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Photographed by Annie Spratt

What is an International Money Transfer?

An international money transfer is when money is sent from an account based on one country’s banking system, to another account based on another country’s banking system.  Each country has its own currency and banking system.

An international money transfer can be completed by an individual sending money to another individual or to a company, or by a company sending money to another company or to an individual.  Happy so far?

An international money transfer is not to be confused with a payment made via a debit or credit card.  An international money transfer is a transaction which does not involve cards.

International Money Transfers Involve Foreign Currencies

International money transfers tend to involve an exchange of currency, for example, an account based on England’s banking system can be expected to make payments in the Great Britain Pounds [GBP] currency, but to receive an amount sent in GBP within an account that manages United States Dollars [USD], the amount sent in GBP must be converted into an equivalent amount of USD.

International Money Transfers Usually Cost Money to Complete

Different banks charge different amounts for completing international transfers, but there’s a general pattern.

So what do I mean by “Little Cost”?  Let me explain …..

You see, typically, international money transfers are overseen by banking organisations, where banks consider this type of transaction as being “a service”, and they charge their customers for providing this service.

So when I say “Little Cost” I mean in comparison to the charges that would be received for the same transaction if it had been overseen by a regular bank. The table below confirms the minimum expense for sending 250 GBP to a USD bank account online from England:

Bank NameCharge per Transfer [online]Other Transfer ChargesTransfer AmountMinimum Expense
High Street Bank 1£4 (free if in Euros to the EEA or to same brand account)Free to receive if less than £100 value, £8 if not in Euros or over £100 in Euros coming from outside the EEA£250£254
High Street Bank 2£25 (£15 if in Euros to the EEA)Free to receive electronic international transfers£250£275
High Street Bank 3£25 (£0.20 if in Euros)Free to receive electronic international transfers£250£275
High Street Bank 4£9.50 (free if in Euros)£12 (zone 1) or £20 (zone 2) and £2 for receiving less than £100; £7 if receiving more than £100 (foreign currency)£250£259.50
Barclays Bank£0£6 to receive if not Euros from the EEA£250£250
High Street Bank 6£9.50 (free if in Euros)£12 (zone 1) or £20 (zone 2) and £2 for receiving less than £100; £7 if receiving more than £100 (foreign currency)£250£259.50
Little Cost IMTNo chargeNo charge£250£252.43 (actual cost)
The information in the table above was correct on 8 August 2020.

The Different Kinds of Charge

When regular banks are providing their services they have at least two charges that they apply.  One of the charges will be a standard charge for the transfer, and this will be a fixed amount regardless of the amount that you are transferring.  As well as the standard transfer fee they will also include a charge to cover the conversion of currencies, like from GBP to USD for example, and that charge will involve the current exchange rate for the specific currencies.

Other charges to notice from regular banks are a charge for receiving an international money transfer, as well as an additional charge for sending money (sometimes called a correspondent fee).  Banks like to charge either the sender or the recipient of an international money transfer in addition to the standard transfer fee and sometimes it is possible for the cost to be shared.  It’s an issue which potentially affects the amount of money that is to be received.

You can find that regular bank accounts usually send and receive money in the currency of the country’s banking system.  So in France where the currency of the banking system is EUR (Euros), money is sent and received in Euros.  In Switzerland where the system’s currency is CHF (Swiss francs), money is sent and received in Swiss francs.  I could continue.  It is not impossible for banks to permit their customers to send and receive money in currencies other than their banking system’s currency, but banks tend to see this as offering “a service” to their customers, and it is often a service for which there are charges.

How This Service Provider Came About

The service that I would like to introduce you to was thought about and developed by two hard working friends that worked internationally from where they had bills to pay.  What they were noticing was the amount they were spending on banking fees.  So they devised an alternative system that would cost less.  Realising how beneficial their idea could be for others, they went about making it available to the rest of the world.

Today the system they devised is trusted by over 8 million customers worldwide, it transfers £4bn per month and saves £3million in bank fees each day.

Special Features of the Service

A special feature of the Little Cost International Money Transfer service I am referring to is the ability to set up local bank accounts based on the banking systems of different countries. For example as a resident of England, by having a local USA account, if I need to receive money from an individual or a company in America then I need only provide them with my local USA account details, and the money will be received there, saving on the range of potential banking fees from a transfer.  Similarly if I have a local account based on the European Union’s banking system.

The local international bank account is a special feature that is available to individuals and to companies.

Another convenient feature is a debitcard that can be applied for.  A debit card helps to prevent the need to transfer, so that cardholders can spend online and save.

Another convenient feature of the Little Cost International Money Transfer service is a smartphone app.  With the app you can manage and track your transactions from your smartphone at anytime.

An Enjoyable Service

The Little Cost International Money Transfer service is easy to use, simple to understand, the customer service team is friendly and helpful and the organisation is regulated by England’s Financial Conduct Authority so that the business of customers can be noticed from an independent view if necessary.

I like the service because I know it’s a saving on what the banks would charge, but especially because all the important information like the send-amount, the recipient’s amount, the exchange rate and the fee for the transfer, are all made clear before making a transfer, so that I know exactly how much I need to transfer and all associated costs before making a commitment.  I also like that the service has been designed for personal use as well as for business – this is a very special service being based on brilliant ideas.

My Recommendation

To notice the less costly service provider please notice the information below If you like the sound of the organisation’s service and would like to make a money transfer with them, please notice the information below.

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Little Cost International Money Transfer

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