Avoiding Hidden Fees: Comparing Bank Transfers vs. Vavita for Tuition Payments

If you are confused about how to pay your school fees to any country globally including the United Kingdom, EU countries, Canada or the United States, here is a guide that aims to simplify that process, and help inform you about the best and cheapest tuition payment methods for Nigerians studying abroad.

Let us consider traditional bank transfers, other online transfer options, and Vavita.  What are their pros and cons, which is best for what destination country, which is the fastest and safest way to pay tuition abroad from Nigeria?

Whether you're a parent, an online educator, or a student wondering how to send money abroad, this guide is for you to navigate the confusing landscape of international tuition payments.

Traditional Bank Transfers from Nigeria Abroad: Pros and Cons

Traditional banks like GTB, Access Bank, Stanbic IBTC offering Form A to pay tuition fees have been a popular choice for tuition payments abroad. These banks offer structure, trust, ensuring funds reach the recipient securely.

However, there are several drawbacks of using bank transfers you should know about :

1. Expensive Exchange Rates and Fees

One of the biggest drawbacks of Nigerian bank transfers is high cost. Banks often offer the same inflated exchange rates as the parallel market - which can cost you thousands of Naira per transaction. Also, expect that these banks charge processing fees which will increase your total amount sent.

2. Long Processing Times

Students have reported that bank transfers may not be the fastest option as banks can take several weeks or even months to process international transactions. For example, First Bank of Nigeria takes up to 16 weeks to process school fee payments! 

3. Lack of Transparency and Uncertainty

Many banks do not provide upfront exchange rate details which hampers your ability to budget accurately. They will also charge SWIFT fees and other handling charges. Intermediary banks - those which your bank might use in the destination country - can also deduct fees - meaning that the school doesn’t receive the full amount you send. Be aware that transactions are further subject to forex restrictions from the Central Bank of Nigeria (CBN), meaning delays and rejections are common.

4. Security Considerations

While traditional banks are generally secure, there have been reported cases of reversed or delayed transactions, and even the smallest mistake can be costly or result in significant delays to your payment.

2. Paypal & Similar Money Transfer Services 

Money transfer services are alternatives to traditional bank transfers and offer fast transaction times. However, using these services comes with associated fees, hidden costs and limitations for Nigerians. For example, Nigerians are not allowed to directly create accounts on platforms like Paypal and have to figure out how to avoid paying high currency exchanges with PayPal. The fee structure can also be complex as some services charge a flat fee, while others may have variable rates based on the amount sent.

When choosing a money transfer service, consider:

• Transfer speed: How fast is the money delivered?
• Rates: Are the rates worse than the competition?
• Fee structure: Are there flat or variable fees?
• Customer support: Is there help available if issues arise?
• What happens if things go wrong: Can you afford for your money to be blocked or locked up for months at a time?

It's also worth checking reviews and ratings for reliability and transparency to ensure parents' hard-earned money goes further in supporting their child's education abroad.

3. Online Payment Platforms: Introducing Vavita: A Comprehensive Solution for Nigerian Students Paying Tuition Abroad

For Nigerians seeking efficient and reliable international tuition payment methods, Vavita stands out as a trusted option, addressing the unique challenges students and parents face when sending funds abroad.

Unlike other providers that focus solely on tuition payments, Vavita also facilitates payments for living expenses and accommodation costs, ensuring students can cover all essential financial needs while studying abroad.

Why Vavita?

• Competitive Exchange Rates – More affordable than the parallel market, friends and family transfers, and informal methods.
• Fully Licensed and Regulated – Licensed by FINTRAC in Canada, ensuring  your funds are safe & secure.
• Transparent Fee Structures – No hidden charges, ensuring predictable financial planning for students and parents.
• Fast and Convenient Transactions – Avoid delays and missed deadlines, with instant proof of payment for visa applications and university records.

By choosing Vavita, students and parents can ensure their funds arrive safely at the best rates, making it a secure and reliable option for university tuition, accommodation and living expense payments abroad.

Please refer to Vavita’s terms of use and check product availability in your region for the most accurate and current information on fees, pricing, and other details.

This content is provided solely for informational purposes and does not constitute legal, tax, financial, or any other type of professional advice from Vavita or its affiliates. It should not replace advice from qualified financial advisors or other professionals.

Vavita and its affiliates do not make any express or implied guarantees about the accuracy, completeness, or timeliness of the content in this publication.