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With the rise of digital remittance services, sending money abroad has always been challenging. Among the many options available, Xoom has emerged as a popular choice for those who need to send money quickly and securely across borders. However, as convenient as Xoom is, it comes with certain limits that users need to be aware of to avoid surprises.
In this blog, we'll explore Xoom's limits and how to work within them. We encourage you to consider whether alternative solutions better suit your needs.
Xoom Transaction Limits
Xoom caps the amount you can send daily, monthly, and six-monthly. Your account level determines these limits, and upgrades require additional verification steps. Below are the limits for both bank deposits and cash pickups.
Xoom Bank Deposit Limits
Account Level
Daily Limit
Monthly Limit
6-Months Limit
Level 1
$2,999
$6000
$9,999
Level 2
$10,000
$20,000
$30,000
Level 3
$50,000
$60.000
$100,000
Xoom Cash Pickup Limits
Account Level
Daily Limit
Monthly Limit
6-Months Limit
Level 1
$2,999
$6000
$9,999
Level 2
$10,000
$20,000
$30,000
Level 3
$10,000
$20.000
$50,000
Xoom - Fees and Exchange Rates
When using Xoom to send money internationally, fees and exchange rates can significantly affect the amount your recipient receives. Let’s break this down with an example of sending money from the US to India.
1. Fees:
If you’re transferring less than $1,000 to India, the fees can range depending on the payment method:
PayPal balance or bank account: The fee is $0 for transfers below $1,000.
Credit or debit card: This can jump to $30.49 for the same amount, making it a pricier option.
For amounts over $1,000, the fees remain the same with a bank or PayPal balance ($0), but the card fees still apply, making bank transfers a more affordable choice for larger sums.
2. Exchange Rates:
Xoom adds a fee to the exchange rate, usually between 1.78% and 2.92%. For smaller transfers (under $50), the markup can be as high as 2.92%, meaning you get slightly less money than the actual market rate. However, if you send more significant amounts (like $2,000 or more), the markup is lower, around 1.27%.
This means the more you send, the better the exchange rate, so your recipient in India will receive more of the money you send. This is crucial, impacting how much amount your recipient will ultimately receive.
Platforms like Vance, with a flat £3 fee, offer a predictable cost structure, which is especially advantageous for smaller transfers. Unlike many competitors, Vance provides exchange rates that match Google’s mid-market rates exactly, with no hidden markups.
This ensures that you receive the best possible exchange rate, unlike other services that add a percentage margin to the rate. By eliminating these markups, Vance ensures your recipient receives more, making it vital to compare these elements across different platforms to ensure the best deal.
Managing Your Xoom Experience
Plan Payment Methods: If you're sending smaller amounts, use PayPal or a bank account to avoid steep credit/debit card fees.
Monitor Exchange Rates: Xoom’s exchange rates vary depending on the amount. It’s always good to check current mid-market rates to know the markup.
Consider Alternatives: If you regularly hit higher transfer limits, exploring alternatives like Vance could offer more flexibility and better rates for large transfers.
About Vance
At Vance, we are solving banking for Global Citizens - the NRIs. For people who constantly hop around the globe, banking becomes increasingly complicated. Managing multiple accounts, paying obscene forex fees, and dealing with complex regulations are the norm. Our mission is to be the one-stop shop for all your financial needs worldwide. We’ve started by enabling our users to transfer money to India from the UK, UAE, and parts of Europe. Transfer money to a reliable network of banks, including the State Bank of India (SBI), HDFC Bank, Kotak Mahindra Bank, Yes Bank, and many more. Get £10 as a sign-up bonus instantly after completing your KYC verification, making your first transaction even more rewarding. The best part? Your first transfer with Vance is free!
In Conclusion
While Xoom is a powerful tool for sending money internationally, understanding its transaction limits is essential for ensuring smooth and efficient transfers. Considering these limits and options like Vance, which may offer greater flexibility, you can better optimise your transfers to suit your needs. Ultimately, the best service is the one that aligns with your specific requirements—whether it's limits, fees, or convenience.
This content is for general informational purposes only and should not be taken as financial, legal, or professional advice from Vance or its affiliates. While we strive for accuracy, the information may change over time. Vance makes no representations, warranties, or guarantees, whether express or implied, regarding the information's accuracy, completeness, or reliability. The comparison is based on publicly available data and is intended to assist users in making informed decisions. It is not a substitute for professional advice or consultation with financial experts. Please review your region's terms of use and product availability or visit the service provider's website for the latest pricing and service information.
FAQs
Q1. What is the maximum amount I can send through Xoom in a single transfer?
The maximum transfer depends on your account level, with limits ranging from $2,999 to $50,000.
Q2. Are there different limits for different countries with Xoom?
The limits may vary depending on the destination country and transfer method (bank or cash pickup).
Q3. Based on my Xoom account verification, How do the transfer limits change?
Higher verification levels allow you to send more significant amounts, with levels going up to $50,000.
Q4. Are there any daily or monthly transfer limits with Xoom?
Yes, Xoom has daily, monthly, and six-month transfer limits, which increase with your account level.
Q5. How can I increase my Xoom transfer limits?
You can increase your limits by upgrading your account, which requires providing additional verification documents.
Q6. Are there limits on how much money I can receive through Xoom?
The recipient's limits depend on the country and payout method, but there are generally caps on cash pickups.
Q7. How do Xoom's transfer limits compare with other remittance services?
Xoom’s limits are generally lower than some alternatives, like Vance, which offers higher base limits for international transfers.
Aayush is a strategic growth marketer with over 6 years of experience working in the US and European markets for various financial services companies. He has a proven track record of success in helping businesses grow, increase revenue, and improve marketing strategies.
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