A money transfer app makes it easy for people to move funds from one person to the other. They are also great for business to business or business to customer. But one challenge with using these apps is the fact that some of them just have exorbitant fees. And you need to be sure that you have a memo of how much they’re going to charge you beforehand. Some just impose hidden charges that catch you off guard.
The fact that money transfer app platforms have become even more popular than banks, especially for international transactions shows how fast they have spread. This is both positive and negative. As much as they are helping users move funds quicker and safer, some are not genuinely out to help users. And that is why you need a third eye when you’re choosing a money transfer app for your use. So, here’s what you need to know:
Watch out for Hidden Charges
When using any money transfer app, ensure that you’re always on the lookout for all of their fees. Check their terms and conditions and countercheck their website. There’s always a clause that can lead you to the hidden fee, even if it is not clear enough.
Check their exchange rates for a start, so that you ensure that this is not where they knock you out. Some unscrupulous money transfer app platforms have the tendency to impose wrong exchange rates so that they can swindle unsuspecting clients. They do it so well that you can’t easily notice.
When checking out the fees, you need to consider the sending fee, receiving fee, exchange rate margin, and transfer fee. All of these are important to understanding the money transfer app better in a bid to unearth anything fishy.
Choose a Reliable and Credible Money Transfer App
This is very important when you want to send and receive funds affordably. A credible money transfer app will not overcharge you on the fees. Just like when you send money from UK to India, they will give you the best exchange rate. Thus, you can move funds at a reasonable rate.
There’s been an influx of money transfer app platforms, as we stated in the introduction. Thus, you have to take your time on this and select an app that will serve your needs at an affordable fee.
At the moment, we strongly suggest that you go with Afriex or PayPal money transfer app because of their affordable fees and deep credibility. But at the end of the day, you are the one to make the choice.
Are You Sending/Receiving Crypto?
This is a matter of consideration again when sending and receiving funds using a money transfer app. Are you planning to send Bitcoin to another user, or rather receive it from elsewhere?
You need to note that cryptocurrencies are highly volatile. Nonetheless, this is not an excuse for the money transfer app to extort you through higher fees than necessary for the transaction. You need to equip yourself with enough market knowledge and news to know how much you should expect to spend.
Due to the volatility of cryptocurrency, again, you need to confirm the exact market price when you’re sending it. Even a single day is enough for a wild swing that may affect your transaction.
Are You Sending Money Abroad?
Some money transfer app platforms will charge a little extra for sending money abroad, as compared to sending it within your country. As with PayPal, when you’re sending money internationally to Africa, you can expect to spend a lot more than when sending it locally in the USA. The same applies to Afriex.
Therefore, you might assume that the money transfer app is swindling you, but there are added costs involved in moving funds abroad. Again, at this point, you’ll need to check their terms and conditions, or their fees section to learn more.
Time the Exchange Rate
Sometimes there’s the right timing to send and receive money. But this is only practical when you have the luxury of time. If it isn’t an urgent transaction, you can opt to time the exchange rate and transfer funds when it favors you most. But this requires some research and knowledge of the exchange rates.
You can use simple charts that are available online to help you save or make even 1% or more very easily. Beat them at their own game. You can even set up alerts that can notify you of specific currency pairings that can favor your transaction.
Take Advantage of Fee-free Transfers
Some money transfer app platforms give their clients free transfers from time to time. You need to take advantage of such chances to save your funds during transfers. Although rare, they are available in money transfer apps.
Final Thoughts
Keep your eyes on the price and your ears on the ground. Make sure that the money transfer app you’re using isn’t taking advantage of you when it comes to fees.
