Curbing costs of sending money

SOPHIE ELSWORTH

CONSUMERS are being served up cheaper and more enticing options for sending money overseas as the foreign exchange market heats up.

Being slugged hefty transaction charges to move overseas is a hit to the pocket felt by many, but experts believe customers who hunt around will find new, cheaper options rolling on to the market.

The Currency Shop’s director Justin Rampono says transfer fees to move money overseas can range anywhere from $10 to $32.

“One of the biggest issues for the market is the flat fee that you pay (to send money overseas) regardless of the exchange rate and it’s usually high,’’ he says. “Some banks charge $20 for an international money transfer and if you are doing it in a branch it can cost $32 – these charges are not really that unusual.”

He says this fee is acceptable if you are transferring large sums of money, but is excessive for consumers regularly sending smaller amounts of a few thousand dollars.

Westpac has expanded its online money transfer service LitePay, which allows international payments to be now sent to 19 European countries, Great Britain and India. Customers can move Australian dollar amounts of up to $3000 per day and the charges to do so range from $5 to $8 per transaction.

The bank’s head of consumer foreign exchange Kim Merlo says it’s a costsaving way for customers to move money abroad.

When it was first rolled out in August, it allowed customers to transfer cash to the Philippines and the average amounts of money sent were between $750 and $1000.

However, Rampono urges customers not just to focus on the fee for sending money, but to also look at the exchange rate to make sure they are getting good value.