How to Avoid Hidden Fees on Money Transfers

The money transfer industry has a dirty secret: most of the cost is hidden in the exchange rate, not the fee. Here's how to spot and avoid hidden charges.

The 5 Places Fees Hide

1. Exchange rate markup — The biggest hidden cost. Compare the offered rate to the mid-market rate on Google.
2. Card processing fees — Some providers charge 1-3% extra for card payments.
3. Receiving fees — Charged by the recipient's bank, especially for SWIFT transfers.
4. "Correspondent bank" fees — Intermediary banks can deduct fees in transit.
5. Inactivity fees — Some services charge if you don't use your account regularly.