While studying abroad is an exciting opportunity, being an international student in a new country has its anxieties. You might be concerned about settling in, making new friends, and managing your finances. It is common for international students to struggle with delayed transactions, unfair exchange rates, and exorbitant bank charges. These mistakes are not only frustrating but can also eat into your finances.
This is why we have curated this list of top mistakes international students make with money transfers and how you can avoid them.
Also read: International student money hacks: Budgeting in multiple currencies
Many banks and payment solutions may try to play a fast one on you by including hidden charges in the transaction fees. They will tell you they charge low fees, only to deduct more than the amount they claim they’d charge. They might hide under the guise of markups on currency conversions, intermediary bank fees, or even receiving charges. Over time, these small amounts accumulate, reducing the total amount received. Students should always check the total cost of a transaction, including the exchange rate margin, before sending money.
While it is unlikely that you can do without international banks, it is a mistake to rely solely on traditional banks for your transactions. They are expensive, slow, and tend to offer unfavourable exchange rates. Digital international payment solutions and remittance platforms are some alternatives you should explore for seamless cross-border transactions.
Some payment services may not be regulated or recognised by the relevant. They are usually prone to security breaches and increased risk of scams. If you ever fall victim, you are likely to be on your own, as they have no authority overseeing them. Only opt for verified and regulated payment platforms to avoid sob stories.
Many international students aren’t aware of the holidays in their new country. Transactions are usually delayed on bank holidays. These delays can be frustrating, especially when working with a tight timeline or in emergency situations.
This is particularly important for people with volatile local currencies. Exchange rates can fluctuate rapidly, affecting the total cost of a transfer and your financial plan and budget.
Not cross-checking the recipient’s details is like crossing a busy road blindfolded. A simple typo in account numbers, SWIFT codes, or recipient names can derail a transfer, causing delays, returned funds, or even permanent loss. This is particularly risky for large sums, such as tuition payments. You might get charged for reversal fees for such errors, not to mention the administrative headaches.
Also read: Affordable European universities for international students
International money transfers are essential for students abroad. Avoiding these common mistakes can save significant time, money, and hassle. Here are some tips on avoiding errors when transferring money as an international student.
International students often have to deal with cross-border payments. By looking out for reliable payment options, planning ahead, and staying vigilant about fees, you can avoid costly mistakes when making transfers. Grey is an efficient digital payment platform, offering affordability with low transaction fees, no hidden charges, and competitive exchange rates. The platform is regulated by leading finance regulatory bodies in the US and Canada with strong security features.
Sign up on Grey today for seamless and safe international money transfers.
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