The special supplier TransferWise has developed a revolutionary concept, which reduces the fees of international transactions significantly. That annoys banking groups and helps people to save money!
Want to read the article to the end or open the website of the provider up front: www.transferwise.com?
What is expensive in international transactions?
The path of the money through correspondent banks to the abroad as well as the currency exchange.
What distinguishes TransferWise?
At TransferWise, the money stays in the country, only the payment information travels abroad.
- Anna from Germany wants to transfer money from her German current account to her US students account for her studies abroad in New York.
- Bob from Los Angeles has ordered machine parts for his company from Germany and must now pay the bill.
- Instead of using the expensive international transactions of banks, in which money is sent twice across the Atlantic Ocean, Anna and Bob try TransferWise without knowing of each other.
- Anna transfers her savings for the student life in New York to the collective account of TransferWise in Germany and Bob transfers the amount due for the machine parts to the collective account of TransferWise in the USA.
- Instead of sending money across the Atlantic Ocean, only the payment information will be sent: From the US TransferWise account, “Bob’s money” is sent to Anna’s account in New York and from the German TransferWise account, “Anna’s money” is sent to the machine manufacturer in Stuttgart.
- Therefore, there are no fees for an international bank transfers, because these are free or low-cost national bank transfers.
However, a small fee applies, because TransferWise operates the national pool accounts and ensures with a sophisticated computer system that all national payments are made and match the international payment information.
For small transactions, the fee is only Euro 1, but increases with the transfer amount, since a larger number of “swap partners” must be found for larger transactions.
Until Euros 2,000, TransferWise wins any comparison for international transactions. In the USA, TransferWise even leads to up to USD 10,000, despite the volume-based fees.
TransferWise – multiple test winner
That TransferWise manages this process excellently, was proven by our own test transfers to the USA, Poland and the Czech Republic (linked pages in German language). On top of that, TransferWise was the test winner in all three test series!
Is TransferWise complicated?
No! At least not for us customers, who want to transfer money abroad. The really demanding task is the bundling and separating of the many national and international transfer information, but this is done by the TransferWise computer.
Example: England – Italy
In this English-speaking clip, the system of TransferWise is demonstrated:
Example: Euro-area – Poland
For better detail, we show you the illustration of our article international transaction to Poland:
Trying and appreciating advantages …
At best, try TransferWise for yourself. You will find how easy TransferWise really works. Before you sign up for free at TransferWise, please read the following benefits:
- extremely favourable international transactions to many countries and many different currencies
(and there are more to come every year)
- direct payments to the bank account of the beneficiary abroad
(on average just as fast as or even faster than a bank transfer)
- sending money to an e-mail address is possible, if the bank information is not known
- saving of banking and contact details; the next transactions to the same contact will then be a matter of a few mouse clicks
- transparent preview of fees
- favourable fictitious exchange rates, because no actual currency exchange takes place
- free registration.
“Try it now!”
… the end of expensive fees!
Further advantages at US-transactions
US banks often charge an extra fee in the amount of US$ 10 to 25 for the credit of incoming international transactions. As our experience has shown and was confirmed by some letters from readers, the fee is waived regularly, as the payout to the US account of TransferWise counts as a national transaction.
This is a double-saving at US-transactions!
Further exciting subjects:
Images heads: Pekchar, fotolia.com