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Title: Cost of Money Transfer to Russia, China, Uganda etc Post by: Jpja on May 21, 2014, 07:05:08 AM Several bitcoin commentators claim that transferring money to non-western countries costs 5-10%. I can believe this is this case with the most expensive options. But what is the most convenient way (except from bitcoin) that most people use?
Would be interesting to learn some real examples. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: peeveepee on May 21, 2014, 08:55:31 AM Use local money changer and carry cash abroad is actually cheaper in many countries in Asia.
Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: Swordsoffreedom on May 21, 2014, 09:11:24 AM I would say the next cheapest method to send money to non-western countries would be an e-mail money transfer
Depending on the country as it would depend on what banks you use and what country you want to send too. http://www.investopedia.com/financial-edge/0411/7-low-cost-ways-to-transfer-money.aspx https://www.lonelyplanet.com/thorntree/forums/middle-east/Iran/online-banking-in-iran-or-safe-bank-that-manages-iranian-currency?page=1 http://www.niacouncil.org/site/News2?page=NewsArticle&id=10897 But to my knowledge countries like Iran which are pretty much disbarred from the global banking economy due to international sanctions are not allowed to use SWIFT so sending any money to them is incredibly difficult. In reality Bitcoin is pretty much the only real way to send it practically at a decent speed or we end up with Western Union and the 10% quote that you are mentioning in your OP when comparing speed of delivery. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: stompix on May 21, 2014, 11:43:52 AM Several bitcoin commentators claim that transferring money to non-western countries costs 5-10%. I can believe this is this case with the most expensive options. But what is the most convenient way (except from bitcoin) that most people use? Would be interesting to learn some real examples. Even bitcoin is not that much of an option sometimes. Let's assume somebody buy some bitcoin right now at 500$ and sends them to me. To use them I would have to go to localbitcoin , no point in going again to an exchange , right? The best price I could get via cash (right now) is ~430$ and for national bank transfer is 420$. So , not that cheap. Plus the drive to the city would cost me an additional 30 euros. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: scryptasicminer on May 21, 2014, 12:19:02 PM Use local money changer and carry cash abroad is actually cheaper in many countries in Asia. This is actually what some people do in Asia now that Singapore has an exchange. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: induction on May 21, 2014, 12:27:26 PM Several bitcoin commentators claim that transferring money to non-western countries costs 5-10%. I can believe this is this case with the most expensive options. But what is the most convenient way (except from bitcoin) that most people use? Would be interesting to learn some real examples. Where one is transferring money from would probably be an important factor too, not just the destination. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: Pente on May 21, 2014, 05:21:31 PM Sending $100 to wife in Kenya (from Hawaii):
$7 via Western Union $9-11 via ATM card, fees vary from time to time, occasionally get I get hit with an extra $4 fee pushing up to about $14. Kipochi is currently broken, so the BTC >> MPESA >> KSHILLING doesn't work right now. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: lyth0s on May 21, 2014, 08:53:52 PM Several bitcoin commentators claim that transferring money to non-western countries costs 5-10%. I can believe this is this case with the most expensive options. But what is the most convenient way (except from bitcoin) that most people use? Would be interesting to learn some real examples. Unfortunately I think Western Union is one of the most common ways people send remittances back home. My buddy sends $300 a month back to Vietnam and it costs her 9% including the transfer fee + the currency conversion fee on her mother's side. As far as cash couriering goes, Anytime you carry fair amounts of cash into a "third world" country or a country that has very strict import laws, you're risking the possibility of off-record "taxation" or confiscation. This is even true with goods. IE taking 2 laptops into Argentina if you look like your a native, they will instantly have 1 of the laptops confiscated or you will have to pay a "tax" of over $1000 (usually worth more than the good so you just give up the good to their customs officer). This is also another real world example from one of my colleagues, who did not look like a tourist when entering Argentina. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: bryant.coleman on May 22, 2014, 04:28:25 AM Unfortunately I think Western Union is one of the most common ways people send remittances back home. My buddy sends $300 a month back to Vietnam and it costs her 9% including the transfer fee + the currency conversion fee on her mother's side. If you send smaller amounts (such as $100), then the fee increases to more than 15%. This is daylight robbery. They are charging as much fee as they wish, because they are having an absolute monopoly in the money transfer sector. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: stompix on May 22, 2014, 09:47:02 AM Unfortunately I think Western Union is one of the most common ways people send remittances back home. My buddy sends $300 a month back to Vietnam and it costs her 9% including the transfer fee + the currency conversion fee on her mother's side. If you send smaller amounts (such as $100), then the fee increases to more than 15%. This is daylight robbery. They are charging as much fee as they wish, because they are having an absolute monopoly in the money transfer sector. They don't have monopoly in the money transfer program.There are plenty of services for money transfer and a lot of alternatives like Moneygram , the one my relative use. The problem with WU is when you send small amount but on larger sums , bitcoin is not a solution either. Indeed WU is taking 10- to even 20% of small amounts like 100$ but when it comes to 10 000 the percentage is much smaller.For example 100$ it costs me 10$ , for 1000 only 25$. In case of bitcoin , if you want cash from those bitcoins you're going to deal with the rates dealers have and in my humble case (living in eastern europe) with only 4 or 5 active traders in the whole country I'm losing 10% on any amount. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: lyth0s on May 22, 2014, 07:08:50 PM Unfortunately I think Western Union is one of the most common ways people send remittances back home. My buddy sends $300 a month back to Vietnam and it costs her 9% including the transfer fee + the currency conversion fee on her mother's side. If you send smaller amounts (such as $100), then the fee increases to more than 15%. This is daylight robbery. They are charging as much fee as they wish, because they are having an absolute monopoly in the money transfer sector. They don't have monopoly in the money transfer program.There are plenty of services for money transfer and a lot of alternatives like Moneygram , the one my relative use. The problem with WU is when you send small amount but on larger sums , bitcoin is not a solution either. Indeed WU is taking 10- to even 20% of small amounts like 100$ but when it comes to 10 000 the percentage is much smaller.For example 100$ it costs me 10$ , for 1000 only 25$. In case of bitcoin , if you want cash from those bitcoins you're going to deal with the rates dealers have and in my humble case (living in eastern europe) with only 4 or 5 active traders in the whole country I'm losing 10% on any amount. If you're in Europe couldn't you just use Bitstamp and take the SEPA withdrawl for the flat fee of 0.9 euro? The "local traders" exchange rates only become a problem when there are no banks in your area that take SEPA/ACH, bank wires etc. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: bryant.coleman on May 23, 2014, 06:51:59 AM They don't have monopoly in the money transfer program.There are plenty of services for money transfer and a lot of alternatives like Moneygram , the one my relative use. There are not many alternatives, for people living in the developing / under-developed world. Moneygram is not very popular in Asia and Africa. Also, the fee charged by Moneygram is comparable to those being charged by the WU. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: stompix on May 23, 2014, 01:48:31 PM Unfortunately I think Western Union is one of the most common ways people send remittances back home. My buddy sends $300 a month back to Vietnam and it costs her 9% including the transfer fee + the currency conversion fee on her mother's side. If you send smaller amounts (such as $100), then the fee increases to more than 15%. This is daylight robbery. They are charging as much fee as they wish, because they are having an absolute monopoly in the money transfer sector. They don't have monopoly in the money transfer program.There are plenty of services for money transfer and a lot of alternatives like Moneygram , the one my relative use. The problem with WU is when you send small amount but on larger sums , bitcoin is not a solution either. Indeed WU is taking 10- to even 20% of small amounts like 100$ but when it comes to 10 000 the percentage is much smaller.For example 100$ it costs me 10$ , for 1000 only 25$. In case of bitcoin , if you want cash from those bitcoins you're going to deal with the rates dealers have and in my humble case (living in eastern europe) with only 4 or 5 active traders in the whole country I'm losing 10% on any amount. If you're in Europe couldn't you just use Bitstamp and take the SEPA withdrawl for the flat fee of 0.9 euro? The "local traders" exchange rates only become a problem when there are no banks in your area that take SEPA/ACH, bank wires etc. Sorry but we were talking about: "Cost of Money Transfer to Russia, China, Uganda etc" not between European countries. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: lnternet on May 23, 2014, 08:09:00 PM http://currencyfair.com/
get KYC/AML done, then deposit any currency and get any other out with very little fees Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: bryant.coleman on May 24, 2014, 06:35:46 AM Sorry but we were talking about: "Cost of Money Transfer to Russia, China, Uganda etc" not between European countries. Actually we can't even compare money transfers in Europe / North America to those in Africa / Asia. There are a lot of alternatives in the former region, and therefore the rates are more competitive. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: Pepin on May 25, 2014, 07:30:42 AM I live in China.
The cost to transfer money from the US to China is 0%. I get money out of an ATM in China using my debit card using a US bank account. No fees from both ends. The cost to transfer money from China to the US is about 3%. I walk into a bank and purchase a demand draft denominated in USD and pay with CNY. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: stompix on May 26, 2014, 01:44:42 PM I live in China. The cost to transfer money from the US to China is 0%. I get money out of an ATM in China using my debit card using a US bank account. No fees from both ends. The cost to transfer money from China to the US is about 3%. I walk into a bank and purchase a demand draft denominated in USD and pay with CNY. The question was about sending money to a person in China from your us account to his Chinese account. Not withdrawing funds from your own cc while you're on a trip in a foreign country. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: Pepin on May 28, 2014, 03:28:06 AM I live in China. The cost to transfer money from the US to China is 0%. I get money out of an ATM in China using my debit card using a US bank account. No fees from both ends. The cost to transfer money from China to the US is about 3%. I walk into a bank and purchase a demand draft denominated in USD and pay with CNY. The question was about sending money to a person in China from your us account to his Chinese account. Not withdrawing funds from your own cc while you're on a trip in a foreign country. The question simply asks about transferring money between countries, something which I do frequently, even if the money is always mine. If you want to send money to someone overseas, you can put money into their US bank account for free, and they can use their debit card at a foreign ATM. If they unable to open a bank account in the US, you can open an account at no cost, deposit money there, and mail them a debit card. You need to pay for the stamp and envelope and have them wait maybe a few weeks in the developing country for the debit card to arrive. ATM surcharges and bank fees may vary, but for me fees remain at zero. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: stompix on May 28, 2014, 01:20:49 PM I live in China. The cost to transfer money from the US to China is 0%. I get money out of an ATM in China using my debit card using a US bank account. No fees from both ends. The cost to transfer money from China to the US is about 3%. I walk into a bank and purchase a demand draft denominated in USD and pay with CNY. The question was about sending money to a person in China from your us account to his Chinese account. Not withdrawing funds from your own cc while you're on a trip in a foreign country. The question simply asks about transferring money between countries, something which I do frequently, even if the money is always mine. If you want to send money to someone overseas, you can put money into their US bank account for free, and they can use their debit card at a foreign ATM. If they unable to open a bank account in the US, you can open an account at no cost, deposit money there, and mail them a debit card. You need to pay for the stamp and envelope and have them wait maybe a few weeks in the developing country for the debit card to arrive. ATM surcharges and bank fees may vary, but for me fees remain at zero. Being caught with a foreign debit card owned by a foreign person means usually prison in my country. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: Pepin on May 29, 2014, 02:40:30 AM Being caught with a foreign debit card owned by a foreign person means usually prison in my country. Good, then don't show the police the card and your photo ID that doesn't match. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: stompix on May 29, 2014, 10:37:13 AM Being caught with a foreign debit card owned by a foreign person means usually prison in my country. Good, then don't show the police the card and your photo ID that doesn't match. Why do we have to discuss about semi illegal ways of sending money when we can compare the normal ways just as the topic started. Cost of doing so for me in Central Europe to send a one time payment to a guy in Uganda. Not mailing him a card , just normal transfer you are going to do with a person you pay once and probably won't hear about him again. I doubt somebody you barely know will trust this card scheme. Title: Re: Cost of Money Transfer to Russia, China, Uganda etc Post by: qwerty555 on May 30, 2014, 04:30:34 PM Posted elsewhere but more suitable here
so here is the approximate cost of sending a $50 gift via facebook..thanks to coins.ph April Smiley Wednesday 8:23pm Hi..re the very new quickcoin http://www.quickcoin.co/ . which allows you to send bitcoin via facebook. If someone in the USA wants to send a $50 birthday gift to Mindanao and send it thru coins.ph fb..what would be the total cost including LBC and the net amount the relative would receive (there is a 100 bit service fee to quickcoin) TY QuickCoin - Bitcoin Social Wallet. www.quickcoin.co 26 minutes ago Hi XXX! Thanks for posing such an interesting question. QuickCoin is incredibly exciting. I haven't had the chance to try out the service myself yet, but we could go through the process to get an estimate of the actual net amount that would get remitted-- The person sending money from the USA would first need to convert his US$50 to BTC. Basing it off CoinDesk's aggregated price which as of right now is US$563.83, and assuming that that person would use one of the US exchanges to get Bitcoin, he'd end up with something like 0.08868 BTC. Then he'd take that BTC and send it over with Quickcoin, which you said will charge 100 bits (0.0001BTC), so--pretending we've enabled this service already--then we at coins.ph would receive 0.08858 BTC via Facebook. We would then run that amount through our sell system. Our sell price as of this moment is PHP23,541. Quoted sell price (subtotal) on the site is Php2085. LBC charges Php125 for domestic remittances between Php2001 and Php2500, which means with the payout fees subtracted from subtotal, what the person in Mindanao would be able to claim would roughly be PHP1960. According to Google, the spot rate right now for USD to PHP is 43.80, which means US$50 is currently worth PHP2,190. If actual amount remitted ends up as PHP1,960, then in effect, the person in the US ends up paying PHP230 (or US$5.25) to get his US$50 from the US to Mindanao, into Philippine pesos. Hope that helps! Would love to hear your thoughts on QuickCoin and on making remittances cheaper/easier/faster Regards, April Thanks April. That was exactly the calculation I was looking for. Approximate cost 11%.. If however they have the pesos deposited in a BPI bank account that would be free and and save them P125 with a total cost of P105 (4-5% ish.) |