How Much Does It Cost to Send Money Abroad Using a Credit Card?
Using a credit card to send money abroad can be a convenient and fast solution, but before you make the transfer, it’s important to understand the fees involved. If you’re not careful, hidden charges may cost you more than expected.
See also Pay by Card, The Smarter Way to Pay International Invoices!
What Are the Fees When You Send Money Internationally with a Credit Card?
Here are the most common fees for international money transfers using a credit card:
1. Transaction Fees
Charged by the money transfer platform, typically ranging between 1% and 3% of the transfer amount.
Example: Some platforms like Transfez offer promotional rates as low as 1.8%.
2. Cash Advance Fees
Many credit card issuers treat this type of transaction as a cash advance, which can incur additional fees (usually 2%–5%) and daily interest from the date of the transaction.
3. Currency Conversion Fees
If your card is charged in foreign currency, your bank may charge 1% – 3% for currency conversion, depending on the card’s terms.
4. Exchange Rate Spread
In addition to fees, you might lose some value through the exchange rate margin, especially if the platform’s rate is less favourable than the market rate.
Sample Calculation: Estimated Credit Card Transfer Costs
Let’s say you want to send the equivalent of IDR 10,000,000 abroad:
| Fee Component | Typical Rate | Estimated Amount |
|---|---|---|
| Transaction Fee | 1.8% | IDR 180,000 |
| Cash Advance Fee | 3% | IDR 300,000 |
| Currency Conversion & FX | ±2% | IDR 200,000 |
| Total Estimated Fees | IDR 680,000 (~6.8%) |
How to Reduce International Transfer Costs with a Credit Card
- Choose platforms offering flat or low promotional fees.
- Use a credit card with no foreign transaction fees.
- Avoid cash advance charges by reading the card’s fine print.
- Always compare exchange rates with the live market rate.
Sending money overseas with a credit card is a smart option when speed and flexibility matter. However, knowing the full cost of international transfers can help you avoid unnecessary charges and make better financial decisions. Always review the platform’s pricing structure and your credit card’s terms, so your transfer stays fast, safe, and cost-effective.
See Video on How to Easily Send Money Abroad with Transfez
Expanding Business Reach: Pay Global Invoices with Credit Cards (Pay by Card)
The Pay by Card (PBC) service from Transfez opens a new corridor for cross-border invoice payments using a credit/debit card, providing cash flow flexibility and simplifying reconciliation. This feature allows you to leverage the credit card billing cycle to extend payment terms, thus maintaining the company’s liquidity.
Transfez has now opened a new corridor for invoice payments with credit cards to the following countries:
- Australia
- Canada
- Lithuania
- Pakistan
- Philippines
Important Points to Note Regarding PBC Fees
When using the Pay by Card service, it is important to understand the total fee structure that will be charged:
- Transfez Fee (Flat Fee): A fixed service fee (flat fee) of IDR 150,000 per transaction is applied. This fee is fixed, regardless of the nominal amount you are paying.
- Credit Card Fee: An additional fee of 2% of the subtotal (subtotal = converted amount + Transfez fee) will be charged. This fee is imposed by the credit/debit card provider.
- Exchange Rate: It should be noted that the exchange rate applied by Transfez during currency conversion (e.g., IDR to CAD, IDR to AUD) varies for each destination country. Always ensure you check the real-time applicable rate in the Transfez application before confirming the payment.
This feature is ideal for securing inventory, paying international freelancer services, or settling vital software bills without having to instantly drain the company’s cash reserves.
How to Use Pay by Card
Getting started with Pay by Card is simple—just follow these easy steps:
- Enter Invoice Details – Select the destination country and enter the invoice amount.
- Upload Invoice & Provide Recipient Information – Ensure all details are correct, including the recipient’s bank details.
- Pay with Your Credit Card – Use any VISA, MasterCard, or JCB credit card to complete your payment.
- Transaction Processing & Fund Transfer – Once your payment is successful, Transfez will process the transaction and transfer the funds to your recipient’s account. You can also track the payment status in real time!
Why Stick to Traditional Transfers? Pay by Card Instead!
✔ Keep your business finances flexible
✔ Take advantage of credit card rewards
✔ Make international payments seamlessly
📌 Click here to start using Pay by Card and streamline your global payments today!
Download Transfez App
Transfez App can help you transfer money abroad more quickly and efficiently. Jack Finance can also help your business in making transactions abroad. For those of you who want to send money to relatives who are abroad because they are studying, working, or traveling, Transfez will be ready to help. This app is available on Android as well as iOS.
