Xe Money Transfer in the UK: fees, rates, and how it works?
If you need to make an international transfer, then Xe Money Transfer service in the UK can help you out. Xe has been around since 1993 and aims to be the world’s most trusted currency authority¹.
After being acquired by Euronet in 2015, Xe started to offer international transfers for both personal and business customers, in addition to providing reliable currency data. In 2019, HiFX, another major player in the money transfer industry, was acquired by Xe¹.
You can set up a GBP transfer online or on the phone, and the money will be deposited directly into your recipient’s bank account in over 130 countries around the world².
It’s best to always compare providers to get the most out of your money. And for money transfers, the differences are usually in exchange rates and fees.
If you want to get a fair deal on your international transfers, compare Xe Money Transfer against Wise that’s trusted by over 13 million people. Wise offers you transparent fees upfront and uses the mid-market rate to get you a fair deal when converting currency from British Pounds.
How does an international transfer with Xe work in the UK?
Xe is part of Euronet and offers international payments for individual and business customers in the UK. You can make a payment online or on the telephone, and the money will be deposited in your recipient’s bank account, in any of over 130 countries and territories across the globe².
Setting up a payment with Xe is pretty straightforward²:
- Open a free personal Xe account
- Insert the details of the transfer
- Confirm the overall costs and exchange rate
- Load GBP to your Xe account
- Confirm the transfer
- The money arrives to your recipient’s bank account
After you confirm the transaction, Xe will send you a notification on SMS and email once the transfer is approved and sent. However, they aren’t able to confirm if and when the transfer reaches the recipient’s account³.
Furthermore, some transactions are subject to additional charges by a third party bank. These fees may occur when transferring pounds to Xe or before the funds arrive in the recipient’s account². The extra charges most likely occur when the transfer is made using the SWIFT network.
Which currencies does Xe support?
Xe supports nearly 100 currencies, which means you can send money to over 130 different countries around the world⁴. The currencies supported include major world and exotic regions’ currencies.
Here’s a list of the most popular currency routes from GBP²:
- Canadian dollar
- US dollar
- New Zealand dollar
- Eurozone euro
- Polish złoty
- South African rand
- United Arab Emirates dirham
- Indian rupee
Limits on GBP transfers with Xe
Xe doesn’t limit the amount you can transfer with their service overall. However, you can transfer up to £350,000 or sending currency equivalent with a single online transfer⁵.
How long does it take for Xe to transfer money?
Once Xe has received your payment, it’ll take up to 4 working days for your money to reach the recipient’s bank account⁶. How much time it will take exactly depends on how fast the banks (intermediary banks, if any, and the recipient's bank) process the payment.
Is Xe Money Transfer safe and trustworthy?
In a nutshell, yes.
Xe Money Transfer uses state-of-the-art security technology and various services for anti-money laundering, counter-terrorist financing, and fraud prevention. Your data is also secured and protected by the Europe’s GDPR standards. Furthermore, as a financial institution, Xe is regulated by The Financial Conduct Authority in the UK⁷.
What are the fees and rates Xe charges for money transfers in the UK?
When sending money, Xe adds an FX margin to the exchange rate and additional fees for processing the transfer.
Let’s look at both in detail.
Xe Money Transfer exchange rate
Xe is upfront about their spread or markup on the exchange rates.
Quoting an example from Xe’s website²:
”The GBPEUR mid-market rate, at the time of quote was 1.1642, so the FX margin for Xe Money Transfer can be calculated as 0.87%”
And Xe’s consumer terms and conditions reveal⁸:
”For FX Contracts, the rate which we offer you is different to the rate we are able to obtain from the wholesale market. Accordingly, we make a profit from selling you Purchase Currency.”
Furthermore, the FX margin may change based on the amount and the currency route.
If you don’t want to pay extra for currency exchange markups and instead value fair and transparent fees, check out Wise – your money is converted using the mid-market exchange rate, the only real exchange rate.
Xe Money Transfer fees
There's no upfront transfer fee with Xe².
But, it's useful to know that you may be subject to charges associated with the SWIFT network. Here’s what Xe says about it²:
“Charges may occasionally be applied by a third party bank when transferring the funds to Xe Money Transfer or before the funds arrive in the recipient account.”
Furthermore, Xe consumer terms and conditions reveal⁸:
“In addition, we charge you fees when we execute Payments on your behalf and charge you administration costs. We charge these to offset the charges we incur in executing the Payments and to cover our own costs in carrying out administrative tasks.”
By now, you might be wondering what third party costs could be added to your international payment. In most cases, this is down to the SWIFT network.
The SWIFT network is a common way to move funds across borders and involves several banks working together to get your money where it needs to be. You can think of it like your money taking several connecting flights to get to its final destination.
The banks which process the transaction are known as intermediaries and can take fees for their service - meaning that there could be up to 3 extra charges on your transaction.
To avoid the SWIFT network when sending money to the recipient in their local currency, try an alternative money transfer provider like Wise. Wise’s smart way of processing international transfers is safe and efficient - and can bypass the SWIFT system.
Making an international money transfer with Xe is pretty straightforward. However, before you commit to a single service provider, it’s worth comparing the costs of a few different options. Even if the upfront fees seem cheap and affordable, providers may add a markup on the exchange rate and your transfer might end up costing significantly more.
Sources used for this article:
1.https://www.xe.com/company/
2.https://www.xe.com/mt/uk-money-transfer/
3.https://www.xe.com/apps/ios/faq/?q=1-10
4.https://help.xe.com/hc/en-gb/articles/4408840388753-Which-currencies-do-you-offer-
5.https://help.xe.com/hc/en-gb/articles/360019847837-How-much-money-can-I-send-
6.https://www.xe.com/send-money/send-money-from-united-kingdom/#how-long-does-it-take-to-send-money-from-United%20Kingdom
7.https://help.xe.com/hc/en-gb/articles/360019471677-Keeping-my-money-and-information-safe
8.https://help.xe.com/hc/en-gb/articles/360019800437-United-Kingdom-UK-Consumer-Terms
*All sources checked on July 19, 2022
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