Published by Hon
Covercy, money transfer service between countries, on the one hand it’s cheaper than the bank, on the other hand – it is still a young company with a new service – so what are the pros and cons, and should we continue to pay huge commissions to banks (even above 5%) on remittances?
Transfer of funds between countries is an expensive business – if you need to transfer funds from your own account to a bank account abroad, you end up paying very high fees – a fee for converting the funds, close to 0.2% of the transaction (but there is a minimum fee of $ 6) an exchange rate fee that usually reflects a commission of more than 1% (the guide – the conversion rate – what is it? and how to get the best available rate?); a processing fee (SWIFT) is usually evaluated between $ 20 minimum up to $ 150 maximum (most banks charge a 0.175% of the amount of transfer with a minimum fee).
In addition, with regard to transfers of money between countries, there is also a connecting bank fee (CORRESPONDENT BANK) and here it could add up to a few dollars (can reach several tens of dollars), however this is not always the case and sometimes there is actually a direct bank connection (The bank through which you make the action has a direct link to the bank account holder abroad). To sum it up, an international bank transfer includes a lot of money and it can get to a few percent of the total amount.
In fact, the lower the amount of the transfer, the higher the commission percentage is, and in amounts of hundreds of dollars to a few thousands, it can easily pass the 5%….