Going on vacation abroad involves a lot of planning. From buying plane tickets, hotel reservations to the most important question of how to carry money while traveling abroad. While many prefer to exchange cash at airports, others may depend on prepaid travel cards or international credit and debit cards.
Regardless of your source of foreign currency purchases, it is important to compare and negotiate rates. Indeed, with careful planning, you can significantly reduce costs. For example, buying at airports and hotels should be the last resort due to higher fees and currency conversion fees. Likewise, when dealing with banks or exchanges, you should not take the rates right away as they may charge a large margin on the rates.
“There are two major problems people face when they go to the bank or exchange office to convert their money. One that neither of them shares the live rates and second they add a margin important in the rates they quote. The rates charged by banks and money changers depend on the size and volume of the transaction, as well as the customer. Since most consumers and businesses are not at the knowing live rates and the fact that these rates are negotiable, banks and money changers tend to take advantage of this information arbitrage Also, due to small volumes, most MSMEs fail to trade unlike big corporations,” says Anand Tandon, Founder and CEO of Myforexeye, a Noida-based fintech company that provides foreign exchange services to SMEs, large corporations and high-net-worth individuals. tion offers a variety of services, including real-time rate checking, alerts, and one-click dealer login.
Asit Oberoi, Regional Manager (South Asia Operations) at iPiD, agrees.
“Besides the simplicity of the user experience brought by iPiD, one of the important things for people who want to send a payment abroad or receive a payment in India is to have an idea of the interbank rate of the rupee in So based on that rate one can negotiate and get better rates, otherwise a bank/money transfer industry players may offer higher rates with a much higher spread Generally, outgoing foreign currency payments by credit card have the highest spread, so you need to know the interbank rate and negotiate with your provider,” says Oberoi.
iPiD simplifies cross-border payments in the form of SMS. It facilitates cross-border payments by requiring only a simple power of attorney for the identity of the beneficiary. The company allows global payments based on phone number, email address, QR code, business registration number, among others.
Experts advise comparing rates the same way one looks for the cheapest offer when buying a mobile phone. Multiple rates can give a better picture of current rates as a negotiating tool. “In my work, I have observed clients forfeiting up to 1.5% of the transaction value due to inaccessible exchange rates and incurring non-negotiable bank charges. had no way for customers to check real-time rates in the absence of currency exchange terminals, which are expensive to purchase.We are leveraging technology to make currency exchange rates accessible to MSMEs without poking holes in their pockets,” says Tandon.
Also Read: Equity Market Update: Sensex Jumps 776 Pts, Nifty at 17,200; PowerGrid increases by 4%
Also read: ‘I don’t want LIC’s IPO to go the Paytm way’: Top government official