Most cost effective International money transfer option USD-> EURO

Renee

Renee

N0rthernbelle
I'm planning a wedding in France and I will soon need to pay a number of deposits by wire transfer. Of course I'll be asking first if I can pay by credit card, but for the vendors who do not accept credit cards, does any one have any suggestions as to which banks or FX brokers would be the most cost effective?

I know the most cost effective option will vary depending on the amount of money being transferred, so as an example, the first payment I have to make is €1,500 to our wedding planner who does not accept credit cards.

Any grand ideas on earning points on these transfers?

I appreciate any and all advice shared :)
 
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kissmyjazz

Level 2 Member
For smaller transfers (below $3000) Transferwise is good option, as exchange rate is the FX spot rate. So you will only lose 1% fee. Here are the fees https://transferwise.com/pricing#?from=USD&to=EUR
If you do not mind, you can use my sign-up link and gain a free transfer option for up to 500 British pound equivalent in dollars https://transferwise.com/u/fc26
Currency fair is another https://www.currencyfair.com/ option. I have no experience with them, while Transferwise was quite fast and no other fees were charged by banks on either side. For larger sums of money the direct bank transfer may be your best option, the problem is that there may be some additional fees charged by intermediary banks that are hard to predict.
 
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incendia

Level 2 Member
If you have someone you trust and can rely on over there.

1) You can open a schwab or fidelty account, mail them the atm card and have them withdraw cash as needed. You put cash in the account as its needed.

2) if you know someone there that needs USD or items bought in the US make some sort of agreement with them. You write a check for 1500 Euros and I'll deposit x into your chase account

3) open a french bank account and write checks. ( there is a bank in the US that lets you keep a Euro account sorry I dont remember the name or details)

4) travelex has a program where they will deliver cash to your door just set your door to whomever needs to be paid

5) there are some prepaid card options FrequentMiler did a review of one awhile back
 
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kissmyjazz

Level 2 Member
incendia said:
If you have someone you trust and can rely on over there.

2) if you know someone there that needs USD or items bought in the US make some sort of agreement with them. You write a check for 1500 Euros and I'll deposit x into your chase account

3) open a french bank account and write checks. ( there is a bank in the US that lets you keep a Euro account sorry I dont remember the name or details)
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Sorry, but some of this information is misleading. Nobody writes checks in Europe, direct bank wire is how things are done there. It will also not be easy (with FATCA and all) and quite expensive to open and maintain a non-resident bank account in France.
 
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incendia

Level 2 Member
kissmyjazz said:
Sorry, but some of this information is misleading. Nobody writes checks in Europe, direct bank wire is how things are done there. It will also not be easy (with FATCA and all) and quite expensive to open and maintain a non-resident bank account in France.
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I only know US Banking and made my suggestions off of that, I didn't mean to mislead.

Paypal is also an option ( I dont know how good their rate are)
 
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volker

Level 2 Member
incendia said:
3) open a french bank account and write checks. ( there is a bank in the US that lets you keep a Euro account sorry I dont remember the name or details)
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It got really difficult for US citizens to open checking accounts abroad these days. Much luck with that... As someone noticed before, there are no checks in Europe but unlike the US bank system you can transfer money really easily between bank accounts in the entire Eurozone -- for free.

It is even that bad that European banks close Europeans that live in the US their European savings and investment accounts. Even if you have an account as US citizen you never know when they will close it... http://www.wsj.com/articles/expats-left-frustrated-as-banks-cut-services-abroad-1410465182
 
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kissmyjazz

Level 2 Member
Paysera is one service provider that I know of that will allow you to make SEPA transfers without the bank account in Europe. It is possible to open Paysera account remotely but I do not know how easy it is to do for an American citizen. You will still need to use something like Transferwise and fund your Paysera account then. https://www.paysera.com

Paypal has terrible exchange rates and is generally not customer-friendly company. I would avoid Paypal even if they offer US to Eurozone payments ( I have no idea if they do) .
 
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MickiSue

MickiSue

Level 2 Member
Is there a reason that you can't just do a bank to bank transfer from your bank to theirs?

You need their IBA number, and account number to give to your bank. The recipient of the funds doesn't need YOUR banking information.
 
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kissmyjazz

Level 2 Member
Of course OP can, it is just quite expensive: $20-25 for outgoing wire, then something like 6 euros for incoming wire outside of the Euro area will be taken by the French bank from the seller's account. Payment will likely go through intermediary bank that will also charge its $10-20 fee. On top of that there will be some spread in the currency exchange rates. So if it necessary to wire the exact sum in Euros, it is cheaper and also more convenient to use services like Transferwise where you can specify how much you need to transfer in Euros and they will guarantee that payment. Incoming Tranferwise wire will be done by SEPA transfer, so there are no incoming wire fees on the seller's side to worry about. Fees in general are lower and transparent.
 
Matt

Matt

Administrator
Staff member
In terms of most efficient, one way might be to wire in the full amount to a single point, which would mean that you avoided multiple fixed transaction fees.

Since bank accounts introduce layers of complexity, a work around might be to wire in everything to the planner, then have them be responsible for paying out the other vendors.

That does bring with it the risk that the planner absconds with more money though..
 
Renee

Renee

N0rthernbelle
Thanks everyone for your input!
I can attest from personal experience that it is very difficult to open a bank account in France as a US citizen, even if you are living there! I was even living and working there (legally) but I wasn't able to open an account until I had the proper work visa (which took months to process). I was paying monthly fees on it, so I ended up closing it 5 years ago.

I'll look into the different options you all have suggested this weekend when I have time to sit down with my fiancé!

Does anyone have any experience which cards charge cash advance fees with WoldRemit? I wonder if it would be similar to funding a bank account with a cc, as far as which banks code it as a Cash Advance. If I do go this route, I will certainly set CA to $0 but if anyone has any experience, let me know!

kissmyjazz said:
For smaller transfers (below $3000) Transferwise is good option, as exchange rate is the FX spot rate. So you will only lose 1% fee. Here are the fees https://transferwise.com/pricing#?from=USD&to=EUR
If you do not mind, you can use my sign-up link and gain a free transfer option for up to 500 British pound equivalent in dollars https://transferwise.com/u/fc26.
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I think using Transferwise is a winner - for my first transfer at least -thanks to Kissmyjazz's referral link / free first transfer - thanks!
 
Renee

Renee

N0rthernbelle
@kissmyjazz - I used your referral link. Thanks again! I guess now that I've made my first deposit, it's actually official, I'm getting married! holy crap. :)
If anyone else can benefit from referring me to any of the other services mentioned, please feel free to send them my way. You have taken the time to offer your advice, and I'd definitely like to help you by using your referral links.
 
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