Types of Fees Involved in an International Money Transfer

  • August 01, 2024
  • 02:45 Minutes

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Moving funds from the UAE to other countries for personal or business reasons involves various fees. Knowing these costs is crucial for anyone who wants to manage their money efficiently and reduce international transfer fees.

In this article, we will cover everything you need to know about the types of fees involved in international fund transfers and how you can save money on them.

Types of Fees for International Money Transfer from UAE

Here are various fees you must consider if you plan to transfer funds from UAE to another country.

Basic Transfer Fees

When you initiate an international fund transfer from the UAE, you will typically encounter basic transfer fees. These can be broadly categorised into three main types:

  • Fixed Transfer Fee: A flat rate is charged for every transaction.
  • Variable Transfer Fee: This fee is calculated as a percentage of the transfer amount.
  • Fixed + Variable Transfer Fee: Some providers combine a fixed fee and a variable percentage fee to complete the transfer.

Also, read Understanding Money Transfer Operators.

Exchange Rate Markups

The foreign exchange rate, or FX rate, refers to the value of one currency related to another. Banks and currency exchange providers mostly add a markup to the real-time market exchange rates.

Additional Charges for International Transfers

  • Receiving Fees: Most banks charge a fee to receive international transfers, although these fees are generally lower than the outgoing transfer fees.
  • Correspondent Bank Fees: If a third-party bank is required to facilitate the transfer, an additional correspondent bank fee, also known as an intermediary bank fee, may be deducted from the transferred funds without your knowledge.
  • Cancellation or Amendment Fees: If you need to cancel or amend a transfer after initiating it, the bank or transfer provider may charge a fee for making these changes.
  • Initiation Fees: Instead of initiating a wire transfer online, some banks charge an initiation fee for requests made in-branch or over the phone.

It is crucial to thoroughly review the terms and conditions of your transfer agreement to comprehend all the fees involved. You should compare options from different providers to find the most cost-effective solution for your international fund transfer needs.

Use Payit for International Money Transfers

With Payit, you can instantly send money to over 200 countries and territories. The currency rate is updated in PayIt’s system every 3 minutes, ensuring you get the most current rates. The most recent exchange rate is applied to your remittance when you initiate a transfer.

PayIt offers instant bank transfers at zero fees for specific destinations like India. You also enjoy favourable exchange rates for your international transfers.

Benefits of Using Payit Card

Apart from international fund transfers, the Letsgo Payit Card offers other benefits.

  • Payit Plus: A digital banking service allowing direct salary credits and various financial services
  • Safety and Security: Payit prioritises the security of your transactions.
  • Instant Transfers: Many transfers are processed immediately, reducing waiting times.
  • 24/7 Service: Transfer money anytime, anywhere, at your convenience and track it in real-time.
  • Bill Payments: Pay utility bills for services like Etisalat, du, Mawaqif, and Salik.
  • Linking Prepaid Cards: Link government prepaid cards like Ratibi, Nafis, ADSSA, and DWallet to manage your finances.

Conclusion

When transferring funds abroad, it is essential to consider the various associated fees. While traditional bank transfers to another country can be expensive, alternatives such as Payit can make this process efficient and cost-effective.