Money Transfer Services - Why You Should Venture Beyond your Banking Relationship
Individuals and businesses often assume that their bank offers them the most affordable and effective international payment options. It's myth-busting time
20 juni 2019 — 6 min read
The XE customer care teams are often asked questions like:
“I trust my bank with my day-to-day banking needs, and on occasion, call on them to provide me with a selection of other financial services. Aren't they the best service provider for my foreign currency and international payments needs?”
This is a fairly common view of customers we speak to as they look to find a solution for their foreign exchange needs. Here, we debunk some of the common misconceptions and questions the XE team often encounter.
Photo by Jan Antonin Kolar / Unsplash
Popular misconception: Surely no one can beat bank rates?
The XE Reality: For our individual clients, the daily buy/sell rates set by the banks can incorporate a cost to transact of up to 3-5%, plus additional sending and receiving fees. At XE, we charge low fees, and provide extremely sharp rates of exchange, simply applying a much smaller profit margin when you exchange your currency.
We have relationships with many banks, yet being an independent, global service provider is an advantage. Our transfer platform is independent, we have many partnerships in the industry, and as a part of Euronet Worldwide, are part of a family of financial services providers across epay, EFT, POS, ATM and gift card transaction management.
Our highly skilled development, user experience, and technology integration teams continuously deliver new innovations across our desktop and mobile applications, and our data and transactional application program interfaces (APIs). APIs are essentially data integration points, which ensure secure, efficient data transport from one application to another.
Banks typically offer limited flexibility in their transactional fees or arrangements. XE offers forward contracts, rate alerts, market orders and mass payment options, which provide several benefits, including convenience, predictability, and savings.
The end result is that our clients regularly save thousands - or even tens of thousands of dollars - compared to what they would have received with the bank rate on offer.
Popular misconception: The banks are a safer bet because they are more strictly regulated than a money transfer business like XE
The XE Reality: The international money transfer industry is one of the most strictly regulated industries. XE would not be permitted to transact your currency unless we complied with the same regulatory requirements as the banks.
In Australasia, XE Money Transfer holds both an Australian Financial Services License and a Derivatives Issuer License issued by the Financial Markets Authority (FMA NZ) whilst also being a Qualifying Financial Entity (QFE).
In the UK, we're authorised by the Financial Conduct Authority (FCA) under the Payment Service Regulations 2017.
In Canada, we are registered with FINTRAC (the Financial Transactions and Reporting Analysis Centre of Canada) and AMF (The Autorité des marchés financiers) in the Province of Quebec.
In the US, we're licensed by the Dept of Financial Services of the State of New York, Georgia Dept of Banking & Finance and the Massachusetts Division of Banks, authorised to operate as a money transmitter in all United States jurisdictions.
Learn more about how we're regulated and protect our customers' funds.
Photo by Bernard Hermant / Unsplash
This is indisputable, with one caveat: Online banking services set the standard for data security and privacy
The XE Reality: Security, trust and credibility are three key considerations when allowing a service provider to move your money across borders. XE is committed to the privacy and security of your personal data and to meet our compliance requirements, our data security and privacy standards are comparable to bank level security.
That said, XE provides enterprise-grade security via segregated trust accounts. Our NASDAQ-listed parent company, Euronet Worldwide holds an investment grade credit rating from Standard & Poors. You are working with a well-established, compliant and global currency services which are trusted by more than 300 million people a year. You are supported by certified, knowledgeable, risk-averse foreign exchange trading and money transfer experts who are dialed in to the ebbs and flows of global currency markets.
Popular misconception: The bank has vast resources and broad financial expertise. Surely they can provide me with the best advice?
Sure, big banks employ many smart people, with deep experience about money matters. At XE, foreign currency and cross-border payments are all that we do.
At XE, our people are equipped with the skills, knowledge and technology that enables you to move your funds efficiently, securely and cost-effectively.
Photo by Austin Distel / Unsplash
Popular misconception: There’s an extra step involved dealing via a broker. Isn't dealing outside my bank an inconvenience?
The XE Reality: The perceived inconvenience factor of dealing outside of the bank relationship is another common myth.
The reality is, XE will provide a more efficient, user-friendly experience thanks to our online platform, built specifically for foreign currency and cross-border payments. The easy-to-use XE mobile app takes the hassle out of transferring money and checking exchange rates when you're travelling or on-the-go.
Plus, if you need offline support, you’ll be speaking to a helpful, responsive, and accredited XE representative.
Photo by Cory Schadt / Unsplash
Popular Misconception: There must be costs associated with opening an account, and I don’t have the time.
The XE Reality: Setting up an XE Money Transfer account is free and there is no obligation to use us - in fact, we encourage you to benchmark the rates and quality of service XE offers with your incumbent provider or bank.
Our user-friendly online platform enables you to set up a new account and transact within minutes.
Please Note:
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.
While we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible. Case Studies and articles are not intended to predict future moves in exchange rates or constitute advice.
XE makes no representations, warranties, or assurances as to the accuracy or completeness of any information derived from third party sources. If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from XE, we recommend that you seek independent financial advice first.
For more information about XE, please click here: Regulatory Information