Australians are peripatetic people. The scale of international business transactions now taking place necessitates a forward-thinking strategy when it comes to international money transfers. Companies are increasingly engaged in international money transfers, and the costs of these transactions can cut into your profitability. On a personal level, international money transfer services are increasingly important when it comes to immigration-related issues, transferring money overseas, and repatriation of earnings etc. For all of these reasons, it’s important to rethink international money transfers.
- Banks Are Designed to Make As Much Money As Possible – avoid them for international money transfers
Banks are in the business of making money, lots of money. Most all of us already know that banks charge extortionary fees on overdraft facilities, loans, and other services that they provide to clients. What we don’t know about banks is that international money transfers (international payments) are often laden with many hidden charges. For example, the currency rates that banks charge are much higher than the standard market rates for those currency pairs. It has been said that banks can charge an additional 5% in extra charges on the total cost of the international money transfer. This may not be detrimental on a one-time transfer to/from Australia, but if you have a business making regular payments abroad this will cripple your operations.