High currency exchange fees: what’s the alternative?
POSTED ON: 31 Jul, 2018
If you are planning your next holiday abroad, if you travel often and if you lived in different areas, chances are you have already thought about currency exchange and the way it wastes your money. Every time you need to change some money, your bank applies fees, which in many cases are ridiculously high.
The rate, which the banks pay while trading with each other, is called the “inter-bank” rate. Is it the “true” exchange rate, but you are given a different one, as the banks make a margin on top of that. What usually happens is that you as a client are not able to see the fee applied to you. The only information, which is presented to you, is the amount of foreign currency you received after exchanging the funds.
If you need to withdraw your funds, it can even get worse. You will be charged for currency conversion, and then might get an extra fee for withdrawing from ATM and after that even be charged for foreign currency withdrawals. So at the end trying to have some cash in a foreign country might cost you a really significant amount.
What seems to be a great solution to foreign exchange issue with banks and overpriced exchange rate is using fintech services. Financial technology companies usually offer amazing alternatives to conventional banking. In many cases, they have a completely different approach and are client focused instead of being concentrated on short-term profit only. Companies such as SatchelPay realise that traditional foreign exchange model leads to significant overpaying. In SatchelPay we not only attract customers with much lower currency exchange fees but also offer great range of other options, like convenient and easy to use international prepaid cards, which will simplify your financial operations abroad even more. Do you want to find out more? Get in touch with us now.