Sending money overseas this Christmas? Here’s how to save big in 2025

For many Australians, sending money overseas at Christmas is as much a tradition as putting up the tree. But while international money transfers have become cheaper over the past decade, the latest figures from the World Bank and the Australian Competition & Consumer Commission’s (ACCC) latest transparency push confirm that choosing the right provider still makes a big difference to how far your money goes this festive season.

Specialist digital providers continue to outpace the Big Four on both cost and speed.

The ACCC’s foreign currency conversion services inquiry 2019 revealed that, “the big four banks were consistently more expensive than some other suppliers for IMTs and foreign cash.”

In its 2024 update, the ACCC found that Australians could save around $108 on an average $3,138 transfer simply by switching from a major bank to a low-cost fintech service. That competitive edge has carried through to 2025, largely because specialist providers continue to charge smaller foreign exchange (FX) margins than banks.

Across popular transfer corridors, the price gap shows up whether you are sending a small $250 gift or a larger $10,000 transfer. The lesson is the same: the Big Four banks remain the most expensive option.

If you want to keep more money in your pocket, focus on the exchange rate margin, which is the difference between the provider’s quoted rate and the mid-market rate. It is the most common hidden cost, and for many households it determines whether a Christmas transfer becomes a budget-breaker.

Australia remains one of the more expensive G20 countries for remittances, with the World Bank reporting an average cost of 5.11% in Q1 2025, compared with global averages of 6.49% and a weighted 4.92%.

Following its market review last year, the ACCC released updated Best Practice Guidance for IMT providers in October 2024. The focus has expanded beyond headline prices, with two non-price factors now considered essential for consumer clarity.

1. Clear time-to-transfer information

Transfer speed matters, especially in the lead up to Christmas. Yet many major banks still quote delivery times in days, often between two and five business days. Specialist fintechs, by comparison, can process payments within minutes or hours, thanks to modern global payment rails.

If a provider does not publish a clear delivery estimate in its calculator, treat it as a warning sign. Never assume a bank transfer will be fast.

2. A transparent final amount received

The ACCC has also pushed for clearer disclosure on what the recipient actually gets once all costs and margins have been applied. The best providers now show the total amount that will arrive in the recipient’s account, without vague disclaimers about additional third-party bank fees.

When comparing services, look for calculators that show a guaranteed final amount. If the wording is vague, the true cost is likely higher than it appears.

If you’re planning to send money overseas this year, these steps will help keep more of your festive budget intact.

Stop using your primary bank – Unless your bank can beat the top specialist providers on exchange rates and fees, it is likely a far more expensive way to send money overseas.

Use a comparison service – A comparison website, like Mozo, can help you see the total cost of fees, FX margins, and delivery times across multiple providers in one place.

Prioritise transparency – Choose money transfer services that show the final amount the recipient will get and provide clear delivery estimates, in line with ACCC guidance.

“The ACCC encourages all consumers to compare prices and other non-price features. Comparisons are the easiest way for consumers to understand whether they are receiving a good deal and FX calculators can greatly assist in helping comparisons due to the price transparency they provide,” according to the commission’s latest report.

If you’re planning to send cash overseas this holiday season, you can compare a range of options by exploring and comparing the best international money transfer providers on Mozo.