Cross-Border Payments ยท Transfer Cost Guide
The real cost of a transfer
Why can a transfer with a low advertised fee still deliver less money than expected? The answer is usually a chain of costs rather than one dramatic charge.
The leaky bucket
Four places to look
Visible fee
The amount shown beside the send button. It is easy to compare, but it may be only one part of the cost.
Exchange-rate margin
Compare the quoted exchange rate with a neutral reference rate at the same time. The difference can exceed the advertised fee.
Funding cost
A bank or card issuer may add a wire fee, cash-advance fee, or other charge after the provider quote.
Payout cost
The recipient may pay an incoming bank fee, wallet withdrawal charge, agent fee, or merchant settlement fee.
A better comparison
Record the landed amount.
For each provider, note the same sending amount, at the same time, to the same payout method. Record the fee, quoted exchange rate, estimated arrival time, and exact amount the recipient will receive.
If the recipient needs cash, add the withdrawal or agent charge. If the payment is for a sale, include merchant settlement fees and possible chargebacks.
Safety check
Cheapest is not automatically safest.
Confirm that the provider is licensed for the corridor, that the recipient name and number are correct, and that customer support is reachable. Do not share a password, PIN, one-time code, card number, or identity document with anyone claiming to help with a transfer.
A useful comparison ends with two numbers: what left the sender, and what the recipient could actually use.