International money transfers generally have high costs (including fees, the delay between payment and delivery, and fees related to payment support); sending financial support to family and friends outside your home country can be costly and unbeneficial. International transfers through gift cards offer an alternative solution that may reduce these expenses and simplify the process for small-value or non-urgent transfers.
Many people have international money transfers with wire transfers, PayPal, or remittance services, which are rapidly increasing in cost. Almost everyone is now moving to considerably less expensive methods of sending value to users outside their home country through digital gift cards or online vouchers.
This blog aims to share how to save money internationally and encourage the use of gift cards rather than more standard methods to avoid the fees, delays, and other costs of sending money internationally.
Read related blogs: Gift Cards vs Western Union: A Comparison of International Money Transfers
The High Cost of Traditional International Money Transfers
Sending money across borders using conventional methods often results in expensive fees, poor exchange rates, and delays. Let’s break down the primary cost factors involved in traditional money transfer services.
1. Transfer Fees
Traditional international transfer services like Western Union, MoneyGram, and banks often charge service fees that significantly reduce the final amount the beneficiary receives.
Example: Services like Western Union can charge $5–$50 or more per transaction, depending on the country and speed of delivery. These fees add up quickly.
The more money you send or the more often you transfer, the more you lose in processing and service fees, making this an unsustainable option over time.
2. Currency Conversion Fees
Another hidden cost is the currency exchange markup. Most services offer exchange rates lower than market value and profit from the spread.
Example: If you send $500, you might lose $15–$30 in unfair conversion rates. Most users do not know this cost unless they check the rate closely.
The difference in exchange rates means the recipient gets less than expected. This can be frustrating when you’re budgeting for necessities like groceries or tuition abroad.
3. Receiving Fees
Recipients may face charges when collecting funds, primarily through banks or remittance offices. These charges are not always disclosed to the sender.
For instance, a receiving bank might deduct $10–$20 as an international transaction fee, reducing the beneficiary’s usable amount.
Such hidden costs can make a significant difference, especially in countries where the cost of living is high or banking services are limited.
Read related blogs: Avoid Hidden Fees: Why Gift Cards Are Best for International Transfers
How Gift Cards Help You Avoid High Fees in International Transfers
Gift cards have emerged as an innovative solution to reduce or eliminate many fees associated with sending money abroad. Here’s how they can help you save.
1. No Transfer Fees
Gift cards, predominantly prepaid Visa or retailer-specific cards, can be sent digitally without fees and provide full value to the recipient.
Example: Sending a $100 Amazon gift card incurs no extra cost beyond the card value, unlike traditional transfers that may charge $10 or more per transaction.
This allows you to give the full intended amount to the recipient without worrying about overhead or administrative charges eating into the total.
2. No Hidden Fees
Gift cards have transparent pricing, making it easier for senders and recipients to understand precisely what they’re giving and receiving.
Most reputable platforms clearly state any applicable fees upfront, and recipients can redeem cards without unexpected deductions or administrative costs.
This clarity reduces confusion and ensures both parties know the value being exchanged, something traditional money transfers rarely offer.
3. No Currency Conversion Markups
Many prepaid Visa/MasterCard gift cards operate on international networks and eliminate unnecessary currency conversion losses by holding a fixed value in USD or local currency.
Some cards support multi-currency usage, making them ideal for recipients in countries with volatile exchange rates or poor local currency performance.
This feature helps recipients retain full value and buy items in local currency without being penalized by unfavorable conversion rates.
The Speed Advantage: How Sending Money with Gift Cards Can Save Time and Money
Besides saving money, gift cards also help you save time. Their fast digital delivery ensures recipients can access and use the funds instantly without long waiting periods.
1. Instant Delivery of Digital Gift Cards
Digital gift cards are sent via email or text and are usually delivered within minutes, offering a faster alternative to bank wires and remittance services.
In contrast, international wire transfers may take 2–5 business days to reach the recipient, often delaying important purchases or payments.
The speed of digital delivery makes gift cards a perfect option for emergencies or last-minute needs when immediate access to funds is essential.
2. Faster Access to Funds
Recipients can immediately redeem and use gift cards for online shopping or digital subscriptions, eliminating waiting periods and clearance processes.
Unlike traditional transfers, which often require recipients to visit a bank or agent location, digital gift cards offer a seamless, self-service experience.
This added convenience ensures funds are immediately usable, saving time, energy, and sometimes transportation costs associated with bank visits.
Flexibility and Security: More Ways Gift Cards Save You Money
Gift cards offer cost savings and speed, greater flexibility in usage, and enhanced security, making them an appealing alternative to cash transfers.
1. Wide Acceptance for Online Purchases
Gift cards for platforms like Amazon, Walmart, or prepaid Visa can be used globally for shopping, making them a highly flexible alternative for international support.
Recipients can instantly buy groceries, electronics, or school supplies without withdrawing cash or making conversions, adding to their convenience.
Such versatility ensures the money is spent wisely and immediately, rather than bogged down in banking bureaucracy or inaccessible services.
2. Security and Privacy
Gift cards don’t require the exchange of banking or personal financial details, reducing the risk of identity theft and fraud.
This makes them a safer option than bank transfers, which can expose account numbers, addresses, and sensitive data that hackers target.
Furthermore, most platforms have security features like two-step authentication and email verification for digital card delivery.
Best Types of Gift Cards to Use for International Transfers
Choosing the correct type of gift card can maximize the recipient’s convenience and value. Let’s explore the best categories of gift cards for global transfers.
1. Prepaid Visa and MasterCard Gift Cards
These cards are accepted nearly everywhere Visa or MasterCard is supported, making them ideal for general-purpose use and spending flexibility.
They can be used online, in stores, and sometimes even for ATM withdrawals, offering a utility similar to a debit card.
This makes them perfect for recipients who need cash-like versatility without the red tape of a traditional financial institution.
2. Retailer-Specific Gift Cards (Amazon, Flipkart, Walmart)
Retailer gift cards work best when the recipient prefers a specific store. These are great for sending funds designated for purchases like books, electronics, or groceries.
Amazon and Flipkart, for instance, operate in multiple countries and allow recipients to redeem the full card value without additional costs.
Ensure the recipient can access the respective platform to fully utilize the card’s value.
3. Digital Gift Cards (Apple, Google Play)
Perfect for tech-savvy users, these cards can be used for apps, entertainment, subscriptions, and more—ideal for younger recipients or digital shoppers.
They are typically delivered instantly and offer easy redemption through mobile devices, making them practical and user-friendly.
This option is especially popular with students, freelancers, and digital nomads who rely on online tools and services.
How to Maximize Savings When Sending International Transfers with Gift Cards
To get the most value from your international gift card transfers, avoid unnecessary charges and choose the right platforms and card types.
1. Look for Gift Cards with Low or No Activation Fees
Choose gift cards with minimal or no activation charges to avoid wasting money on overheads that could have been added to the gift value.
Many platforms offer deals or promotions with zero service fees—shop smart and take advantage of those when sending cards.
Always read the fine print and choose cards from well-reviewed, reputable platforms to ensure your money goes further.
2. Choose Gift Cards with Competitive Exchange Rates
Some gift cards are issued in multiple currencies or offer favorable exchange conditions, helping reduce the impact of currency conversion.
Choose gift cards that allow local currency usage or operate globally to minimize transaction fees for the recipient.
This can significantly increase the usable value of the gift, especially in countries with poor conversion rates.
3. Send Digital Cards for Faster and Cheaper Transfers
Avoid physical delivery costs and delays by opting for digital gift cards, which are cheaper to send and arrive instantly.
Platforms like Amazon, Apple, and Visa offer seamless digital delivery with tracking and verification options for added peace of mind.
Digital delivery saves time and eliminates customs duties, postal losses, and handling charges.
Common Pitfalls to Avoid When Sending Money with Gift Cards
While gift cards offer many benefits, being aware of potential drawbacks is essential. Here are the common mistakes to avoid when using gift cards for money transfers.
1. Limited Redemption Options: Some cards can only be used on specific platforms or regions. Always ensure the recipient can use the card before purchasing. Check regional restrictions and choose internationally accepted cards like Visa or global retailers to avoid limitations.
Quick confirmation can prevent frustration and maximize card usability.
2. Potential Fraud Risks: Scammers target gift card transactions, so purchasing cards from trusted websites is essential and avoiding sharing card details via unsecured channels. Never buy cards from unverified sellers or third-party marketplaces, as these are often linked to fraudulent activity.
Using secure payment methods and reputable vendors ensures safety for both sender and recipient.
3. Regional Restrictions: Some cards may only be valid in certain countries. Always verify if the gift card will work in the recipient’s country before sending it. Cards tied to US stores may not work internationally unless specified as global or multi-currency.
Reading the card’s terms and conditions before purchasing avoids unnecessary waste and ensures smooth usage.
Alternatives to Gift Cards for Saving on International Transfers
In addition to gift cards, alternatives like peer-to-peer apps (Venmo, PayPal), cryptocurrencies, and digital wallets offer lower fees and faster transfer times.
However, these options often require recipients to have access to banking apps, mobile wallets, or crypto platforms, making them less universal.
Gift cards are better for recipients without bank access or in regions with limited digital infrastructure.
FAQs: Sending International Transfers Through Gift Cards
Are there any fees when sending money with gift cards?
Most digital gift cards don’t charge transfer fees, though some may include small activation or service charges upfront.
Can gift cards be used for international purchases or services?
Yes, predominantly prepaid Visa/MasterCard and global retailer cards like Amazon or Apple, which are widely accepted internationally.
How fast are digital gift cards compared to bank transfers?
Digital gift cards are delivered instantly, while bank transfers may take several days, depending on the recipient’s country and bank policies.
What’s the best type of gift card for sending money internationally?
Prepaid Visa or MasterCard cards are the most flexible, while Amazon and Google Play cards are ideal for specific use cases.
Are there any hidden fees when redeeming gift cards internationally?
Generally, no, but it’s essential to confirm card terms, especially for region-specific cards or those with expiration dates.
Conclusion
Gift cards offer a low-cost, fast, and secure alternative to traditional international money transfers, eliminating hidden fees and delays.
They provide flexibility, instant delivery, and greater control for both sender and recipient, making them ideal for modern, cross-border gifting.
For quick and secure money transfers, Beem offers a reliable solution to send money online with just a few taps. Whether paying back a friend, sending funds to family, or managing everyday expenses, Beem simplifies the process with instant transfers, low fees, and real-time tracking. It’s an innovative, hassle-free way to stay in control of your money—anytime, anywhere.
If you want to support someone abroad, consider digital gift cards as your method—they’re convenient and a more intelligent financial choice.
