Today’s world is a global village. The Internet, the ease of travel, and the widespread use of English have made it possible for people to travel from one country to another for business or pleasure. This has also led to an increase in online booking of hotels, hostels, BnB etc. from anywhere in the world.
However, reserving hotels from different parts of the world can burn a hole in your pocket if you are not prepared for it. The cost of booking hotels can be high if you are not aware of the various options available to you. To help you in this regard, here is a list of useful tips on how to save money on international payments when booking hotels:
Check the currency rate
Checking the exchange rate is the first step you must do before sending money. Determine how much money you need to transfer by looking at the exchange rates and the value differences between the currencies of the two nations. Never pick a service before weighing it against alternatives provided by rival international money transfer firms. It won’t take long and will help you figure out which company has the best exchange rate, lowest transfer costs, and most reliability.
Search for discounts and introductory offers
If you’re someone that always looks out for offers and discounts, keep an eye out for introductory incentives from banks, which are frequently available to customers making their first overseas money transfer. Additionally, keep a watch out for regular customer discounts if you frequently send money abroad.
Calculate the total amount
Regarding the entire cost, be specific and careful about how much you’re paying. The fees may be modest even while the exchange rate is high, or vice versa. A larger charge could be acceptable when the exchange rate is favourable. Calculate the total amount that the recipient will receive before moving forward with the transaction.
Don’t forget hidden costs
The average breakdown of the overall cost of sending money abroad is as follows:
- Conversion fee – International money transfer providers frequently take advantage of the small differences between mid-market rates and the rates used for the transaction. Or to put it another way, they make more money selling the currency than they did buying it. As opposed to other providers, be sure the price difference between the “buy” and “sell” prices isn’t too significant.
- Other fees – Depending on the service you want, you might have to pay more. There might be more fees when sending money with a credit card, as opposed to a debit card or a bank transfer, for instance. You can be charged intermediate bank fees if you send money internationally through a bank. Some institutions may charge a fee for receiving overseas transfers. Never forget to investigate such incidents.
Reduce the number of transfers
Make one large transfer rather than several smaller ones. This will cut down on the cost brought on by frequent transactions.
Use wire transfers
Sending money overseas using a credit card can be quite expensive due to the increased transfer costs. A wire transfer is more convenient and cost-effective.
Use online platforms
Make sure to utilize online transfer services. In comparison to banks and Forex brokers, they offer competitive rates and are less expensive. Additionally, using an online service saves you a tonne of time and is easy to use. Also, read the terms and conditions well so that in case anything goes wrong or there are technical errors, you can get it refunded.
Negotiate a better rate
You can use your relationship manager to bargain for a lower rate than the card rate when you decide to send money overseas through a bank. If you don’t negotiate, banks will convert your money at the regular card rate which frequently has large spreads. Smaller banks and third-party transfer companies such as https://www.crezco.com/international-payments provide competitive rates.
Think about transfer speed
Only choose transfer speed if you need to move money urgently; otherwise, you will be spending more money to do something that can be done for less. While choosing this, be sure to read the terms and conditions as well.