* Note: calculations do not include transfer fees. Exchange rates aren’t necessarily representative of current market rates.
Fees
Next, look at the fees being charged to transfer money. 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, such as OFX)
- They can charge a fee that is a percentage of the transfer amount (typically from 0.4% to 0.65%)
- They don’t charge a fee but add a higher margin onto the exchange rate
Any of these charging methods will probably be cheaper than using your traditional bank, as banks charge higher fees plus a greater markup on the exchange rate. When comparing transfer providers, look for one which has the cheapest fee structure for the amount you wish to transfer and which offers an exchange rate as close to the mid-market rate as possible. In general terms, set fee charges are the best for larger transfers and percentage charges are more economical for smaller transfers.
Transfer limits
Some companies 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 $50,000 all the way up to $500,000. Make sure your provider can facilitate the size of transfer you need to make to Pakistan.
Payment methods
Decide how you want to pay for your transfer from Australia to Pakistan. You could pay by direct debit from your bank account. You could use a credit card, although this is often an expensive option as your credit card provider could charge you high transfer fees of 3% to 5% of your transfer amount. Alternatively, use a debit card with EFTPOS, BPAY or PayWave. You could also choose to send your money using a digital wallet such as Apple Pay or in cash. Which method you choose will also determine which transfer company is best for you, as not all companies will accept credit cards or Apple Pay.
How your money will be received
How do you want your transfer to be received? Do you want it transferred into a bank account, collected in cash, or paid into a mobile app or digital wallet? A transfer from one bank account to another is the cheapest option if you want your recipient to be able to access the transfer as cash. When comparing, check the transfer service you choose offers the transfer method you’re after.
