5 Ways to Avoid Hidden Fees When Sending Money from UAE
LC Editorial • Money Transfer Guide
Hidden fees when sending money from UAE can drastically reduce the amount your recipient receives. Many remittance providers advertise low fees but add hidden charges through exchange rate markups, backend fees, and intermediary bank costs.
By understanding these costs, you can avoid hidden fees when sending money from UAE and maximize your transfers. This guide will help you identify common hidden charges and show you how to save money on international transfers.
Common Hidden Fees When Sending Money from UAE
Many people overlook hidden fees in international money transfers. While a service may advertise low or zero transfer fees, there are often additional charges that increase the total cost of your transaction.
Here are the most common hidden fees when sending money from the UAE.
1. Exchange Rate Markups – The Hidden Cost of Sending Money from UAE
Some providers claim to offer “zero transfer fees,” but they apply a less favorable exchange rate to make up for it. Even a small difference in exchange rates can significantly impact the amount received by your recipient.
✅ How to Avoid It:
- Choose services that offer transparent exchange rates with no hidden markups.
- Use a money transfer comparison tool to check mid-market exchange rates and find the best option.
- Use platforms like LeoCompare, which provide real-time exchange rate comparisons.
2. Transfer Fees – What to Watch Out for in UAE Money Transfers
Transfer fees are the costs imposed by money transfer services to process your transaction. Some providers advertise low or no fees, but they compensate by offering unfavorable exchange rates.
✅ How to Avoid It:
- Compare both transfer fees and exchange rates before making a transaction.
- Watch for special promotions that waive or reduce fees during peak remittance seasons.
- Some services offer flat fees for larger transfers, making them more cost-effective.
3. Backend Fees (Receiving Fees) – Hidden Charges for Receiving Money in Other Countries
Also known as “receiving fees,” these are deductions taken from the amount received by the recipient’s bank. This fee varies depending on the country and the bank’s policies.
✅ How to Avoid It:
- Choose services that have direct partnerships with banks in the recipient’s country.
- Opt for money transfer providers that guarantee the full amount reaches the recipient.
4. Middleman Charges (Intermediary Bank Fees) – How Intermediary Banks Add Hidden Costs
When a transfer goes through multiple banks before reaching the recipient, each intermediary bank may deduct a small fee, leading to unexpected costs.
✅ How to Avoid It:
- Use direct money transfer services that bypass intermediary banks.
- Services like Western Union, Remitly, and others provide direct bank deposits to reduce extra fees.
5. Choose Providers with No Hidden Fees
Some money transfer services lack transparency about additional costs like backend fees, intermediary bank deductions, or receiving charges. These hidden costs can reduce the final amount received by your recipient.
✅ How to Avoid It:
- Select providers that guarantee full payout with no hidden deductions.
- Look for “no hidden fees” policies when choosing a money transfer service.
- Read customer reviews to check for complaints about unexpected charges.
Tips to Avoid Hidden Fees When Sending Money from UAE
1. Use Comparison Tools
Just as you compare prices before making a major purchase, you should compare money transfer services to avoid hidden costs.
✅ How to do it:
- Use platforms like LeoCompare to compare exchange rates, transfer fees, and delivery times.
- Look for customer reviews to ensure transparency.
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2. Monitor Exchange Rates
Exchange rates fluctuate daily, and sending money at the right time can save you money.
✅ How to do it:
- Set up rate alerts to transfer when rates are favorable.
- Use tools like Google Exchange Rate Converter or LeoCompare’s real-time exchange tracker.
3. Choose the Right Payment Method
Different payment methods come with different fees. For example:
- Bank transfers are cheaper but take longer.
- Credit/debit card payments are faster but may come with higher fees.
✅ How to do it:
- Select the payment method that balances cost and speed based on your needs.
- Look for services offering low-fee bank transfers with fast processing times.
4. Take Advantage of Promotions & Discounts
Many money transfer services offer seasonal promotions and discounted fees to attract customers.
✅ How to do it:
- Sign up for email alerts from providers
- Check LeoCompare for special promotions and limited-time offers.
Conclusion
To avoid hidden fees when sending money from UAE, always compare transfer providers, monitor exchange rates, and choose transparent services. By following these five steps, you ensure that your recipient receives the full transfer amount without unnecessary deductions.
💡 Save money today by using LeoCompare to find the best transfer service in the UAE!
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