How to cut costs and avoid delays in cross-border money transfers

As overseas education, travel and family remittances increase, international money transfers have become a regular part of personal finance. However, cross-border payments often remain more expensive and complex than domestic transactions, driven by exchange rate margins, intermediary costs and regulatory requirements.

Harsh Sinha, Chief Technology Officer at Wise, says individuals can lower costs and avoid delays by focusing on pricing transparency and compliance before initiating a transfer.

Look beyond the headline fee
Sinha says the foreign exchange (FX) margin is often the largest hidden cost in international payments.

“Many providers add a margin on top of the exchange rate and combine it with fixed fees. As a result, people often pay more than they expect, and the recipient receives less than anticipated,” he says.

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He adds that using services that clearly display both the fee and the exchange rate upfront can help customers understand the total cost before confirming a transaction. Choosing the mid-market exchange rate instead of an inflated rate means more money reaches the recipient, he notes.

Compare options instead of defaulting to banks

Sinha says consumers should compare providers rather than relying solely on traditional bank wires.

Citing a 2024 Wise study in India, he says that for corridors such as GBP, EUR and USD, Wise was in some cases over 30% cheaper than several major banks for a typical transfer from India.

Experts say comparing the total payable amount — including exchange rate and fees — can help individuals identify meaningful savings, particularly for recurring remittances such as tuition payments or family support.

Plan transfers efficiently

Sinha says that on some platforms, percentage-based fees reduce for larger transfers. Planning payments efficiently instead of sending multiple small transactions can help lower overall costs, provided users stay within applicable limits.

Follow regulatory requirements carefully

Outward remittances from India are governed by the Foreign Exchange Management Act and the Liberalised Remittance Scheme framework of the Reserve Bank of India.

Sinha says completing identity verification upfront is critical to avoid delays. To send money from India, users must complete full KYC requirements, including Aadhaar, PAN and video verification.

He adds that rupee transfers must be funded from a personal Indian bank account in the sender’s name, and the name must match the account details on the transfer platform.

Providing accurate beneficiary details and selecting the correct purpose for the transfer also helps prevent additional compliance checks.

Experts further note that Tax Collected at Source (TCS) may apply to certain outward remittances under LRS rules, and customers should review the final amount, including applicable taxes, before completing the transaction.

Keeping confirmation emails and transaction reference numbers can assist with tax reporting or future verification, he says.

Assess safety and delivery timelines

On newer digital platforms, Sinha says users should assess regulation, safeguarding practices and transparency around delivery timelines.

Wise is authorised in the jurisdictions where it operates, including by the Reserve Bank of India, and safeguards customer funds separately from company funds, according to Sinha. He says the platform provides estimated delivery times before confirmation, and that a majority of transfers on major corridors are completed within 24 hours.

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