How to Save on International Bank Payments from the UK?

How to Save on International Bank Payments from the UK?

If you live abroad, but your business regularly makes or receives bank payments from the United Kingdom, then you are probably already aware that the costs of overseas banking can be extortionate.

There is a cost of living crisis sweeping the globe, caused by both the ongoing conflict in Ukraine and the COVID-19 pandemic, which has led to inflation and higher food prices. Whether you are a business owner or just an ordinary person, there’s never been a better time to save money.

This post will explain how you can save money on international bank transfers from the United Kingdom:


Bank Transfer

In some places, it is possible to transfer money internationally directly through one’s bank, with no added fees. For example, it is possible to make bank payments from Australia to the UK, if both account holders hold an account with the same bank or an overseas wing of the same banking group. If you are a business owner, then this is one of the best options afforded to you. Bank transfers are extremely straightforward and offer fraud protection, which is an inherent risk in international transfers.


Alternative Methods

Another method to consider is using an international transfer service. A transfer service can facilitate international payments from the UK, although you will have to pay a fee. The fee that’s charged by these services is usually negligible though, depending on the amount of money that’s being transferred. The larger the amount, the more money that’s going to be taken. Transfer services take a specific percentage out of every transaction. When small amounts of money are being transferred, this means that the amount that’s taken is very low. When larger amounts are transferred, this changes.


Transfer Size

Following on from the point made in the last section, the larger the amount of money that you are transferring, the higher the fee charged is going to be. Because of this, when you are making international bank payments, you need to work out exactly how much the fee that you’re going to be charged is. If the fee is very high, then it could be cheaper for you to send several payments, rather than one large one. Sending smaller payments will make it easier for you to reduce the amount of money that you lose to fees. Some services will limit the number of payments that you can send at one time, however.


Foreign Brokers

If you are selling property or commodities abroad, then you may need to work with a foreign broker, so that you can get the best rates possible. Hiring a broker is one of the most popular alternative payment methods, although brokers themselves charge a fee. Before selecting a broker, you need to conduct extensive online research. Make sure to read a broker’s reviews before working with them. While it’s unlikely that you are going to fall victim to fraud, you can’t rule it out, especially when you are transferring funds for your business.


Instant Services

Another type of transfer service that you can use is an instant service. When you use these services, you send the money, and the money’s recipient collects it on the other end from a designated collection point. Most people view instant services as a last resort, especially for business transfers. The reason for this is that the fees they charge can be extraordinarily high. If you are trying to transfer money from the UK, then it’s more often than not a good idea to avoid these services, because there are better ones available to you, such as those previously outlined.


Service Comparison

If you are sending money internationally, then it’s a very good idea to compare services before using them. A comparison site will help you to do this. It doesn’t take long to compare different sites, but it will help you to find low transfer fees, a reliable service, and a good exchange rate. The exchange rate is always something that you need to think about because if you don’t choose a service with a reasonable exchange rate, you can end up losing a lot of money.


Transfer Limits

You also need to take the transfer limit of the service that you intend on using into consideration. Something that a lot of people don’t know is that some transfer services only charge a fee if you transfer money exceeding a specific amount. If the service that you are using does this, then you may be able to send money internationally for free, as long as you don’t exceed this limit. The best way to determine whether or not the site that you are using has a transfer limit or not is to reach out to them by phone or email and ask them.


Smaller Companies

A mistake that you need to avoid making is using a company that’s designed for small transfers to make large ones. Transfer companies don’t all cater to the same customers. As a business owner, you need to find a transfer agency that facilitates large transfers. If you are using your bank to make an international transfer, then you will likely get access to better rates if you hold a business account with your bank. A business account also offers other benefits, such as access to high-interest savings accounts and rewards schemes, as well as cashback.


Money Expedition

Another mistake that you need to avoid making is unnecessarily expediting transfers. If the money’s recipient doesn’t need to receive it right away, then there’s no reason for you to expedite it. Money transfer services often charge a lot of money. If you use a transfer service, the money’s recipient will usually receive it in a day or two. The only time that you should expedite transfers is if the money needs to be received urgently. The fees charged for expediting a transfer can be anywhere from 0.5-2%. If you do need to, research the service’s expedition fee first.

If you are a business owner that frequently transfers money between the country that you are in and the United Kingdom, then you need to find a transfer method that’s suitable and cost-effective. The more money you lose on transfer fees, the less you have to invest in your business.

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