Holidays, cultural celebrations, and other events hold significance to immigrant communities. As the holiday season approaches, remittances increase as holiday spending influences local economies, and immigrants want to reflect the spirit of generosity, culture, and festivities. One proof of this is the data from the Bangko Sentral ng Pilipinas. The Philippines, one of the countries with the highest volume of remittances, experienced a significant increase in remittances in December 2022 and December 2023, with a total of 3.5 billion USD and 3.6 billion USD, respectively.
Are you an immigrant in a country like Canada sending money to your family back homeperhaps looking to send money to Pakistan online especially during the holidays and special occasions?
Understanding Transfer Fees
When you send money abroad, you do not only send the amount you want to transfer. You must also pay the remittance fees to the banks or money transfer service providers. These fees often cover the cost of processing the transaction, including administrative expenses, regulatory compliance, and operational overhead. Remittance fees can be at a flat rate or charged as a percentage of the amount being sent.
Here’s a list of types of international remittance fees you may encounter:
- Flat Fees – Fixed charges regardless of the money you will send.
- Percentage-based Fees – are calculated as a percentage of the amount you send. This can vary from one service provider to another.
- Exchange Rate Margin – Remittance service providers often include a margin above the mid-market currency exchange rate. This margin can impact the amount that your recipient will receive.
- Receiving Fees – Some banks or financial institutions in the recipient’s country may charge a fee for processing and crediting the transferred fund to your recipient’s account.
- Intermediary Bank Fees – This can be charged if the fund you sent will pass through one or more intermediary banks before reaching your recipient.
- Service Fees – This fee covers expedited transfer, currency conversion, handling fees, etc.
- Commission Fees – Some remittance service providers charge this fee as a commission, which can be a percentage of the amount sent.
- Compliance and Regulatory Fees – These fees are related to meeting regulatory requirements in certain countries, such as anti-money laundering (AML) checks.
Cancellation or Amendment Fees – You may be charged if you cancel or amend the transfer after you initiate it.
When you understand these transfer fees clearly, you can better assess the various services and charges provided by banks and other financial institutions regarding money transfers. For a country-specific breakdown, see our guide on Nepal transfer fees explained.
Top Free-Fee or Low-Fee Money Transfer Services for Holidays
Is your country celebrating a public holiday, or is your family celebrating something special back home, and you plan to send money? Here are the top affordable money transfer service providers you can consider:
RemitBee (Highly Recommended!)
RemitBee is one of the leading fintech companies in Canada, offering a wide variety of services, including money transfers, currency exchange, mobile top-ups, international bill payments, and travel eSIM.
When you send money with RemitBee, you can use our competitive exchange rates with no hidden markups. Our delivery times are fast, so your recipient can access the funds you sent them as soon as possible. If you are planning to send over 500 CAD in one transaction, especially for the holidays, the good news is that your transfer fee will be waived! RemitBee is the preferred money remittance service provider for sending money to countries like India, Sri Lanka, and the Philippines. Sign up with RemitBee and send money online anytime, anywhere in Canada.
Do you believe that sharing is caring? We do, too! Join RemitBee’s referral program by inviting your friend or business to your referral code. When they sign up with Remitee, they will get a sign-up bonus of 10 CAD. On their first transaction, you will get 20 CAD!
Wise (formerly TransferWise)
Wise uses live exchange rates and does not have FX markup. However, you need to pay a transfer fee when sending money, and that fee will depend on the amount you send and the type of currency.
OFX
Sending money abroad is free for UK and EU OFX clients. However, third-party intermediary banks may deduct a fee from your sent fund. This fee varies. For example, if you send 100 CAD from Canada to India, your fee may be around 15 CAD.
Revolut
With Revolut, you can send money abroad. Transfer fees and other costs may vary depending on your Revolut plan and when you make transfers. For example, there can be weekend currency exchange fees and fair usage fees you need to pay, especially if you have Standard and Plus plans.
Xe Money Transfer
With Xe, you can send money for free when you transfer more than USD 500. However, you will be charged 3 USD for transfers below that amount. Xe’s exchange rates vary but are typically between 0.5% and 2%.
Western Union
Western Union has a fluctuating service fee and exchange rate markup. The fees you pay will depend on your transfer amount, destination country, and how your recipient will receive the money. Additional charges from your card issuer may apply if you use a credit card.
Tips to Avoid Paying Extra Fees
Tip 1: Use RemitBee, which offers thresholds for zero-fee transfers
Now that you know your different options in sending money for holidays, choose the service provider that is fast, safe, reliable, convenient, and affordable. In this case, RemitBee is highly recommended. Remember, your transfer fee is free when you remit over 500 CAD in one transaction!
Tip 2: Use direct debit or e-transfers instead of credit cards
Funding your money transfer using direct debit or e-transfers is often free, and fees are cheaper than sending money using your credit card. Moreover, when you use your credit card to send money abroad, you can accumulate debt or incur interest charges, especially if you cannot pay your bill on time.
Tip 3: Send money early to avoid premium “last-minute” fees
Some remittance service providers charge “last-minute” or rush transfer fees. To avoid paying these, it is better to plan your transfers and send them ahead of time to ensure that your recipient will promptly get the funds in time for the holidays.
Tip 4: Compare total costs (transfer fee + exchange rate)
Send money remittance service providers have varying transfer fees and exchange rates. To maximize your money’s potential, it is best to consider both the transfer fee and exchange rate used by your chosen provider. A “live mid-market rate” is often the benchmark used; however, some providers mark up their exchange rates to earn profit from your transactions.
Conclusion
Sending money during the holidays is one way to show a spirit of camaraderie, generosity, and appreciation for culture. While the holidays are busy due to festivities and other activities, sending money should not get in the way of making you enjoy the cheerful spirits of the holiday. Moreover, sending money during the holidays is possible without paying extra fees. To do so, you must plan, compare rates, and choose the best money transfer service provider. If you are residing in Canada, the best option is RemitBee
