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What are the remittance fees worldwide?
The global average rate is 7.40%, but it really depends if you’re looking by country, type of provider, or form of payment.
Global average vs. weighted
And this is low compared to rates in 2009
Notice the trends in commission rate between Q1 2009, Q3 2016, and Q4 2016. Fees in the 0-5% range have been on the rise, and although those in the greater than 20% range have diminished since 2009 they are higher than last quarter.
Measuring rates if consumers were SmaRT
|Quarter||Global SmaRT average||Difference between global average|
Qualifying as a SmaRT provider is not always possible
- In Q3 2016, 54 of the 365 corridors had less than 3 qualifying providers
- In Q3 2016, 9 of the 365 corridors did not have any because they did not meet access criteria
What country you are sending money to/from affects commission rates
Due to regulations, taxes, international relations, and competition of money transfers in these countries the amount you’ll pay sending money to and from countries changes.
Remittance commission rates in the G8 countries
Compare Canada, France, Germany, Italy, Japan, Russia, UK, and US average cost of sending remittances from these countries.
What about the average cost of remitting from G20 countries?
Sending money from Australia, Canada, Japan, and South Africa were above the global average with South Africa’s average rate being more than twice that. The majority other 16 countries had rates below the global average.
And the cost of sending remittances to the G20?
From 2009 to 2013, the cost of sending USD 200 to G20 countries was above the global average. Since then, the spread has narrowed with the G20 rates dipping below the average from quarter to quarter. Overall, both global average and G20 average has significantly decreased since 2009.
Let’s break it down by region of the world
EAP = East Asia Pacific, ECA = Europe & Central Asia, LAC = Latin American and Caribbean, MNA = Middle East & North Africa, SA = South Africa, SSA = Sub-Saharan Africa
Now method of money transfer makes a big difference
The form of payment or instrument also matters when sending money
The form of payment on the receiving end also matters.
Who should you send money with?
As you can see there are a lot of factors when sending money overseas to consider. It’s unfortunately more confusing than it should be, but we’ve been through it too. The finder.com Money Transfer Awards actually sent transfers, generated quotes, and conducted usability testing to find out which providers had the Best Transfer Rates, Fastest Transfers, Best User Experience, and were the Most Trustworthy and Most Convenient. To learn more about international money transfers and how to save on your transfers check out this guide. You can also compare current available rates by country here.
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