Want more of your hard-earned money to actually reach your family?
Sending money to family members is one of the most crucial tasks millions of people perform each month. Remittances help pay for food, shelter, school fees, and medicine back home.
Here’s the problem:
Hidden fees and poor exchange rates silently rob you of every transfer. And most people don’t even realize it.
Migrants sent $728.6 billion home to low- and middle-income economies in 2025. Almost twice as much as what was sent 10 years ago. Fees of even a few percent on that volume mean billions in losses each year.
Every dollar lost to fees is a dollar your family never sees.
The best news? Low-cost international remittances are easier to find. Read this complete guide to sending money home quickly, cheaply, and safely.
What’s inside this guide:
- Why Remittance Costs Matter So Much
- How To Spot Hidden Remittance Fees
- 5 Ways To Send Money Home For Less
- How To Get Your Money There Faster
Why Remittance Costs Matter So Much
Remittances are more than just wire transactions. For many families, remittances provide their primary source of income.
That’s why cost matters so much.
The UN has set a target for global remittance costs to fall below 3% by 2030. However many providers charge far more than this. High street banks and cash desks are often among the highest.
Here’s why: Traditional wire services have too many intermediaries. Each intermediary takes a small percentage. By the time your money arrives, your family receives less than you originally sent.
Digital services eliminate many intermediaries. Actually, digital transfers averaged 4.96% in cost, compared to 6.94% for conventional transfers. That’s significant if you’re sending, every month.
For instance, take the Philippines. Overseas Filipino workers sent home a whopping $35.6 billion USD in 2025. Canada hosts a large population of these workers. Many families in the Philippines and Canada utilize low-cost international remittances to make every dollar count. If you need to send money to the Philippines from Canada, look for a digital remittance service that shows the total fee and exchange rate upfront before you send.
Simple, right?
How To Spot Hidden Remittance Fees
Most people focus only on the transfer fee. That’s a big mistake.
There are actually 2 costs on every transfer:
- The transfer fee: The flat or percentage fee you see at checkout.
- Markup on the exchange rate: The difference between the actual exchange rate and what the provider offers you.
The second trickster is hidden fees. On average, the FX margin is 35% of the entire cost of the transfer. That’s a lot of money that doesn’t show up as a “fee”.
Think about it:
A provider can scream “no fees!” across its homepage … and then charge you an atrocious exchange rate. You still pay. It’s just hidden.
The solution is easy. Google your two currencies to find what the current exchange rate is (it’s called the mid-market rate). Compare it to the rate your provider gives you.
The closer they are, the better the deal.
5 Ways To Send Money Home For Less
Ok. Now the best part. Read through all five, choose one or two you like and apply them. Really reducing your remittance fees is that easy.
Compare Providers Every Time
Rates fluctuate daily. Yesterday’s bargain may not be today’s best price.
Compare at least 3 providers before you send. Look at the total amount your family will receive (not just the fee). A great free tool to compare costs across hundreds of country routes is the World Bank’s Remittance Prices Worldwide website.
Go Digital
Apps and online services generally have a huge advantage over banks and cashiers on price. They’re almost always cheaper. They’re usually much quicker too.
Plus, you can send funds from your couch, anytime day or night.
Most apps will even show you exactly how much money your family will get before you send yours. No estimating or guessing. No rude awakenings at the other end. That kind of transparency makes it easy to spot a bad deal.
Send Bigger Amounts Less Often
Many providers charge a flat fee per transfer. So sending $500 once is often cheaper than sending $100 five times.
When possible, schedule your transfers together. Your family will save by paying one fee instead of many.
Pick The Right Payout Method
How your family receives the money changes the price. The most common options are:
- Mobile wallet
- Cash pickup
Cash pickup is often the costliest method. Bank deposits and mobile wallets are typically cheaper. Find out what method works best for your family and compare prices for that service only.
Watch How You Pay
Here’s something most people miss…
If you use a credit card to pay for your transfer you may incur cash advance fees and additional interest from your credit card company. Ouch. That’s fees on top of fees!
Bank transfer/debit card payment will almost always be less expensive. Look before you press “send”.
It’s pennies. Literally. But over a year’s worth of transfers, it can add up.
How To Get Your Money There Faster
Cheap is great. But sometimes speed matters more, especially in an emergency.
Here’s how to make sure your money arrives quickly:
- Verify yourself now: Complete any ID verification requirements at sign-up. Don’t wait until you need to send money quickly.
- Verify, verify, verify: A typo in a bank account number or phone number can hold up a transfer for days.
- Don’t deposit on weekends/holidays: Bank transfers may get hung up on weekends/holidays if either bank is closed.
- Pick instant payout methods: Some mobile wallets and bank deposits can be accessed instantly.
BONUS: Most apps allow you to save your family’s information and schedule recurring transfers. This will save you time and help prevent errors.
The Bottom Line On Sending Money Home
Remitting to family members should not be expensive. With just a couple of small improvements more of your hard-earned money could go further.
To quickly recap:
- Check the real exchange rate before every transfer
- Compare at least 3 providers
- Go digital whenever you can
- Send bigger amounts less often
- Pick the cheapest payout method for your family
- Pay with a debit card or bank transfer
None of this takes long. But over a year, the savings add up fast.
Your family labors mightily to get the best return for every dollar you remit. Ensure that fees don’t eat up a larger share.
