On top of exchange rates, some of the main areas to compare when looking at your money transfer options with Savvy are:
Fees
There are three ways that international money exchange companies can make their money:
- They can charge a set fee for the transfer (up to $15), but offer the mid-market exchange rate
- They can charge a fee which is a percentage of the transfer amount (typically from 0.4% to 0.65%) plus a small margin on the exchange rate
- They may not charge a fee at all but add a higher margin onto the exchange rate
Any of these options will probably prove to be cheaper than using your regular bank, as banks routinely charge higher fees plus a greater markup on the exchange rate. When comparing transfer providers, look for one that has the lowest fees for the sum you wish to transfer and which offers an exchange rate as close to the mid-market rate as possible. Most often, set fees are the most economical option for larger transfers of $5,000 or more, while percentage charges are the cheapest for smaller transfers.
Transfer limits
Transfer companies often have minimum and maximum transfer limits. Minimums range from $1 up to $250, while maximum limits range anywhere from a daily limit of $5,000 up to maximums of $500,000 or more.
Payment methods
Decide how you wish to pay for your transfer from Australia to Japan. You can choose between paying by direct debit from your bank account or using a credit card. However, the latter could be a very expensive option, as credit card providers can charge transfer fees as high as 3% to 5% of your transfer amount.
Alternatively, you could use your debit card with EFTPOS, BPAY or PayWave. You could also choose to send your money using a digital wallet such as Apple Pay or even hand over cash if you’re arranging an instant cash transfer in person. Which payment method you choose will determine which transfer company is best for you, as not all companies will accept all payment options.
Receival methods
Think about how you want your transfer to be received in Japan. Do you want it transferred to a bank account, collected in cash, or paid into a mobile app or digital wallet? If your recipient doesn’t have a bank account, you could even send a mobile phone recharge directly to their phone, although this would mean they couldn’t use the transfer in cash. When comparing transfer services, check that they offer the method you’re after.
