Why is Exchange Rate Not the Most Important Factor When Transferring Money Online?

It is very common for ex-pats to choose a remittance service solely based on the exchange rates advertised by the service providers. If you are about to do the same, then check out this post to know why you should not.

When you are thousands of miles away from your loved ones working in a foreign country, you'd definitely want to get the best value for your hard-earned money. As a result, most ex-pats choose remittance services that advertise the highest exchange rates.

But while the exchange rate sure is a vital consideration, it is not the only one. There are a few other factors that deserve equal attention. Take a look-

Why Should You Not Choose a Remittance Service Based on Exchange Rates Alone?

Let us assume that you are currently working in a European country and want to send funds to your family in India. Like most people, you’ll try to search for a remittance service provider online. From hundreds of search results, you’ll mostly end up clicking on one that promises to offer the highest exchange rate for EUR/INR. 

This is what the majority of the people do. The remittance service providers know this and use this to their advantage by advertising rates that are higher than the market average. But in most cases, there could be a significant difference between the actual exchange rate offered by the service provider and the one it promises to offer.

Thus, it is always better to thoroughly analyze a remittance provider based on other important factors before deciding.

Choosing the Right Remittance Provider

What are the other factors critical for choosing a remittance provider? Here is a list of top 3-

1. The Reputation of the Service Provider

No reputed company would use unethical means of advertising higher exchange rates to attract customers. In most cases, it is always better to trust a reputed Indian bank that offers a wide range of NRI banking services.

Banks offer the highest level of safety, along with highly competitive exchange rates. 

2. Transfer Fee

It is also very common for service providers who advertise higher exchange rates to charge a higher transfer fee. Thus, if the higher exchange rate could help you get a better value for your money, then the transfer fee would end up eating most of the savings.

So, apart from the exchange rate of Euro to Rupee, thoroughly compare the transfer fee of a few top banks to get a general idea of the market average. 

3. Transfer Duration

You’d also want your funds to reach your beneficiary in India as quickly as possible. But even in this age of online transfers, several service providers take multiple days to complete a Europe to India transfer.

On the other hand, there are top Indian banks that offer instant and same-day Europe to India remittance services. 

Remit Money from Europe to India Conveniently with a Trusted Remittance Service

Apart from unreliable service providers, even scammers use this strategy of advertising higher exchange rates to attract customers. By choosing a remittance provider based on the exchange rate alone, you might end up paying more or even lose a significant amount of money.

Apart from the exchange rate, focus on the other factors listed above to choose the best remittance provider for your Europe to India transfers.  

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Created on Jul 13th 2021 05:30. Viewed 208 times.

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