How to send money overseas cheaply

Tips & tricks

I. Understand the breakdown of the cost

Transfer feeIs charged by the payment service provider to transfer the money. It can either be a fixed fee, or vary depending on the transfer amount.

Conversion feeInternational payments are often made between countries with different currencies. Payment service providers make part of their margin from slight differences between interbank exchange rates and the rates they apply to their customer's transactions. This conversion fee is not paid upfront and is essentially hidden to the untrained eye.

II. How to choose

Many parameters have to be taken in account when choosing the right money transfer service. By knowing clearly what you need, you'll avoid paying for unnecessary features. Keep the following points in mind:

PriceThe transfer amount, speed of transfer and payment and delivery method chosen impact the price.

AvailabilityLook up the availability of the service at your destination.

Speed of transferOnly pay for a fast transfer if you actually need it.

ConvenienceOnline transfers are often more convenient than waiting in line at a store.

III. Delivery methods

There are many ways to send money abroad, and these are constantly evolving thanks to advancements in technology. Here is an overview of the most common ways to receive money. Note that some of these might not be available in the destination country of your choice.

CashThe recipient picks up cash at a local agency after proving his identity.

++No bank account is required++One of the fastest transfers

--Time spent waiting in line--Traditional cash-to-cash services usually charge higher prices

Bank accountThe money is sent from one bank account to another.

++Transfers within a same bank or to a partner bank can be very cheap

--Can be slow: transfer times of 6 days or more are not unheard of--The recipient might incur bank charges

III. Delivery methods (2)

Prepaid cardsThe recipient receives a card by mail or at a branch, which he can then use at ATMs or for online purchases.

++No bank account is required++Many withdrawal locations

--Additional fees to withdraw the cash might be charged

Mobile top upThe recipient receives communication credits or airtime on his mobile phone.

++Very fast++Easy

--Limited use of funds

Mobile bankingThe money arrives on the recipient's mobile banking account, from which it can be withdrawn or be used to make payments.

++Very fast++Easy and convenient++Wide coverage

Send goodsThe recipient receives a voucher which she can use to buy goods and services from partner shops, or to pay her bills.

++Low price, no conversion fee++Control over how the money is spent

--Limited number of partner shops

IV. Tips to save money

Compare different servicesIt's always a good idea to have a look at a few offers before choosing one. The cheapest payment service might differ depending on the transfer amount, the payment and delivery methods or even the time of the year. Comparison websites such as TawiPay make this easier for you.

Be aware of the cost breakdown and structureThe cost of transferring money typically includes both a transfer fee and a conversion fee. Take both of these into account, along with any other fees, when comparing services. Fees sometime evolve in "steps", such that it may be advantageous to transfer more money at the same cost.

IV. Tips to save money (2)

Hunt for special dealsPayment service providers often distribute coupons or offer special promotions for a limited time. Be sure to take advantage of these opportunities. Stay tuned by consulting social media channels, newsletters or websites. You can also subscribe on TawiPay and we’ll inform you when deals are available..

Pay only for the speed you needIt's always a good idea to have a look at a few offers before choosing one. The cheapest payment service might differ depending on the transfer amount, the payment and delivery methods or even the time of the year. Comparison websites such as TawiPay make this easier for you.

IV. Tips to save money (3)

Bundle your paymentsEvery money transfer incurs charges. However, as the transfer amount increases, these fees usually increase proportionally less. You can therefore save money by making less frequent but bigger transfers.

Evaluate a change in your habitsBy being flexible and willing to change your habits, you could save big. For example, transferring online instead of at an agency, opening a bank account in the payment beneficiary's country, sending to mobile, etc.

And compare the different services onwww.TawiPay.com