Have you ever noticed an unexplainable debit on your bank account? Especially after you have made a transfer (international or local) or received payment, sometimes transfer fees or exchange rates may be higher than you originally anticipated. These occurrences may be due to hidden fees added on to the original transfer fee or exchange rate.
The World Bank Group found that anyone sending or receiving payments to and from sub-Saharan Africa alone can expect to pay around 9.72% of the amount being sent or received in fees, with the highest sums being charged by commercial banks
Global merchants around the world lose billions annually in hidden fees when they receive payments locally and internationally.
If you own a travel agency or a global e-commerce company, multiple transfers go in and out of your business accounts daily, and some of these hidden fees do not always catch your eye, but their sum total commands your full attention.
What are some of the hidden fees one might accrue?
There are often two costs associated with sending and receiving payments globally: transaction fees and exchange rate. Transaction fees are the upfront fees that financial institutions or B2B payment solution providers charge for service, and an exchange rate is a fee that is charged to convert your funds. The hidden markups are usually added to either one of these fees.
How to avoid paying hidden fees
- Research and ask questions.
All financial institutions and fintechs ought to provide a tariff document that sets out all of their fees. It’s always worth contacting several establishments and comparing their tariff documents. Take time out to read these documents to avoid any random surprises.
2. Study your bank statements
If you own a business bank account, you would most likely have already been hit with hidden fees, have a good look through your bank statements. You may be surprised by what you find.
3. Use a reliable and secure B2B/B2C payment service
A secure and reliable B2B/B2C payments infrastructure such as Fincra helps to reduce the headaches associated with traditional banking, in many ways including not adding hidden markups to transaction fees. With the use of Fincra’s named virtual accounts in GBP, EUR and NGN, global merchants can make and receive payments globally without accruing any hidden fees.
With Fincra, you have the assurance of security, as you and your customers’ information is in safe hands.
Currently, Fincra offers online and offline payment solutions to global businesses, fintechs, institutions, and business platforms, as well as payment management capabilities for themselves and their customers across the globe.
Through our reliable infrastructure, fintech and financial institutions can scale globally and build payment solutions for the future with our easy to integrate API keys for payouts and collections, to enable them perform transactions with ease and provide their customers with a better payment experience.
Fincra also provides white-label agency banking solutions to aid financial inclusivity and bring banking services to customers at the last mile. Through our infrastructure, financial institutions and businesses are able to provide banking solutions to their customers at their convenience.
You can give our products and services a quick spin by signing up for a demo at: https://sandbox.fincra.com/auth/signup