What a money transfer from abroad really costs

“No fee” does not mean free. The main charge is often hidden in the conversion rate — here is how to find it.

For many families in Uzbekistan, Kyrgyzstan, Tajikistan, Armenia and Georgia, transfers from relatives abroad are an important part of the budget. At the same time, different ways of sending the same amount can leave the recipient with noticeably different results. The difference almost always has two parts.

Part one: the visible fee

This is what the service prints in large type: a fixed amount or a percentage of the transfer. It is easy to compare, which is exactly why services like to compete here — right down to the “0% fee” label.

Part two: the conversion rate

If money is sent in one currency and received in another, an exchange happens somewhere along the way. The service does it at its own rate, and that rate is almost always worse than the market rate. The difference between them is a fee as well, only an invisible one. It happens that a “no fee” transfer ends up costing more than one with an honest fee and a rate close to the market rate.

How to compare fairly

Look at one number: how much the person on the other end will receive in their own currency. Take the same amount, for example 500 dollars or 50,000 roubles, and check the final amount to be received in several services. Then divide the amount sent by the market rate — that gives you what would arrive with no losses at all. The difference between these two numbers is the full cost of the transfer. You can take the market rate for the comparison from our converter.

What else affects the result

Cash pickup and a deposit to a card often use different rates. The recipient's bank may charge its own fee for crediting or withdrawing. Payout in dollars and payout in the national currency also differ: if the recipient needs local currency anyway, it is sometimes better to receive dollars and exchange them yourself, and sometimes the opposite. The only reliable way to find out is to calculate the final amount for your specific case.