A quick one—Have you ever tried to send money to India from Canada and found yourself scratching your head, wondering where all those extra charges came from? It's a bit like ordering a large pizza, expecting it to cost $15, and then ending up with a bill for $25 because of delivery charges, service fees, and a mysterious "pizza enjoyment tax."

Okay, maybe not that last one, but you get the point. It's the same with cross-border payments. The payment process begins with you thinking you're paying a certain amount, only to discover sneaky fees lurking at the corner.

Oftentimes, you’re all set to send money to India online to help a family member or friend in need of a quick expense. To you you've picked what seems to be the best deal, clicked all the right buttons, and then—boom! Your recipient gets less than you intended, and you end up paying more. It's a frustrating cycle and experience.

If you, like many other NRIs, have been plagued with the hidden fee dilemma, in this post we will shed some light on what hidden fees are and why they appear in transactions when you need to send money to India from Canada. Whether you're dealing with cross-border payments or international remittances, it's crucial to understand where your money goes and how to avoid unnecessary costs.

What Are the Hidden Fees When You Send Money to India?

Whenever you send money to India, you might have noticed that the amount you send isn't always the amount that gets received. So, where does the blackhole come from? Well, the truth of the matter is several hidden fees could be eating away at your hard-earned cash. These include:

This is perhaps the sneakiest fee of them all. When you transfer CAD to INR online, the exchange rate you see is not always the one you get. Money transfer providers often markup exchange rates. What this directly means is that they offer you a rate that's worse than the market rate. The difference between the market rate and the rate you're given is essentially a hidden fee. Simple!

These are the most obvious charges and can vary widely between providers. Some services might have a flat fee, while others charge a percentage of the amount being transferred. Always read inbetween the lines to understand what you'll be paying upfront.

Depending on the method you choose to send money to India online, you might face additional transfer fees. These can include charges for using certain payment methods, like credit cards, or fees for faster service.

Did you know that the recipient might also be charged a fee to receive the money? This can be particularly common with certain banks or when using cash pickup services.

Both the sending and receiving banks might charge fees for handling the transfer. These fees can be tricky to predict and might not be disclosed until the transaction is complete. Of course cross-border payments like this exist only in the domain of using traditional banks for international money transfer.

How Do Exchange Rates Affect Money Transfers to India?

Having discussed this broadly in this article, one of the popular ways cross-border payments apps apply hidden fees whenever you're sending money from Canada to India, is the exchange rate.

When you send money to India from Canada, the rate at which CAD is converted to INR can significantly impact the total cost of the transfer. Providers often advertise "zero fees," but they make their profit by offering less favourable exchange rates. This markup might seem small, but it can add up, especially with larger transfers.

To avoid getting shortchanged, compare the exchange rates offered by different global money transfer services. Look for providers that offer rates close to the mid-market rate, which is the real exchange rate you see on financial news sites. Even a small difference in the rate can mean a significant loss when you transfer CAD to INR online.

Are Service Fees Always Transparent?

By how far we’ve come in this article, you obviously know the answer to this question, but pause. Even though transparency can be a major issue with service fees, some money transfer providers are upfront about their fee.

Dubious providers on the other hand, bury them in the terms and conditions–a document many people don’t even bother reading a paragraph of!

Nonetheless, It's essential to read all the details before committing to a transfer. Look for any mention of additional charges that might apply based on the transfer amount, destination, or payment method.

Online reviews and comparisons can also be helpful in determining which providers are more transparent. Users often share their experiences with hidden fees, giving you a clearer picture of what to expect. Remember, the best deal isn't always the one with the lowest advertised fee—it’s the one with the fewest surprises.

How Do You Avoid Hidden Fees When Sending Money to India?

Avoiding hidden fees requires a bit of research and diligence. Here are some tips to help you save money when you want to send money to India from Canada:

An example is Pesa who, for new customers, is currently exchanging an extra 3.5 INR per dollar above the common rates available on other exchanges and cross-border payments. Customers who want to send money to India from Canada can take advantage of such limited time offers that pop up on Pesa every now and then.

Why Is It Important to Be Aware of Hidden Fees in Money Transfers to India?

Being aware of hidden fees is crucial for making informed decisions. When you send money to India, every dollar counts. Hidden fees can quickly add up, reducing the amount your recipient gets and increasing your costs.

By understanding where these fees come from and how to avoid them, you can ensure that more of your money goes where it's needed.

Additionally, hidden fees can erode trust in money transfer providers. If you feel like you're being taken advantage of, you're less likely to use that service again. Transparency and fairness are key to a good money transfer experience, so choose providers that prioritise these values.

Why Pesa Remains the Best Choice to Send Money to India

If you’re looking to avoid hidden fees, Pesa stands out as a top choice for sending money to India. With Pesa, you can be confident that there are no hidden charges. We offer transparent pricing, competitive exchange rates, and low service fees, ensuring that you get the best deal possible.

Pesa also takes away bureaucratic protocols faced by traditional banks, making it easy to transfer CAD to INR online and providing a smooth and hassle-free experience.

Their real-time transfers mean your money reaches your loved ones quickly and securely. Plus, our user-friendly platform is currently one of the best in the world, paired with excellent customer support make the process even more convenient. Sign up today at Pesa.