British people spending too much transferring money overseas, survey suggests

by Ray Clancy on April 21, 2011

Brits spending too much on money transfers

British expats, their families and friends are paying an average of £20 per transaction when sending money overseas in bank fees and charges, it is claimed.

Overall British people waste over £300 million in such fees and charges annually, according to a survey by Travelex. Over a third of those questioned, 35%, transfer money as often as four times a year.

Some three fifths, 59%, of those questioned as part of Travelex’s study said that transferring money abroad is currently too expensive, and nearly two fifths, 38%, are not confident of getting the best deal with existing providers.

It also found that almost half, 43%, of all money sent overseas is transferred via the high street banks, which can charge customers up to £25 for a five-day transfer.

With over half of the respondents making transfers of £100 or less, the research revealed that Brits are paying up to a quarter of the transaction value in fee charges every time they send money overseas.

And for nine out of 100 respondents, it is likely that the cost of the transfer was more than the amount of money being sent abroad than the bank fees and charges annually.

Nearly four in ten, 37%, of those questioned are concerned that their money could get ‘lost in the system’. While nearly one in ten, 9% have transferred money abroad that has failed to arrive.

British people transferring money to the United States, France Spain and Germany are the worst affected. The reasons for transferring money include maintaining a property abroad, paying for gifts for Christmas, mortgage payments and helping a friend or family member in an emergency.

In response to these concerns Travelex has launched its Send Money Now service whose fees start at 99p. It has also started its Travelex Delivery Promise, which guarantees payment delivery within either a two or five day timeframe. In the unlikely event that the payment does not arrive on time, Travelex will refund the cost of the transfer.

’Brits who want to send money overseas have traditionally been forced to pay up to £25 each time. It’s about time that they had another option. When our customers told us that they wanted a simpler and more cost effective way of sending money abroad, we came up with Send Money Now,’ said David Sear, global managing director of Travelex Global Business Payments.

‘A transfer costs as little as 99p and we also guarantee delivery.’ It’s safe and secure, and with no registration required, money can be transferred anywhere around the world in four easy steps,’ he added.

{ 1 comment… read it below or add one }

qainat November 10, 2011 at 3:27 am

Travelex hits you with high exchange rates – they're not fooling anyone.

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