While changing one currency to another, a specific fee is
implied by every provider. Interbank provides standard rates but they are not
provided as it is by the companies. They usually have a minor difference in
rates from the market, which is their exchange fee. It is also the basic
payment through which money transfer companies earn profits.
It is also necessary to keep in mind that these rates keep
on changing now and then. The value of a state’s currency depends on various
factors including economic stability. If you transfer payments every month, you
will be well aware by the fact that the costs do not remain the same on every
transfer.
For Instance, the mid-market rate applied when you send money
to Pakistan in euros is
1 EURO=182.16 PKR, on 15th April/2020. The
provider that you chose is providing a rate of 180.02/euro. If you have to send
1000euros it means the recipient will get 182160 PKR according to the
inter-bank rate. But calculating through the provider’s rate, the beneficiary
will receive 180020 euros.
Difference Between Exchange Rate And Hidden Fee
Let's take a difference between the interbank rate and the
provider’s rate. It may look negligible but they can influence your payments
greatly, especially in larger transfers. In the example discussed above, let's
calculate the hidden fee. Subtract the provider’s rate from inter bank’s rate.
182160-180020= 2140 which is the hidden fee charged by a provider in the
disguise of exchange rates.
Point To Ponder
The percentage of the hidden fee varies from 1% to 79%
depending upon the amount you want to send and the state of the beneficiary.
When you send
money to Pakistan online, the fee is usually lower because of high
remittance regulation. The banks in the US have a lesser fee but none of them
has a hidden fee of less than 1%.
Due to lack of knowledge, many people pay extra billions
every year to the providers as an exchange fee. It is necessary to compare
available options in order to find the most suitable one. It is difficult to
calculate the extra cost manually for every provider, hereby you can use
comparison tools such as Monito to find the best provider.
Ace Money Transfers Providing Cheapest Transfers
The company has a developed portfolio in more than 53 countries
of the world. To save most of your payments, they have minimized all costs. They
value your hard-earned money as much as you do. Thereby, they enable their
customers to transfer international payments through the most low-priced service
for online money
transfer to Pakistan.
The website has a live exchange rate calculator. Just enter
the amount that you want to send and the currency. Your results will be shown.
The payment received by the beneficiary will be the same as shown. ACE Money
Transfer promises transparency by not adding any hidden costs.
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