International money transfers are indeed a complex space, where numerous factors influence the final payout the recipient will get in the home country. It is your responsibility to look out for these factors and have a clear understanding of the money received at the other end. Go for it when the influencing factors are favorable and not when it’s not.
So in this article, let us see the substantial factors influencing international money transfer and how exactly they affect the final amount obtained by the beneficiary.
- Exchange Rates: Most obvious and worth mentioning fact is that the exchange rate is one of the most important factors that influence remittances. Currency exchange rates are always in constant flux, thus you must initiate the international transfer when the exchange rate seems most favourable for the currencies being sent and received. It directly affects the remittance yield since it has a multiplier effect based on the money sent.
- Transfer Fees: Transfer fees are the way through which the money transfer operators cover their cost of operating overseas transactions. They usually come in two forms; fixed fees and percent based fees. Here fixed fees are flat amount fees whereas, percent based fees form a percentage of the transfer amount. In the second case, if the transfer amount increases, the percent based fees will increase as well. Depending on the type of transfer fees, there may be variations in your remittance yield.
- Transfer Speed: Transfer Speed does not influence remittance yield directly, but indirectly. If the sender wants the money to reach the destination as fast as possible in emergencies. He/she might choose the fastest delivery option, which might cause a small dent in your remittance yield. Whereas, if the sender is in no hurry and has enough and more time to plan the transfer, they can yield high and better.
- Transfer Limit: Most of the remittance providers have transfer limits daily, weekly or monthly. If the customer wishes to send money within the transfer limit, they get the best exchange rate and fees. If they are direly in need of exceeding the transfer limit, some compromises have to be made on the remittance yield.
- Offers, Promotions and Deals: Many remittance service providers offer deals, discounts and promotions. One or other ongoing offers will be applicable at any time of the year and around special occasions like major holidays, New Year, etc. There are offers for new customers and amazing rewards for existing ones such as cashback, reward points, refer a friend etc. Deals and promotions significantly contribute to your remittance yield, thus, make sure to keep an eye on seasonal promotions.
Okay, so these are the substantial factors that affect the remittance yield of the sender. Do not negate them, you will regret it. Keeping them in mind, do the most profitable online money transfer in Australia and convert your Australian Dollars to Indian Rupees or Philippine Peso etc. with maximum yield.