International Money Transfer Fees and Charges

Sending money overseas from Australia? While most people first look at the exchange rate, there's more to the story than just the rate you'll get for your Aussie dollars. Hidden fees and unexpected charges can take a surprisingly big bite out of your transfer amount, leaving you or your recipient with less than you planned.

Let's break down the key costs you need to watch out for when sending money internationally.

The biggest cost in international transfers often isn't labelled as a fee at all - it's built into the exchange rate. Banks and transfer providers typically add a markup to the real (mid-market) exchange rate, effectively charging you through a less favourable rate.

More specifically on rates:

• Traditional banks usually add the largest markups to exchange rates, often above the mid-market rate. 
• Online money transfer companies usually offer better rates due to lower overheads 
• Peer-to-peer services usually offer the mid market rate - which means you won’t be charged an exchange margin - but they do charge a relatively small foreign exchange fee.

Most providers charge a base fee for processing your transfer. These fees can vary significantly depending on:

• Whether you're making the transfer online or in a branch
• How much money you're sending
• Where you're sending the money to
• Which provider you choose to use.

Some providers offer fee-free transfers above certain amounts, while others charge either a flat rate or a percentage of your transfer amount. It's worth comparing different providers as the difference in fees can be substantial.

The bank in the country you’re sending the money to might also charge fees for their services in processing your international money transfer. Usually, the person receiving the money pays these fees, and there's not a lot you can do to minimise them.

If for some reason you decide you need to cancel your IMT, you can usually do so before it has been completed (often 2-5 days), but there are some conditions.

First off, there’s a cancellation fee, usually around $25 plus the overseas bank’s costs. Then, you should consider that the funds will be converted back to the original currency at the current exchange rate - so if rates have gone down, you could lose out there as well.

It’s also worth noting that cancellations usually come with the caveat that it’s a request only, which means if the IMT can’t be cancelled for some reason (usually because of the policies of the receiving bank), you’ll most likely still have to pay the fee.

Priority transfer fees

Need the money to arrive faster than the standard 2-3 business days?

• Express transfers (same or next day) typically cost an extra $15-30
• Some providers offer free fast transfers for larger amounts

Smart ways to save on your transfer

While your bank might seem like the convenient choice, online money transfer services have transformed the market with better exchange rates and lower fees. These services often pass on savings from their streamlined operations directly to customers, while providing useful features like rate tracking and transfer notifications.

The timing of your transfer can also impact your costs. Exchange rates fluctuate constantly, so consider setting up rate alerts for favourable rates. For significant transfers, forward contracts can lock in at a good rate for up to 12 months – particularly useful if you're planning for major payments.

What you'll need for your transfer

To ensure a smooth transfer, have these details ready:

Your information

• Photo ID (driver's licence or passport)
• Proof of address
• Source of funds for larger transfers

Recipient details

• Full name as shown on their bank account
• Bank account number
• Bank name and address
• SWIFT/BIC code
• In some countries, additional codes like:
  • BSB (Australia)
  • Sort code (UK)
  • IBAN (Europe)

Before you transfer

Remember, the cheapest option isn't always the best. Consider the provider's reputation, transfer speed, and customer support alongside their fees and exchange rates.

Head over to our International Money Transfer hub page to compare providers.