A recent study conducted by international payments platform Wise, in collaboration with research institute iVOX, has found that two out of three Belgians do not fully understand how international transactions work or the actual costs involved, including fees for card payments and foreign currency withdrawals.
The research highlights a widespread lack of awareness about hidden fees that could significantly impact consumers’ financial decisions when making international payments.
According to Wise, Belgian consumers could collectively lose up to €955 million in hidden fees by 2025 due to unclear and often unfavorable banking policies.
Hidden Costs and Unfavorable Exchange Rates
One of the key findings of the study is that more than half of Belgian respondents are unaware that banks and payment service providers often apply unfavorable exchange rates, which can add unexpected costs to international transactions.
While many consumers believe they are paying a fair price, the study indicates that hidden fees and non-transparent currency conversions inflate costs without clear disclosure.
“Hidden fees can quickly increase costs for travellers, making their dream holidays more expensive than anticipated,” Wise stated, emphasizing the need for greater transparency in financial transactions.
Surprise Charges and Lack of Transparency
The study also found that 42% of Belgians have been caught off guard by unexpected fees when making international transactions. Many consumers only become aware of these charges after checking their bank statements, leading to frustration and confusion.
Additionally, 47% of respondents reported that their financial institutions rarely or never use clear and transparent language to detail international transaction costs.
Complex financial jargon and unclear fee structures contribute to a lack of understanding, leaving many consumers unable to make informed decisions.
“Consequently, they are often overwhelmed by this jargon and give up trying to understand the charged fees,” Wise concluded.
Calls for Greater Transparency
The findings have sparked renewed calls for clearer pricing policies and greater transparency from banks and payment service providers.
Consumer advocacy groups have urged financial institutions to provide straightforward explanations of fees and exchange rates to help individuals make more informed choices.
Wise, known for its emphasis on low-cost international money transfers, has been advocating for greater transparency in the financial industry.
The company argues that hidden fees disproportionately affect individuals who travel frequently, work abroad, or send money internationally, and that greater clarity could save consumers millions of euros annually.
How Consumers Can Protect Themselves
Financial experts advise Belgian consumers to take proactive steps to avoid unnecessary fees. Comparing exchange rates, using fintech solutions that offer real-time pricing, and reading the fine print on bank policies can help mitigate losses.
Additionally, seeking out financial service providers that offer upfront pricing without hidden charges can be a more cost-effective option.
As international transactions become more common, consumer awareness and financial education will play a crucial role in helping Belgians navigate the complexities of cross-border payments while avoiding hidden costs.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
