Best ways to avoid unfavorable exchange rates

Avoid unfavorable exchange rates

When you are sending or receiving money from another country, you will have to deal with the exchange rates for the funds involved, no matter what. Whether you will have to add more or less money for the amount you are sending to add up to the amount agreed upon depends on the day’s rates for exchanging currencies. Sound financial planning is necessary for you to get the best exchange rates.

What are exchange rates?

When using payment methods, like this, to send money to different countries, you first have to understand precisely what exchange rates are. They are the amount one currency is changed to another. For example, the amount of a US dollar is different from the amount of a Euro. So if you are planning to send 50 Euros to somebody in Europe, you will have to spend roughly 55 US dollars to compensate for the exchange rate. While the international exchange rates for currencies are the same, the actual exchange rate amount varies with the method you choose for sending or receiving funds.

How will you be able to avoid unfavorable exchange rates?

Research. One of the best things to do for you not to get ripped off with exchange rates is to know precisely how much these are. If you have an idea of roughly how much the change of currency will cost you, then it is less likely that you will go for the money transfer solution that will charge you more for the exchange rate than you should. Take note that different online payment solutions have different exchange rates than your bank or with other services offline and online. It is merely a matter of choosing the online payment service that has the most competitive exchange rates.

Check online payment solutions. Most of the time, sending or receiving money through your bank or a money transfer service will cost you more when it comes to converting currencies. This, on top of the transaction fees, can make you lose more money that you want to. The best way to avoid higher exchange rates is to check online payment solutions. They usually have lower fees for transactions and have fairer exchange rates. Most payment services also have their own currency converters for you to be able to check exactly how much you will have to add or deduct from the amount you have to send to match with the amount the recipient will get in their currency.

Compare exchange rates. Since there are currency converters available with different advanced payment solutions, the best thing to do is compare the exchange rates. Even if most of the payment services online have more competitive exchange rates, there will be some that will be lower than others. You should be able to compare the different rates through their converters so that you can choose the payment solution that is more affordable for you. This way, you can stick to that online payment service for the long haul since it is more likely that they will continue to have great exchange rates in the future.