International CurrencyInternational Currency

How much does it cost to send money overseas?

 

The short answer: it depends on who sends your money. All banks and money providers have different fee structures, and they all take different margins on the daily exchange rate. Depending on the size of your transfer, you could save hundreds of dollars by comparison shopping before you send money with your bank.

There are a host of reasons why you’d need to send money internationally. You might be paying for a destination wedding, purchasing an overseas property or adding a coveted item to your collection from a dealer overseas.

But how much will it cost to send money internationally? Let’s break it down.

International money transfer fees

1. Money transfer fees can vary greatly depending on your provider

Whenever you send money internationally, your bank will typically charge a fixed money transfer fee. You could pay up to $50 to transfer the money, but the fee will depend upon the bank that you’re using, as well as how much money you’re sending.  
 
Some banks will charge a different rate depending upon the currency in which your money is sent, so you might pay a higher fee if you send the money in Aussie dollars rather than in your recipient’s local currency. If you want your money transfer expedited, you might incur yet another additional fee.

If you’re using a money transfer service, some fees depend on how you’re sending the money, whether it’s from a funded account, a credit card, or a debit card. This percentage can range from 0.5% to 3.9%. And that’s not the end of it.
Watch out for exchange rate margins

2. Watch out for the margin on the exchange rate

In addition to the international transfer fee, a margin on the daily exchange rate is also tacked on to most foreign transfers. This rate is typically around 5% at most major banks, so if you’re sending $10,000, you may lose up to $500. Yikes. At OFX, we know you could buy a lot with $500, so we keep our exchange rates and fees substantially lower than other money transfer providers.
Sending money overseas

3. Your recipient may also be charged to receive foreign payments

On top of all the other costs above, many banks charge their customers between $15 and $30 to receive international transfers. At OFX, we use our global network of local bank accounts to move your money at the local level in an effort to reduce these fees. Sometimes, that means your recipient may be charged less by their bank to receive the funds when you use OFX.
How much does sending money overseas cost

So how much does it cost to send money internationally?

The answer is, it depends on the company you use. Rather than using a bank and paying excessive fees to send your money internationally, make the smart move to OFX.
 
In addition to being able to book a transfer 24/7, OFX delivers low or no fees (where applicable) and a much more competitive exchange rate, so you can save up to 70% on the exchange rate margin and keep more of your money.*
 
With options like OFX, there’s no need to rely on your bank anymore to send money, so now the only question is: what are you going to do with all that extra cash?
 
Sources:
  • https://www.bankofamerica.com/foreign-exchange/money-transfer.go
  • https://www.paypal.com/us/webapps/mpp/paypal-fees
  • http://money.usnews.com/money/blogs/my-money/2014/07/17/5-cost-factors-to-consider-when-transferring-money-around-the-world
  • https://www.nerdwallet.com/blog/banking/money-transfers-what-banks-charge/

*Average savings based on published rates of ANZ, Westpac, NAB and CBA on a single transfer of AUD$10,000 to USD between 6.9.18 and 8.10.18 excluding weekends. Transaction costs excluded. Quoted savings are not indicative of future savings.