CBA drops exorbitant international transfer fees
CBA has reduced its fees by 70%, and it shouldn't take long for the remaining big banks to follow suit.
Australia's biggest bank has announced it will slash its exorbitant fees for sending money internationally by as much as 70%. Like what we saw when CBA announced it would abolish ATM fees for non-bank customers last month, this will put pressure on Westpac, NAB and ANZ to follow suit which will be a win for Aussie consumers.
CBA customers will now only pay a $6 fee when sending less than $1000 overseas, much lower than the previous fee of $22. Customers sending over $1000 will now only pay a $12 fee instead of the $22 fee. However, an international transfer conducted in a branch will still result in a $30 fee.
The move comes as CBA desperately tries to mend its shattered reputation following the money laundering scandal that has plagued the bank since mid-August. In a bid to regain consumer trust over the past few months CBA has abolished its ATM fees, announced the launch of a new low-rate credit card and now it has dropped its international transfer fees.
In August, leading online money transfer provider TransferWise called out the big banks for misleading Australian consumers by adding huge commissions to the exchange rates they offer to customers when sending money abroad. TransferWise's campaign urged consumers to put pressure on their bank to reveal the real exchange rate and commissions they add.
TransferWise's research revealed these poor exchange rates and pricey international transaction fees are costing Australians a whopping $3.1 billion a year. Westpac and CBA were identified as among the worst offenders.
CBA's move to drop its transfer fees is a small win for consumers, however, it's still not enough. Consumers may not be hit with the high $22 fee, but they will still be hit with the poor exchange rates the big banks offer. If you're looking to send money abroad, consider using an online international money transfer provider instead of your bank, to save on these exorbitant exchange rate mark-ups.