Sending money via wire transfer within the US and internationally shouldn’t mean losing a big chunk of it to fees. Yet, many people are surprised by how much banks and other providers charge. Those hidden fees can really add up and impact the amount you pay for the transfer. The cost of wire transfers varies depending on the provider you choose.
Let’s take a closer look at what you’re really paying and explore smarter ways to move money internationally and domestically.
Summary:
• The real cost of wire transfers
• Average domestic vs. international wire transfer fees
• Comparing wire transfer fees by financial institution
• Why can there be extra costs to wire money internationally?
• Why are banks typically more expensive to transfer money internationally?
• What factors impact the cost of international bank transfer fees?
• How do OFX keep their fees so low?
• How to avoid wire transfer fees?
• Why choose OFX for international money transfers?
The real cost of wire transfers
Wire transfers can be expensive, because banks generally charge outgoing wire transfer fees. Some banks also charge for incoming wire transfers.
A wire transfer is a method of sending money to someone at another bank domestically, or internationally.
Average domestic vs. international wire transfer fees
- Domestic outgoing wire transfer fees typically range from $0 to $351
- International outgoing wire transfer fees are usually $35-501
- You can send wire transfers within the U.S. and to other countries, but international transfers generally cost more.
- Domestic wire transfers tend to be cheaper and faster, completed through a one payment system
- International bank wire transfers involve more parties, including a U.S. bank, a foreign bank, and wire processing systems in both countries.
- A domestic wire could arrive in a few hours, while international wires typically take one to two business days if the wire is sent before the bank’s deadline.
Save on fees when sending money internationally with OFX
Comparing wire transfer fees by financial institution
Below is a list of fees that some banks charge per transaction for wire transfers from personal accounts.
Additional fees may be charged, such as intermediary bank fees, or, if a teller helps process a wire transfer.
Bank of America wire transfer fees2 | Incoming domestic: $15. Outgoing domestic: $30. Incoming international: $15. Outgoing international: $0 if sent in foreign currency; $45 if sent in U.S. dollars. |
| Chase wire transfer fees2 | Incoming domestic: $15 ($0 if coming from Chase). Outgoing domestic: $25 online; $35 in a branch. Incoming international: $15 ($0 if coming from Chase). Outgoing international: $5 if sent in foreign currency (or $0 for transfers of $5,000 or more); $40 (or $50, with banker assistance) if sent in U.S. dollars |
| Wells Fargo wire transfer fees2 | Incoming domestic: $15. Outgoing domestic: $25; $40 in a branch. Incoming international: $15. Outgoing international: $0 if sent in foreign currency; $25 if sent in U.S. dollars; $40 in a branch for both U.S. dollars or foreign currency. |
| US Bank3 | Incoming domestic: $20. Outgoing domestic: $30 Incoming international: $25. Outgoing international: $50 dollars |
| Truist3 | Incoming domestic: $15 Outgoing domestic: $30 Incoming international: $20 Outgoing international: $65 |
| Capital One3 | Incoming domestic: $15 Outgoing domestic: $30 Incoming international: $15 Outgoing international: $40 |
| Citibank3 | Incoming domestic: $15. Outgoing domestic: $25 Incoming international: $15 Outgoing international: $35 |
Why can there be extra costs to wire money internationally?
Banks sometimes also charge currency conversion fees when you exchange one currency for another to cover their associated costs and to make a profit.
The currency conversion or exchange rate offered by banks is often marked up, meaning it’s less favorable than the mid-market rate you might see on Google or financial news sites. Depending on who you choose to transfer your money with, the exchange markup can be anywhere from 1.0% to 3.0%.
These examples show how a 3% fee can add up:
- If you’re sending US$1,000, a 3% markup will add US$30 to your overall transfer costs
- If you’re sending US$5,000, a 3% markup will add US$150 to your overall transfer costs
- If you’re sending US$10,000, a 3% markup will add US$300 to your overall transfer costs
How can an online money transfer company help save you money?
We’ve shown you the costs but let us show you how OFX can help save you money on each of the fees.
1. The incoming and outgoing fee to send the money.
Sending money with your bank can often incur a fee.
- How OFX saves you money
At OFX, we offer fee-free transfers*. We don’t charge incoming or outgoing transfer fees.
We also do our best to minimize your recipient’s fees by sending your money using our global network of 115 local bank accounts. See, banks often don’t charge such fees for local transfers, so whenever possible, OFX uses our local account to make your transfer.
*Occasionally, third-party banks may deduct a fee from your transfer before paying your recipient. This fee may vary and OFX receives no portion of it.
How OFX reduces fees on recipient transfer
It works like this: you pay into our local account in your home country, and we pay out from our local account in your recipient’s country, so your recipient typically doesn’t have to pay receiving fees.
Unfortunately, these fees vary from bank to bank, and they also depend on what kind of account your recipient has, which is why we can’t guarantee that you won’t pay a receiving fee when you make a transfer with us. But at least you know that we’re doing our best to deliver value for our clients.
2. The currency conversion rate markup fee taken by the money transfer provider.
When your bank tells you that you’ll spend $1 USD for every .884 EUR, a simple Google search may reveal that the real daily exchange rate is closer to .911 USD. That means that on a $10,000 transfer into EUR, you may lose around $270 by using your bank.
- How OFX saves you money
If you’re a personal customer, enjoy extra savings on your first transfer. New to OFX? Take advantage of a great introductory rate across 7 currencies (USD, EUR, CAD, GBP, AUD, NZD, SGD) on your first personal transfer. *Terms and conditions apply.
Why are banks typically more expensive to wire money internationally?
Banks have a few different hoops to jump through when it comes to international transfers.
Service limitations
Banks tend to focus on domestic financial management ahead of international, which means they can find themselves with technological limitations. This could result in them needing to charge higher fees to make a transfer.
Legacy issues
One of the most common charges for international transfers with banks is due to several factors, including legacy systems such as SWIFT, which involves multiple intermediary banks, each adding their own fees.
Bricks and mortar
Banks generally have higher overhead costs than specialized money transfer services as they have to pay and support their network of branches.
About 8 years after I started the business I was still making wire transfers through the bank. I remember looking through my books and couldn’t believe I was paying CAD$45 for every transfer. That’s when I looked for other options to find a secure way to make payments and keep my business moving forward, I am so happy I found OFX.
– Beck, an OFX Business Client
What factors impact the cost of international wire transfer fees?
Several factors influence the overall cost of transferring money internationally:
Delivery speed
Faster transfers often come with higher fees. Some providers charge extra for expedited services, so if time isn’t critical, you might save by choosing a slower option.
Currency and countries
The cost of your transfer can vary depending on the currencies involved and the countries to which you’re sending money. Transfers to less common currencies or countries might incur higher fees. For larger transfers you may get a better rate, so if you’re thinking about sending multiple transfers it may be worth sending as a lump sum to save on fees.
Payment provider
Choosing the right payment provider is crucial. Specialist providers like OFX often offer better exchange rates and lower fees than traditional banks. This makes OFX a more cost-effective option for international money transfers.
How do OFX keep their fees so low?
OFX uses a network of 115 bank accounts worldwide, where we hold currency reserves.
When you send a transfer at the rate you’ve locked in with one of our foreign exchange specialists, most of the time your money will go into a local account in your home country and stay there.
We then pay your recipient from our reserves in the destination country. That’s why your money arrives so quickly when you use us.
- We don’t pay fees to send money to our own accounts
- It protects our business from currency exposure and lets us pass those savings onto you.
- We can stay open during times of high currency volatility
- This system often allows us to process same day transfers 24/7
- Our operations are only online and over the phone saving overhead costs
- Your transfer is automated whenever possible, which reduces the risk of input errors, saves on staffing costs, and expedites processing.5
How to avoid wire transfer fees
There are cheaper ways to wire money internationally. Here are some ways to avoid excessive fees.
Fees can vary depending on how you initiate a wire transfer
Completing the transfer online is generally the most cost-effective option, while requesting it at a branch or over the phone may add an extra $10 or more to the fee.
Compare exchange rates
Before making a transfer, compare the exchange rates offered by different providers. Third party options such as OFX provide benefits that banks can’t, such as low or no transaction fees and the ability to transfer money outside of typical bank hours.
At OFX, we can offer you better rates – closer to the mid-market rate, which can save you money.
Go for transparency
You may also choose to use popular apps and services like Zelle, Venmo or PayPal. Your bank may offer Zelle; however, beware of the fact many banks have transaction limits that restrict how much you can send with Zelle.
Whichever provider you select, it’s helpful to check whether they are transparent about their fees and whether a ‘no-fee’ option involves giving you a less favorable exchange rate.
Why choose OFX for money transfers?
Beyond competitive rates and low to no fees, the perks of an OFX account includes:
- Making transfers on your schedule, not the bank’s
- Setting a target exchange rate with a Limit Order so you won’t miss out if the market reaches your desired exchange rate
- Lock in an exchange rate for future transfers up to 12 months in advance with a Forward Contract
- Ability to send recurring transfers
- 24/7 help from our OFXperts
Transferring money internationally or to the United States? Beat the banks with OFX
Transfer to over 170 countries online and save with OFX’s competitive rates. See how you can save here.
We’ve helped millions of people like Steven to save money on transfer fees
Steven Moffat started at NA Produce Buyers over 22 years ago and is now the Vice President of finance. After years of using their banks for day-of FX rates, Moffat began looking into alternative FX partners, “I knew someone who used OFX and had a really good experience so they referred me.”
As they say, the rest is history. NA Produce Buyers started working with OFX in 2011 and have continued to build up their business, customer base, and FX strategy alongside the support of their OFXpert, Jeff.
Wire Transfer Fees FAQs
Are international wire transfers free?
No, most providers charge a fee, though some offer promotions for fee-free transfers under certain conditions.
What you need to make an international bank transfer
You’ll need the recipient’s bank details, including the IBAN or SWIFT/BIC code, and information on the currency and amount to be transferred.
How long does an international wire transfer take?
Transfers typically take between 1 to 5 business days, depending on the method and provider.
What is the alternative to transferring money internationally with a bank?
Using an international money transfer specialist, such as OFX, can save you money. Specialist providers typically offer lower fees, better exchange rates, and faster transfer times than traditional banks.
Disclaimer: This article was written in August 2024. The information is based on our online research and is correct as time of publication. The information provided is for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. If you would like to request updated information, please contact us at customer.service@ofx.com.
This information does not take into account your objectives, financial situation, or specific business needs.
References
- https://www.nerdwallet.com/article/banking/wire-transfers-what-banks-charge
- https://wise.com/us/blog/wire-transfer-fees
- https://www.muralpay.com/blog/exploring-the-hidden-fees-in-international-wire-transfers
- https://www.ofx.com/en-us/cheapest-way-to-send-money-internationally/
