How to transfer money abroad before the holidays: where the biggest losses in exchange rates occur
December and early January are peak periods for payment systems, creating certain risks for Ukrainians planning to transfer money abroad. The costs of transfers can vary significantly depending on the chosen payment system, and it is important to understand what fees and exchange rate losses may arise to avoid unexpected expenses.
The commission of the Ukrainian bank for the transfer can range from 1% to 2%. However, especially in the case of double conversion, exchange rate losses can reach 3-7%. This represents a significant financial risk, especially during the holiday season when the volume of transfers increases.
Options for transferring money
Among the options for transferring money abroad, SEPA (Single Euro Payments Area) is the cheapest solution for transfers in euros. The fees when using SEPA can be minimal or even zero, and the money usually reaches the recipient within 1-2 days. However, it is worth noting that Ukraine is not yet a full member of SEPA, which may affect the availability of this service for some users. Among banks that work with SEPA incoming payments, we can highlight:
- monobank
- A-Bank
- Kredobank
The SWIFT system is the most expensive solution for international transfers, and it is optimal to use it only for large amounts — starting from $1000. The cost of transfers via SWIFT often exceeds other options. For small amounts, it is recommended to use fintech applications such as Wise, where the commission ranges from 0.3% to 0.5%. Another popular option is PayPal, but the markup on the inherent exchange rate in this system may range from 2.9% to 4.4%.
Thus, when planning transfers abroad during the holiday season, it is important to consider possible expenses. It is recommended to use fintech applications for small transfers (up to $500-1000) and choose SWIFT or SEPA for large amounts (from $1000). The right choice of payment system can significantly save money and avoid unnecessary expenses.
In light of the growing demand for international transfers during the holiday period, it is important for Ukrainians to be aware of possible expenses on fees and exchange rates. Since rates can vary significantly depending on the chosen payment system, knowledge of alternatives such as SEPA and fintech applications can help save money. Given that holiday periods are usually accompanied by increased loads on payment systems, it is important to plan transfers in advance to avoid delays and additional costs.