Banks versus money transfer companiesCéline and her husband are expanding their business from New Caledonia to New Zealand. They want to set up headquarters in both countries and will need to transfer money regularly, so they’re looking for the best and cheapest transfer method.
|Money transfer service 1||Money transfer service 2|
|Exchange rate||1 NZD = 65.21 XPF||1 NZD = 70.69 XPF|
|Amount received for $500||32,590 XPF||35,325 XPF|
|Transfer time||2 business days||2 business days|
|Transfer options||Online transfers, drafts||Online transfer, stop loss order, market order|
Because the transfer takes the same amount of time for each company, they opt for the second transfer service. Despite having a higher fee, their business will receive more money through the exchange, making the loss minimal.