiding the costs and hassle of issuing paper checks, mailing them, or re-issuing lost checks. The savings may not be a substantial amount but they can add up gradually.Can Employers Choose between Direct Deposit and Paycards?While there is no mandate that employers can only offer either direct deposit or paycards to their employees for their wages, it is safe to check with your state's law on payroll distribution.One-third of states allow employers to require employees to have bank accounts for direct deposit. In such a case, paycards may not be needed. Also, there is no law preventing employees with bank accounts to opt for paycards as their payment option.Though generally, employees tend to prefer direct deposit because of its efficiency and the least costly method of payment, as a business owner or an employer, it is better to give options instead of imposing only one method.Ask your employees about their preferred method of payment and what benefits (convenience, low fees, etc.) serve them the best.In fact, Federal law requires employers to offer alternative payment methods like paper checks or direct deposits.Should Employer Provide Pay Stub?Pay stub provides details of the employees' pay for each pay period. Employers are not required by federal law to give employees their pay stubs. However, many states have laws that require some form of written pay statement.Even if your state doesn't need you to provide pay stubs, you are still required by the Fair Labour Standards Act to keep track of your employees' working hours.For employees, a pay stub gives a record of their wages, deductions, contributions, and other information. It is also proof of income or employment, which is often needed when applying for a loan, credit card, or housing.For employers, a pay stub is useful for tax purposes, and it can be used to resolve any discrepancies with employee pay.Is it Possible for Paycards to be Overdrafted?Usually, paycards works like debit card, allowing cardholders to withdraw up to the limit of the loaded amount. However, there are paycard that allows overdraft for employees. But it can come with hefty overdraft fees if employees use funds over the limit in their account. Usually, you should be able to prevent misuse by subscribing to an overdraft protection service.Will Paycard Affect Credit Score?Paycards, like all prepaid cards, do not affect an employee's credit score.What is a Paycard Gets Lost or Stolen?A replacement card can be issued in such cases. The employee needs to notify the employer, and then the employer should immediately notify the card issuer. The employee is not liable for the incident as long as the issue is timely reported. Paycards come with similar protection as that of a prepaid card.The reporting time is determined by the card issuer. If you wait longer to report after learning of the loss and theft, the fraudulent charges may increase. You may have to pay a fee for the replacement card.Pros and Cons of PaycardsProsA win-win situation for unbanked employees and their employers.Green alternative to paper checks.Immediate payment to employees.No hassle of cashing a paycheck.No monthly or maintenance fees.Added security when assessing their funds (paycards require a PIN).Employees can report to the issuer if funds are used unauthorized.Paycards can be reloaded during each payday, saving money on issuing paper checks.Added efficiency for the employer as the employer would not have to physically present or mail paychecks to unbanked employees.ConsEmployees may incur fees for several reasons. Be aware of such potential fees.Employers have certain responsibilities to educate employees about the usage of paycards.Limited range of services and flexibility in managing your funds compared to bank accounts and other prepaid cards.The best paycards programs are easy to set up, have lower fees, quick access to funds, and provide a range of benefits such as cashback and discounts. We have made a list of popular paycards providers for businesses:Wisely Paycard by ADPOnline portal and mobile appCompatible with Apple Pay, Samsung Pay, and Google PayZero cost sign upNo hidden feesNo credit checkNo overdraft feeZero cost direct deposit of pay and other sources of income (including government benefits)Accepted wherever Visa is acceptedKeep track of spending and account balances 24/7 on the appGet cash back at major retailersSurcharge-free ATM withdrawalsFDIC insuredSecurity features include instant card lock, purchase protection, and travel alert notificationsRapid PaycardDirect Deposit onto rapid paycardLoad funds from approved checks with Ingo Money mobile appsNo fee for cashing paycheck24/7 account access with rapid! Access mobile appNo credit checkCan be used at ATMs, merchants worldwide, wherever Debit Mastercard or Visa debit cards are acceptedPay bills and make purchasesBook airline and hotel reservations onlineEarn interest on savings accountGet cash back rewardsFDIC insuredMoney protected with Zero Fraud LiabilityKittrell PaycardNo fees to use (there are fees for certain situations)Fee-free ATM network with MoneyPassWebsite and Kittreall AppGet real-time alerts and push notificationsCash back at point-of-sale terminals2-way texting to manage your card and accountCompatible with Apple Wallet, Google Pay, Samsung PayEasy portability (Get direct deposit of stimulus checks, tax refund, benefits)Freeze or unfreeze card on-demandSkylight PaycardZero sign up feeNo credit checkNo minimum balance Personalized your card with a family photo or unique imageManage money anywhere on Mobile AppDirect deposit your government benefits, tax refundsUse anywhere where Visa Debit & Debit Mastercard are acceptedFDIC insuredZero liability protectionPay bills onlineEarn interest on savings accountEarn cash back with Payback RewardsSend money to or receive money from friends and family with Netspend cardsSet text alerts about transactionsRefer a friend and boost your card balanceSkylight overdraft limit is $100 & 3 times/ monthConclusionOverall, paycards can be convenient and cost-effective for employees and employees when compared to paychecks or for those employees with no bank account. And the paycard fees are becoming more transparent and competitive.While paycards can be challenging at times, especially when you are employed in multiple jobs and have a separate paycard with each employer, your funds are scattered in multiple cards so it becomes difficult to manage your finances. Some may prefer to put all their money in one place, like a checking account.However, if you can't open a bank account, a paycard is a great option to get paid. Read the fine prints before signing up for a paycard and know the potential fees that come with it.
When traveling abroad, be sure to get the most out of your money by gaining a better understanding of foreign currency exchange. There are many resources for exchanging money and making purchases abroad, but many include hefty fees or restrictions. Make sure you understand all of the advantages and disadvantages of each currency exchange option, so you can avoid dealing with any unforeseen charges after your trip. The easiest way to exchange currency may not always be your best option. You can choose to exchange your currency before leaving for a trip or after arriving at your destination, but selecting the right one depends on where you exchange your currency.Where Can I Exchange Currency?Know what options for exchanging currency are available before you exchange so you can get the best exchange rate possible. These are the most commonly used currency exchange options.1. Airport Kiosks and Foreign Exchange Desks:Although exchanging currency at the airport may sound convenient, it is best to avoid, given the outrageously high exchange fees. According to NBC News, airport kiosks can charge up to 20% in fees and have a much lower exchange rate compared to banks and private exchange companies. Exchanging currency at the airport should be avoided at all costs and saved only for emergencies.2. Credit Cards:Before relying on your credit card abroad, first, be sure to find out if it will be working internationally. If so, look into the potential fees that may apply while abroad. Some fees may include currency exchange fees, transaction fees, or service charges on cash advances. Overall, credit card companies get the best rates and can offer you an exchange rate closest to the official rate.3. Debit Cards:Debit cards may charge foreign transaction fees and international ATM fees. Be sure to only use debit cards for cash withdrawals. If any complications arise from a purchase made using a debit card, your account is immediately debited, and it may take anywhere from a few days to over a week for the erroneous charge to be corrected.4. Foreign Currency Cards:Prepaid foreign currency cards work like credit or debit cards. They are preloaded with a set amount of currency, which is deducted as the traveler uses it. However, there are many fees and restrictions that may apply, such as withdrawal and inactivity fees and withdrawal minimums and limits.5. Traveler's Checks:Traveler's checks work like US dollars; you must find somewhere that will exchange the traveler's check for the local currency. But unlike cash, traveler's checks come with the added security of being replaced if lost or stolen. However, due to the declining use of traveler's checks, they may not be accepted by some businesses.6. Private Money Exchange:Private money exchange businesses or currency exchange businesses often compete with each other to provide the best exchange rate, so you have a good chance of finding a higher exchange rate. Some fees apply and vary depending on the provider. Also, keep in mind that these companies are less prevalent in rural towns, so be sure to complete your transactions before traveling out of large cities.Ways to Avoid Foreign Exchange FeesForeign exchange fees may seem inevitable when exchanging currency, but these options may help you avoid paying hefty fees.1. No Foreign Transaction Fee Credit Cards:Unlike your current credit cards, which on average charge 3% of every dollar spent while abroad, certain international credit cards have no foreign transaction fees.2. International Travel Cards:For inexpensive cash withdrawals, go for international travel cards or travel money cards. Cheaper than credit cards or debit cards, international travel cards are prepaid with a certain amount so you can make purchases or withdraw money as you travel. Some even have the option of carrying more than one currency.3. Local Banks:Exchanging money at local banks is not only convenient but also much less expensive than exchanging at airports or hotels. They also tend to give decent exchange rates.4. NO to Cash Advances:Using your credit card as an ATM card requires you to pay a cash advance fee in addition to the cash advance APR, which can both add up to large sums.5. YES to Local Currency:Always decline if given the opportunity to charge your purchase in USD. This may bring hidden transaction and conversion fees that will amount to much more than charging your purchase in the local currency. Insist that all purchases are charged in the local currency. There are always financial risks involved with traveling internationally, which is why it is important to take extra precautions making exchanges, purchases, or withdrawals abroad.
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