Sending money abroad from South Africa (SA) is becoming increasingly expensive, with many consumers unaware of how much they are actually paying once hidden charges are factored in.
Harry Scherzer, Chief Executive of international money transfer firm Future Forex, says bank exchange rate mark-ups, currency volatility and processing delays are quietly reducing the value of overseas transfers. The impact is being felt by families supporting relatives abroad, investors moving capital offshore and businesses settling international payments.
“When people go to a bank to move money overseas, the fee they’re shown is only a small part of the real cost,” Scherzer said. “Banks are upfront about the processing fee, which is usually between R500 and R1 000 ($27–$55). What they don’t highlight is the exchange rate being applied compared to the actual market rate. That difference is where a lot of money is made.”
Scherzer urged consumers to look beyond headline fees and compare exchange rates when transferring funds internationally, warning that even small differences can add up to significant losses over time.
–ChannelArica–
