The concept of hidden fees can be applied to many different industries but it has an essential function in the finance industry. The financial concepts are so complex to understand that many people refuse to calculate anything and prefer not knowing that they get screwed. I want here to explain why there are hidden fees in the money transfer industry and try to be as simple as possible to tell you how it’s easy to calculate hidden fees in your money transfers services.
Why do hidden fees exist in money transfers?
First of all, hidden fees are fees that are included in the exchange rate that is applied. You are not told that there are fees but there are. Usually when there are advertisements which are false in the supermarket industry, they get banned and have to pay fines. Here in the financial industry there is no rule preventing the banks and financial institutions to screw people with high fees that are hidden. Money transfers is still a market that is mostly powered by banks and we know how much power the banks have over the regulations, the governments and the countries. That’s my why.
How to calculate hidden fees in my money transfers?
The amount of hidden fees in an exchange rate is the difference between the official exchange rate you can find on google or reuters and the one that is provided to you by the financial institutions. For money transfers to Africa those hidden fees reach 20% even in the US and in Europe.
There is another very efficient method to calculate hidden fees. You have to look for a hidden fees tracker on google search, you’re going to put the current operator you are using (even your bank) and the calculator will make sure you know how much fees you pay.
It’s completely unfair that there are hidden fees in the money transfers today. However they exist and the best way to fight them is to figure out how much fees you pay on money transfers. Then you can choose another money transfer company thanks to any comparison service.