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Hidden Costs – Act 2

hidden fees; Hidden fees; Be careful; fintech; Transfer, Hidden Costs – Act 2, Kompara

In order to enable you to make the best choices for your money transfers, we offer you to focus on the pricing conditions applied by money transfer operators.

Generally, several types of fees are charged by transfer operators, including "fee-for-service," "exchange fee," "withdrawal fee."

The fee per deed is the price of the transfer receipt, processing and payment services. Depending on the transfer operator, they can be fixed per transaction, or may represent a percentage of the total transfer amount. They are usually communicated to the consumer by the transfer companies at the beginning of the transaction. 

All other fees are what we call "hidden fees."

Why "hidden fees"?

"Hidden fees" because they combine costs that are not always explicitly communicated to the consumer. However, they are well paid at some point in the shipping chain and likely to have a strong impact on the amount ultimately received by the recipient. 

By paying attention to this, it is possible for the consumer to make great savings by sending and receiving funds.

Foreign exchange fees

In the article "Hidden Fees – Act 1," we explained what foreign exchange fees are and gave tips on how to save on these fees. 

Today, we will be particularly interested in withdrawal fees.

Withdrawal fees

These are commissions applied to the consumer and related to the way money is withdrawn: cash, mobile charging, electronic wallet, etc. In most cases, these fees are paid when the funds arrive in a bank account, a mobile charging account, an electronic wallet, and the recipient wishes to be able to withdraw them in cash. 

In addition to other types of fees (act, change, etc.), withdrawal fees also vary depending on the amount withdrawn, the country of destination, and can quickly escalate. The amount ultimately collected by the recipient can then be greatly reduced.

How do I know if the operator is charging a withdrawal fee?

In the context of the lack of transparency sometimes observed on the pricing of money transfers, it is up to the consumer to pay attention to the costs applied by the operator throughout the remittance chain, up to their final destination.

Kompara Tip

To help the consumer with this task, the Kompara team will soon provide you with a cost simulator. 

In the meantime, feel free to apply our advice available in our blog, and inspect the information available on the operators' sites or applications.

 See you soon????????

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