Covercy International Money Transfers Review
Covercy is a London-based investment management and banking platform. The company offers several financial services, with a focus on real estate investing. But the company also offers an international money transfer service.
Covercy is regulated by the Financial Conduct Authority (FCA) and has several partners. But the company’s services are highly international. At a glance, Covercy boasts strong security through its 256-bit banking level encryption.
When it comes to international money transfers, Covercy’s focus is large transfers. The service was originally meant to facilitate the pressing needs of real estate investors. For them, money needs to move quickly enough to close deals, but not at the expense of security. They also offer two different services for personal and business clients. The latter also facilitates electronic verification so deals can be closed quickly as the transfer is being completed.
Let’s have a closer look at what Covercy has to offer.
Covercy Exchange rates and fees
Like most international money transfer providers, Covercy charges transparent transfer fees and small exchange rate margins.
The exact exchange rate depends on the currencies converted during the transaction.
Let’s look at a couple of common examples. Keep in mind that these are the minimum transfer sizes for the relevant currencies.
At the time of writing, the mid-market rate for GBP 3,000 would be USD 4,171.78. For the recipient to get GBP 3,000 with Covercy, you would send USD 4,225.38. So, Covercy’s exchange rate would be 1.285% higher than the mid-market rate, costing USD 53.60.
At the time of writing, the mid-market rate for CAD 5,000 was USD 4,064.21. For the recipient to get CAD 5,000 with Covercy, you would send USD 4,115.87. So, Covercy’s exchange rate would be 1.27% higher than the mid-market rate, costing USD 51.66
These exchange rate margins are about average for international money transfers. Most similar services would charge you around the same amount, 1% to 1.5%. Compared to some of the more popular choices, Covercy is very affordable. For example, most of Covercy’s exchange rate margins are less than half as expensive as PayPal’s, as PayPal charges a 3% margin.
Covercy charges flat, transparent transfer fees. The fee depends on the currency you use. But the rate stays the same no matter how small or large your transfer is.
The flat transfer fees Covercy charges are:
USD 15, EUR 9, GBP 5, AUD 6, CAD 6, CNY 100, ILS 39, CHF 5, RON 21, 129 CZK, DKK 35, HKD 40, HUF 1,420, JPY 616, NOK 39, NZD 7, PLN 38, SEK 44, SGD 7, ZAR 61, THB 530, TRY 14
You can cancel transfers that you’ve confirmed, but you will likely have to pay a cancellation fee. Bank rejections may also result in an additional fee. The fee will depend on the bank.
How do Covercy transfer fees compare to using other money transfer providers?
This one depends on which currencies you use. Because their exchange rate margin is comparable to the industry average, we need to compare the transfer fees.
If you’re sending money to Canada or Australia, you are going to get a truly excellent rate with Covercy. For example, sending CAD 5,000 to Canada would cost you CAD 6 plus approximately 1.255%, which would be a total of CAD 68.75. That’s a very competitive rate that beats most of your alternatives.
Despite having some great rates, some of their transfer fees are a bit high. However, this is almost entirely negated by very high minimum transfer size requirements. For example, you cannot transfer money to Canada unless you’re sending $5,000 or more. Regardless of which currency you’re sending to Canada, the flat fee ends up making a tiny proportion of the transaction balance.
Covercy pros and cons
Answers to key questions about Covercy
Can I open a Covercy account in any country?
Covercy is only available in a handful of countries. They can transfer money into:
Does Covercy have an app?
No. You must use the Covercy website’s transfer page to send money internationally.
Are there transfer limits?
Yes, there are minimum transfer sizes that vary by currency. For example, Canadian and British recipients can only be sent 5,000 Canadian Dollars or 3,000 British Pounds, respectively.
Covercy does not appear to have a maximum transfer limit. You should contact Covercy directly to inquire about large transfers.
How long do transfers take with Covercy?
Normal Covercy transfers take 3-5 business days, depending on bank networks.
SWIFT transfers come with a 72-hour delivery commitment.
What customer support options are available?
Scheduled virtual meetings
Online support ticket
Can I use a Covercy debit card when traveling abroad?
Covercy does not offer its own debit card.
How to open an account and transfer money with Covercy
Opening an account
Opening an account with Covercy is extremely easy. You don’t need to take any extra verification steps until you need to send money. So, you can access the exchange rate calculator and other resources by creating an account in less than a minute. You just need to provide your name and email address.
Simply go to the Covercy website and click the white “SIGN UP” button at the top right-hand side of the screen.
Step 1: Sign in to your Covercy account
Step 2: Select the currencies and the transfer amount
Step 3: Select your recipient or create a new one
Step 4: Review the transaction details
Step 5: Confirm the transaction
Step 6: Wait for the recipient to receive the funds
Customer service details for users of Covercy
Can I use Covercy for international bank transfers?
Yes, you can use Covercy for international bank transfers. It’s one of their only transfer methods.
Covercy offers decent rates and their services can be used for over 25 currencies. Their rates are relatively transparent, making it easy for you to compare their costs with other money transfer providers. The main drawback is that their minimum transfer sizes are very high. If you need to make large international money transfers, Covercy can be a great tool. But remittances and other regular, lower-balance transfers are not possible.