You can send money overseas straight out of your bank account, but often there are high fees attached to this convenience. To help you understand the costs, we've pulled together the online wire transfer fees of some of the top banks in Australia to show how they compare against one another and against independent money transfer services.
What does an international money transfer cost?
Generally, it's much cheaper to send money domestically because fewer financial systems are involved. However, international transfers are different and involve banks and wire processing services for each country. With more banks come more fees.
The data contained within the table relate to fees captured on 1 February 2023.
What bank fees to expect for international money transfers
The fees your bank charges depend on a number of factors. We've compiled a list of all the fees that might apply when sending or receiving an international money transfer:
Originator bank fees. The "originator" is the bank from which you initiate the international transfer. Some banks charge more depending on how you initiate the wire transfer: online, via mobile banking or in person. Costs typically increase when visiting a branch so it's best to check these against the fees for initiating a transfer online.
Intermediary bank fees. Intermediary banks facilitate international money transfers. They help you get your Australian funds to your recipient in another country and act as the go-between bank or institution. The fees these intermediary banks charge vary between countries. And the fees also tend to be hidden until right before you initiate a wire transfer.
Beneficiary bank fees. This is your recipient's bank which might charge a fee to receive an international money transfer. Fees will vary depending on the country and the amount being received.
Exchange rate margin. An exchange rate shows how much one currency is worth in another. Nearly all banks skew the published exchange rate for a profit and aren't always forthcoming about the added margin. You may need to call your bank or initiate a transfer online to see the best exchange rate offered. In Australia, banks can add a margin of 3–6% while the margin added by online money transfer providers ranges from 0.5% to 4%.
Finder survey: Do Australians prefer using a bank or money transfer specialist to send money overseas?
Response
Female
Male
I do not send money overseas
46.92%
36.18%
Bank
31.28%
35.62%
Money transfer specialist
15.47%
22.63%
Neither
6.33%
5.57%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
How to choose a money transfer platform
When trying to find a money transfer service to use, you'll need to look at the features offered and see if they closely match your transfer needs. Consider the following:
Transfer fees. This is the charge for carrying out the transfer and will vary between providers. Some may charge a fee to transfer your funds to another country while others may offer fee-free transfers. Compare which is better by comparing the overall amount that your recipient will receive with each provider.
Exchange rate margin. Ideally, you want your recipient to receive the most out of the Australian dollars (AUD) you send. This depends on the exchange rate between your AUD and your recipient's local currency and any margin added by the transfer service. The stronger the exchange rate, the more your recipient will receive.
Recurring vs one-time transfer fees. If you need to send regular international money transfers to the same recipient, does the transfer service offer any savings for setting up recurring wire transfers?
Transfer speed. Online money transfer services often use the latest financial technology to get your money where it needs to go fast. If time is of the essence, consider providers that offer quick transfers. Fees for faster or instant transfers can sometimes be higher than transfers that reach your recipient the next day. Check that you're happy with the fees before initiating the transfer.
Compare banks to independent money transfer services
Banks offer a secure and familiar way to complete wire transfers with friends, family members and merchants. However, you can expect to pay high transfer fees on top of weaker exchange rates than you would get by using an online money transfer service.
There are more ways than just your bank to send money domestically and internationally. Compare your options before paying high fees.
Frequently asked questions
To send a wire transfer, you'll need your recipient's full personal and banking information, including their bank's name and SWIFT code (if international) and their account information.
Short for Society for Worldwide Interbank Financial Telecommunication, a SWIFT code is an international bank code used for incoming transfers. Every bank has a unique SWIFT code that can be used to identify it in a global financial transaction such as an international money transfer.
For international money transfers, it's better to send money in your recipient's currency. This takes the burden of converting the currency away from your recipient. It's often cheaper to wire in a foreign currency too.
The processing time for a wire transfer varies between providers and depends on several factors, such as whether the wire transfer is domestic or international. Some wire transfers can be processed within the same day if requested before the bank's cut-off time. Others can take up to 5 business days.
Helen Champion is an associate editor at Finder. She has worked in communications for over 16 years and currently writes on a range of topics including insurance and money transfers in the hope of empowering people to make better financial decisions. During her broadcast career, she helped to produce hundreds of news and breaking news reports for Associated Press TV and ITV News. And in public relations, she managed several high-profile public relations campaigns for Macmillan Cancer Support, the General Medical Council and overseas for Qatar Foundation on behalf of BLJ Worldwide. Helen has a Bachelor of Arts in Journalism from the University of Lincoln, a passion for practising karate in the dojo and a deep love of making mischief with her sons.
What are the best options for sending or receiving a large amount of money overseas? Read this $50,000 case study with exchange rates and fees comparison.
Send an international money transfer to someone without a bank account. Get it there instantly and they can pick it up in person, in cash. Get quotes now.
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