Disadvantages of money transfers from Europe to Ukraine via banks

“Attractive” bank terms

A number of difficulties and concerns arise when transferring significant sums abroad, making the situation more difficult for migrants, leaving the option of transfers via banks or payment services. Nearly every bank uses SWIFT payments for transfers abroad. But do not expect the money to hit your bank account in Ukraine the next day. In the best case scenario, it will take a few days. On top of that, banks set additional fees for cash withdrawal and currency conversion, not to mention a number of conditions applied to the customers. Looking at the disadvantages of bank transfers, we will focus on the three banking organizations working in Poland to Ukraine direction.

PKO Bank Polski + KredoBank

Polish PKO Bank Polski cooperates with the Ukrainian KredoBank. Money transfer process with these banking organizations requires the sender to go to a branch and pay fees.

The procedure itself is as follows:

• To use the service you will need to open an account at KredoBank with Złotówka service plan.
• You will receive one card in hryvnia and two currency cards with instructions. These cards are required if you go to Poland and want to send money from a PKO Bank Polski branch.
• The maximum amount for SWIFT transfers via the two banks is EUR 1 250, but the sender will have to pay a PLN 10 fee.
• Another option is to send money with the PKO Bank Polski online-banking service. But in this case, you will be able to send only Euros and only to your personal bank account in Ukraine. You will receive the money within 3-5 business days.

PrivatBank + Alior Bank

In cooperation with the Polish Alior Bank, PrivatBank has introduced a special money transfer service. The process includes a personal visit to an Alior Bank branch with a number of documents on hand.

• At the branch you will be required to register in the Alior application and convert Polish zloty at the bank’s exchange rate.
• To register in the application you will need your international passport and a proof of legal stay in Poland: karta pobytu or a visa.
• Then you can send money to a recipient who holds a bank account with PrivatBank.
• When making a EUR-EUR transfer, no fees are applied. For transfers in USD a 3% fee is applied regardless of the amount.
• A complicating factor for recipients is the need to have an account with PrivatBank.

Getin Noble Bank + Idea Bank

Ukrainian Idea Bank is a correspondent bank for Polish Getin Noble Bank.

• To send money from Poland to your family in Ukraine, you will need to open an account with the Polish Getin Noble Bank called “Proste Zasady”.
• An account needs to be opened with the correspondent bank Idea Bank.
• The recipient will have to issue a Card Blanche Transfer in Ukraine.
• The sender tops up their Polish account in zloty and, using online banking, sends it to a Ukrainian card.
• Recipients pay a 1% fee for the transfer.

Cons:

• Card issuing costs UAH 50 in Ukraine.
• No service fees apply only if there is one transfer per month. Otherwise, up to UAH 10 per month is charged.

Conclusion

Looking at the requirements for money transfers via banks, it is easy to see the advantages brought by money transfer services. The main concerns during the selection of service for money transfers from Poland to Ukraine are:

• Fees are generally applied by all services, but with the bank it usually takes at least 3 days to complete the transfer.
• It is not always possible to see the exchange rates before you initiate a transaction, visit a branch and so on.

That is why, when looking for means of international money transfers, services offered by banks are always an option but looking into alternative solutions can be more effective in terms of speed and cost whilst remaining secure as well. For example, you can try Profee service to send money from one card to another card. In most cases, the transfer is processed within a few minutes, and you’ll know the exchange rate in advance.