When you’ve found your ideal property overseas the next step is how to transfer large sums of money to pay for it. In many cases this is a significant chunk of your assets. Whilst you want to get the best deal you possibly can, you also need to be sure that it’s in safe hands.
With over 500 providers authorised to provide international money transfers in the UK all fighting for your business, how do you decide which company to trust with your international payment? We’ve put together a handy list of three tips and trust signals to look out for.
You wouldn’t buy a house or a car without knowing the price first, so why do that with your international money transfers?
Before you choose a provider, you need to understand what the eventual cost of the transaction will be, because this could make a difference of hundreds or even thousands of pounds to you and the price of your overseas property.
Yet the vast majority of providers give no price information on their websites at all. They website may advertise “free quotes” or “check our exchange rate” but this is usually just an invitation to give them your contact details so they can phone you back.
You may not be told the cost of the transaction until you have completed the registration process with a particular provider. This makes it very difficult to shop around and compare prices easily.
So, if you don’t want to waste time with filling in forms and sales calls, look for a firm that is upfront and transparent about the total cost of the transaction, such as Eris FX. Eris shows you its costs as a percentage of the total amount to be transferred on its website currency converter. Even though the exchange rate might move, the cost to you doesn’t.
If your provider is not prepared to be upfront about its costs, do you really want to trust them with your life’s savings
2 . Honesty
You also need to know that the provider you choose is honest. This means not trying to mislead or hoodwink you about the cost of your transaction by using underhand marketing messages.
The most common of these are:
- Online currency converters that only return the unachievable “interbank rate”, which doesn’t include any of the firm’s charges.
- Claims of how much you can save compared to your bank or other provider without giving any evidence
- Claims of “no fees” without explaining that “fee” only applies to the bank transfer cost and doesn’t include the exchange rate mark-up
“We have seen firms make claims that they offer the ‘best’ or ‘most competitive’ rate, seemingly without evidence, or by making comparisons based on exchange rate or fees alone, and not taking account of the overall cost to the customer”
Again, if your provider isn’t being honest with you about its costs or savings, and won’t give you evidence, do you really want to trust it to transfer your large sums of money overseas?
Would you like it if you paid more for your restaurant meal than someone at the next table having exactly the same thing? Probably not. So why should a payments firm charge you more than another customer for an identical overseas payment.
Rather than operating a “mathematical pricing” structure, which applies the cost to the size of the transaction like Eris FX does, many firms charge customers on an individual basis. They do this by employing dealers and salespeople who are paid on commission to negotiate with customers.
This means that more “sophisticated” customers are likely to secure better prices, even if they’re making the same international payment as you are.
We don’t think that’s fair, and how can you trust someone who’s not behaving fairly?
In summary, the trust signals to look for in a payment provider are just the same that you would use in the other aspects of your life: are they transparent, honest and fair? If not, why should you give them your business! If you’re looking to send a large amount of money abroad or make an international business payment, consider using Eris FX and sign up for an account today!