Can Prepaid Money Transfers Save You Money ?
Prepaid Money Transfers
Prepaid credit cards – The new way to do international money transfers. Send money overseas quickly and economically!
Prepaid cards can be a great cost effective way of transferring money overseas. It’s simple to add an additional card to your selected prepaid account, which may be sent to a relative or friend outside of the UK. The account can then be re-loaded with cash in the UK (via the Post Office for example), and funds can be withdrawn instantly abroad, in the local currency. ATM and foreign transaction fees apply, but depending on the transfer amount, it’s likely to be quicker and cheaper than most mainstream money transfer services!
How much you could save using a prepaid card?
How much cheaper could an international money transfer be using a prepaid card, over a traditional money transfer bureau?
Well, we have done the sums for you, so check it out for yourself!
Imagine you are working in the UK, and want to transfer cash back to your family in Zimbabwe. You could use a money transfer service such as Western Union, which would charge a fee of around £22 to transfer £200.
However, if you used a prepaid credit card to transfer money, it would cost you much less. Up to 30% less in fact!
For example, a Cashplus MasterCard would charge you a fee of £3 to withdraw the cash at the ATM in Zimbabwe, and a further £5.50 foreign transaction charge. So, you would be charged an overall fee of approximately £8.50, a saving of around £13.50!
Of course, your family member in Zimbabwe does not have to use the ATM! If they were to use their card on the high street, the ATM fee would not be incurred.
The following table provides you with details of some of the cost savings that you would be making on international money transfers.
|Organisation||Amount of Transfer||Transfer to||Cost (fees)||Saving against Western Union|
|Western Union Money Transfer||£500||Polish Zloty||£37.00|
|Cashplus MasterCard Prepaid Card||£500||Polish Zloty||£16.75*||£20.25|
|i-money Prepaid Maestro||£500||Polish Zloty||£20.85**||£16.15|
* Fees include Foreign transaction charge of 2.75% and a £3 ATM fee
** Fees include a 4% fee charged on the initial load and an £0.85 ATM fee
All above figures based on data as at October 2007
What Fees am I Charged?
Western Union - Will charge you a one-off fee, depending on the amount that you want to transfer. But, the exchange rates used may also be uncompetitive compared to the rate that you receive on a prepaid card from Visa or MasterCard. This can result in even higher charges.
Cashplus Prepaid MasterCard – Will not charge you to reload your card, but will charge a fee of 2.75% when the money is withdrawn plus a fee of £3 to withdraw the funds over the bank counter or ATM. Fees quoted are based on their flexiplus product.
i-money Maestro card – Will charge you a fee to load money onto the card in the UK of up to 4%, but will only charge you a withdrawal fee of £0.85, plus will not charge you a foreign withdrawal fee.
International money transfer fee Summary
Prepaid credit cards WILL save you money on international money transfer. You will also receive a much better currency exchange rate when using a prepaid card, which will save you even more. It is well worth considering a prepaid card over a traditional money transfer service.