3 Strategies to Save Money on Cross-Border Payments

Navigating the world of international transfers can be expensive, but digital innovations are revolutionizing the game. At PassCash, we're here to help you save money with insights from financial experts. Discover three smart strategies to reduce costs on cross-border payments:

Save Money with Digital Payment Platforms

Over the years, I've worked with a range of businesses and noticed a significant difference between using digital payment platforms versus traditional banks for international transfers. The savings are often substantial, and the process is far more efficient.

Traditional banks can charge hefty fees for international transfers, sometimes as much as $30 to $50 per transaction. On top of that, they often offer poor exchange rates, which means you're losing even more money in the conversion process. In contrast, digital payment platforms like Wise, PayPal, or Revolut tend to offer lower fees and far better exchange rates. For example, we've used Wise to send payments across borders, and we've saved up to 2-3% on each transaction compared to banks. This may not sound like a lot, but over several transactions, it adds up quickly.

One tip for avoiding high exchange rates and transaction fees is to always check the mid-market rate before making a transfer. Digital payment platforms often give you access to this rate, which is the real exchange rate without a markup. For example, Wise offers a live rate comparison so you can see exactly what you're getting. If you're transferring large amounts of money, this small step can save hundreds of dollars over time.

By using digital platforms instead of traditional banks for international transfers, businesses can save on both fees and exchange rates. By paying attention to the mid-market exchange rate, you can further maximize your savings. Over the past year, I've saved an average of $300 per quarter just by switching to digital payment platforms and being mindful of rates, which makes a significant impact when scaling a business.

Chris Bajda, E-commerce Entrepreneur & Managing Partner, GroomsDay

Use Timezone Arbitrage for Better Crypto Rates

I stumbled upon this hack after years of international crypto transactions—most people chase the lowest visible fees but completely miss the "timezone arbitrage" sweet spot. I discovered that executing crypto transfers at 2:30 AM EST on Tuesdays consistently yields 12-15% better rates due to lower network congestion and the natural lull between Asian market close and European market open. 

Testing this with over 200 transactions, I found that gas fees drop by up to 60% during this window while exchange rate spreads tighten significantly. Last month, I saved $347 on a $5,000 transfer simply by scheduling it during this dead zone instead of peak hours. The traditional finance world's rigid schedules create predictable cost bubbles that crypto's 24/7 nature lets you sidestep—all you need to know is when to strike.

Ruben Remy, Founder, AllCryptoWallets.org

Monitor Exchange Rates for Optimal Transfers

Digital payment platforms have drastically changed the outlook of international money transfers with their affordable solutions compared to traditional banks. With broad experience in cybersecurity, combined with digital ecosystems knowledge, I can provide insight into how such platforms offer financial benefits and one key tip for users to minimize costs.

In international transfers, traditional banks usually charge high fees due to the larger number of intermediary institutions and outdated processes involved. On the other hand, digital payment providers use technology to make cross-border transactions easier. Most of them offer lower fees by reducing intermediaries and using more efficient infrastructures like blockchain or peer-to-peer networks, which reduce costs that would otherwise be transferred to consumers.

These platforms often enable real-time transactions, eliminating the long waiting associated with traditional banks, hence cost and time efficiency.

With a background in OT Security and as part of my role as a cybersecurity architect, I understand how security plays a very key role in digital financial transactions. Digital platforms often have very advanced security protocols and encryption technologies that protect users' data and funds, thus making them cost-effective and inherently secure.

When it comes to cross-border transfers, monitoring exchange rates is important. Here's a practical tip: take advantage of the so-called rate alerts provided by any financial technology platform through different tools or apps. That will notify you once the exchange rate fits your desired threshold, ensuring transactions are conducted at optimal times and with minimal fees.

Besides that, the comparison of the offered digital platforms includes selecting those offering mid-market rates or what could be called the "true" exchange rate. Besides, users are advised to beware of hidden fees; a check of the terms of service may show additional costs that had not been obvious at the beginning.

Being a cybersecurity professional deeply involved with the technological evolution in financial services, I realize that among all alternatives, digital payment platforms are a very promising option for cost-efficient international transfers. Users can maximize their savings by opting for platforms known for transparency in exchange rates and fees while ensuring robust security against potential cyber threats.

Rupesh Shirke, Operational Technology Security Architect