Sending money to another part of the world is not always as easy as it looks. If you go through your bank, you might be charged with insane fees that really make the entire transaction not worth your time nor money. Thankfully, there are plenty of financial institutions that are dedicated to making sure you can send money to Brazil easily and inexpensively. However, on top of standard charges and service fees, be on the lookout for these 3 additional hidden fees and charges, as they can easily eat up a huge chunk of the money you're sending.
Reasonable Exchange Rates
When sending money to Brazil, you should consider when your U.S. currency will be converted to Brazilian Real. Most of the time, the money transfer companies providing these financial services will be the ones dictating the exchange rate for the currency. Make sure that the exchange rate is reasonable and close to what banks and other financial institutions are offering.
Although the exchange rate between U.S. currency and Brazilian Real will fluctuate on a daily basis, you can expect some consistencies. For example, the average exchange rate in 2015 was 1 U.S. dollar for approximately 2.643 Brazilian Real. Be on top of what the current exchange rates are, as a severe percent loss can actually eat up a huge chunk of the money you are sending. Most money transfer services offer better rates if larger sums of money are being sent.
Fees for Withdrawing or Getting the Money
When sending money to Brazil, you should determine how the money transfer service will be handling your money. In particular, you want to determine how the recipient will be able to receive the money. Some money transfer services will offer you several options. The money you send will either be deposited in a Brazilian bank account for the recipient, or the recipient will be able to go to a local office and pick up the cash.
Regardless of which method is being chosen, you really need to be wary of whether any additional fees will be charged for receiving the money. For example, if the money is being send to a Brazilian bank account, you need to consider whether an international transaction charge will be applied. On the other hand, if the recipient is going to pick up the money from a local office, you need to consider whether there are any processing fees that would be applied at that time as well.
Expected Time for the Transfer to Arrive and Late Fees
Another component that most people don't consider as much is the length of time that it is going to take for the money to arrive. While this may not seem like a big deal to you at the time, long transfer times may cause you to accumulate late fees if you are sending money to pay a bill. This means you'll be sending extra money later on to cover the late fees, and, as such, you technically are paying a lot more than you might actually have to.
Be careful to determine whether the transfer time and approval time is for a certain number of days or a certain number of business days. If the transfer time provided is for business days, make sure you account for the weekends and holidays as well when determining when is the latest you should send the money.
Sending money to Brazil can be a piece of cake with all of the various money transfer services that are available. Generally speaking, once you set up an account at the money transfer company, subsequent transfers can be achieved within minutes. For more information, talk with a money transfer service, and make sure to be aware of certain fees and considerations to be aware of and avoid if possible.