HDFC Charges for International Transactions: What You Need to Know

Wherever you are abroad or whatever purchases you make online in foreign currencies, or even when you need to send money abroad, you need to know what fee awaits you at the receiving end of this transaction. HDFC Bank is one of India’s largest and finest banks, offering services for international transactions like all other banks but charging it as well. Today, we shall be discussing how HDFC charges for its international money transfer services by comparing them with moneyHOP and some helpful tips to economize on this cost.

Receiving International Payments: What You Need to Know

However, that being said, transferring money into an account with HDFC is now easier. While HDFC does not charge any direct fee for incoming international remittances, there is only a certain cost:

• Intermediary Bank Fees: The charges of intermediary banks will vary depending on the route the money takes to reach your account. Intermediary banks charge their own fees, which reduces the amount received eventually.

• Exchange Rate Markup: HDFC charges an exchange rate markup, which is typically around 3% over the mid-market rate. This is a hidden charge that can heavily reduce how much you will actually get.

• Processing Time: Generally, in 2-3 business days from the actual wiring time, money will be credited in your account. Of course, this may vary depending on which country it is coming from and which banks are concerned.

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Sending Money Abroad: The Costs Involved

However, in terms of international money transfers, HDFC Bank is reliable but not economical. The given below is the bank’s fee structure for international transfers:

• Flat Fees: HDFC charges ₹500 for deals up to USD 500 or equivalent and ₹ 1,000 for more than USD 500.

• Goods and Services Tax (GST): A GST of 18% is levied on the fee charged for the transfer, which is once again over and above the flat fee.

• Exchange Rate Markup: HDFC goes further ahead to make an addition of huge markup to the exchange rate, which sometimes could be as high as 3% or even more, making the transaction costlier.

• Processing Time: If the request is submitted before 2:30 PM on a working day, then HDFC usually sends money in 2-3 working days. In case the request is initiated after that, the amount is transferred within an extra day.

HDFC’s Fee Structure for Foreign Exchange Services

HDFC Bank provides the following foreign exchange-related services: remittances, foreign currency cash (FCY) transactions, and cheque collections. Following is an detailed breakup of various charges for these services:

The table on the following page gives one a good overview of some of the most important charges you may be confronted with in the case of using HDFC’s foreign exchange service. Their fees can range from type to amount of the transaction and additional services such as foreign currency demand drafts or cheque collections. The information was collected from the official site of HDFC Bank.

In addition to the standard fees, HDFC also applies a Goods and Services Tax (GST) on the commission for currency exchanges. Below is the GST rate structure:

The Hidden Costs of International Transfers with HDFC

Although the fees for HDFC seem upfront, well, that is not the case – it is really buried in the markup of the exchange rate. Say you send $1,000 USD; that difference between HDFC’s exchange rate and the mid-market rate could mean either a lot less money than anticipated or the equivalent charged to someone else.

For instance, this would occur if the mid-market rate is 1 USD = 81.47 INR, whereas through HDFC, the rate is 1 USD = 80.07 INR. In that case, just because of the markup on the exchange rate, on a transfer of a mere USD 1,000, you will lose ₹1,400. As a matter of fact, that is a problem with most traditional banks: it is usually hidden costs in the form of exchange rates that they provide.

moneyHOP: A Transparent and Cost-Effective Alternative

If you’re looking for a more transparent and cost-effective way to manage your international transactions, moneyHOP offers an excellent alternative. Here’s how moneyHOP compares:

Why Choose moneyHOP?

• Lower Fees: moneyHOP’s fees are significantly lower than those of HDFC, saving you money on every transaction.

• Real Exchange Rates: Unlike HDFC, moneyHOP uses the mid-market exchange rate, ensuring you get the best possible deal.

• Faster Transfers: moneyHOP processes transactions quickly, often completing transfers within the same day.

Conclusion: Making the Right Choice

While HDFC Bank provides a pretty decent service to perform international transactions, the costs, especially hidden in exchange rates, tend to add up. If your aim is to maximize your savings by seeking transparency in each and every transaction, moneyHOP will provide a more viable alternative with lower fees, real exchange rates, and faster processing.

That makes a big difference in money that ultimately reaches its destination the moment one chooses the right service for his or her international transfers. Understanding the real cost will make you make more knowledgeable decisions and keep more of your money in your pocket.