How to avoid International Wire Transfer Fees & Intermediary Bank Fees [2024]

International bank transfers allow you to send or receive money anywhere in the world. But how much do international bank transfers really cost?

The true cost of international transfers can be pretty tricky to work out, as several different fees can apply every time you send a payment overseas. Plus, the costs can vary based on the provider you pick, the destination, the currencies involved and how fast you need your money to arrive.

This guide runs through the fees to look out for when sending an international bank transfer, including a comparison of a major US bank against a couple of specialist services.

Picking a specialist like Wise, Remitly or XE can be a smart way to avoid some of the costs involved with sending money overseas with a bank – and may mean your money arrives faster too.

Key points: International wire transfer fees

How much does an international money transfer cost? A Comparison

It’s important to compare the different options available before transferring money abroad, to make sure you find the best money transfer option for your specific payment. Transfer fees and exchange rates – as well as third party costs – can vary widely, so doing some research is essential. And if you’re not sure what fees may apply to your international wire, don’t worry – we have more on that coming up later.

Firstly, let’s compare the fees charged by a large US bank, compared to some specialist providers for international money transfers. To give context, we’ll imagine an example payment – sending 1,000 USD online, to a friend in the UK, to be deposited into their GBP bank account directly.

*Fees and rates correct at time of research – 16th October 2024

As you can see, in the example above, your recipient will get more if you send your payment with a specialist provider compared to a bank. Usually this is because of the extra fees rolled up in the exchange rate used to convert your dollars to pounds. These charges are tricky to spot, and push up the costs considerably.

Here’s a reminder of the fees for the specialist providers we looked at:

• Wise transfer fees: 6.69 USD, with mid-market exchange rate (no exchange rate markup applied)
• OFX transfer fees: No transfer fee + small exchange rate markup applies
• Remitly transfer fees: 3.99 USD + a small exchange rate markup
• Xe transfer fees: No transfer fee + small exchange rate markup applies
• WorldRemit transfer fees: 2.99 USD + a small exchange rate markup

How to avoid international wire transfer fees

You may not be able to avoid currency transfer costs entirely – but as we saw in the table above, you can cut the costs of sending an international wire significantly, by using a specialist service.

Specialist currency transfer providers focus only on sending money overseas, and have invested in new ways to process payments, which cuts costs. They can then often pass this onto customers in the form of better exchange rates and lower overall costs.

Using a currency transfer provider is extremely simple, too. You can set up an account and start sending money as soon as your account is verified for security, paying for your transfer directly from your bank account or with a credit or debit card. Specialist providers are fully regulated, and, in many cases, the recipient can get money directly into their bank account, pick it up as cash, or enjoy other ways of accessing their funds.

If you want to limit your international money transfer fees, it’s worth checking out providers like Wise, Remitly, OFX, XE and WorldRemit. Here’s why.

1. Wise – send money overseas using the mid-market rate

With Wise you can send money to 160+ countries, and you’ll get the mid-market exchange rate – the one you might find on Google – with low transparent fees from just 0.33%, when you need to switch your money from US dollars to a different currency.

Wise payments are arranged online or in the Wise app, and can arrive fast – more than 50% of payments are instant, or land within a few seconds, and 90% arrive in 24 hours*.

If you’re sending high value payments, or multiple payments in a given month, you may even get discounted fees. Transferring over 20,000 GBP (about 26,000 USD) in a month could mean you get discounts of 0.1% to 0.17% of the transfer fee. Get more details on Wise large transfers.

If you need more, you can also open a Wise account to hold 40+ currencies, and get paid with local and SWIFT account details in 20+ currencies.

Wise outgoing transfer fees: Send from 0.33%, with volume discounts when sending over 20,000 GBP (about 26,000 USD) in a month

Wise exchange rates: Mid-market rates with no markup

Wise transfer limits: Limits vary by currency, but are usually around 1 million GBP (about 1.3 million USD)

Is Wise safe to use?: Yes. Wise uses industry level security measures, including 2-factor authentication and encryption, to keep accounts safe

Learn more about Wise here: full Wise review.

2. Remitly – send to 170+ countries with variable pick up methods available

Remitly allows customers to send to 170+ countries, including over 40 in Africa. There are several different ways your recipient can get their money, including cash collection, mobile money wallets and bank deposits.

While delivery speeds do vary, this can be a quick way to get cash into the hands of someone – even if they’re on the other side of the world.

It’s worth noting that Remitly has a low transfer limit from the US, at 30,000 USD – which may be lower for some payment receive methods.

Remitly outgoing transfer fees:Variable fee, based on destination country, payment method and how the transfer will be received

Remitly exchange rates: Exchange rates include a markup

Remitly transfer limits: 30,000 USD per transfer

Is Remitly safe to use?: Yes. Remitly has thorough verification processes and is safe to send money to friends and family, and people you trust

Learn more on Remitly review.

3. OFX – specialist transfer service with personalized services

OFX provides a superb online experience for transferring your money, with excellent customer service. If you’d prefer you can also talk to a broker 24/7 – handy if you want to discuss your payment options or if you need some reassurance about your transfer.

OFX currency transfers are fast and intuitive, they might offer a better exchange rate than the banks and most transfers will be with the recipient in one to two business days.

There’s no upfront fee to send your transfer, although one drawback is that you cannot pay for your transfer with a debit or credit card.

OFX outgoing transfer fees: No transfer fee from the US

OFX exchange rates: Exchange rates include a small markup, which is a percentage charge added to the exchange rate

OFX transfer limits: Usually unlimited – if any limit applies, you’ll be notified in the OFX app or when you talk to a broker

Is OFX safe to use?: Yes. OFX is a global business which is trusted and safe to use, with 24/7 phone support if you ever have questions of problems

Learn more on full OFX review.

4. XE – transfer provider without transfer fees or minimum amounts

XE has been around for more than 25 years and does not charge any fixed fee for sending money overseas. You can transfer as much as 535,000 USD per payment, and XE only makes money on the exchange rate they offer you.

They support businesses and individuals and they provide friendly and accessible customer service. That said, it’s worth noting that you can only pay by bank transfer or wire if you’re sending 3,000 USD or more.

XE outgoing transfer fees:No transfer fee from the US

XE exchange rates: Exchange rates include a small markup, which is a percentage charge added to the exchange rate

XE transfer limits: 535,000 USD per payment

Is XE safe to use?: Yes. XE is owned by one of the largest money transfer companies in the world, and has security measures built into all of its processes

5. WorldRemit – transfer provider with cash pick-up options

WorldRemit is especially good for transfers to regions such as Asia, Africa and South America, and there’s no minimum transfer amount.

They provide round-the-clock customer support in over 20 countries and have an online calculator so you know exactly how much your transfer will cost.

Recipients will also have some choice when it comes to how they receive their funds, like cash pickup, although not all options are available in all countries.

WorldRemit outgoing transfer fees: Variable fee, based on destination country, payment method and how the transfer will be received

WorldRemit exchange rates: Exchange rates include a markup

WorldRemit transfer limits: Variable limit, based on destination country and receive method

Is WorldRemit safe to use?: Yes. Send your transfer through WorldRemit’s secure network, and track it in the app

Learn more on WorldRemit review.

How to avoid intermediary bank fees

Intermediary bank fees – which may also be called correspondent bank fees – can add an extra 15 USD – 30 USD to the total cost of your payment when you send money overseas with the SWIFT network. The exact fee you’ll pay depends on the way your transfer is routed, which means you might not always be able to know the total cost in advance. Intermediary fees are deducted from the send amount as it’s processed, which means your recipient could get less in the end than you expected.

Intermediary bank fees creep in when your transfer is processed through SWIFT. In this system, transfers are passed through one or more intermediary banks until they reach their final destination – much like taking connecting flights or trains. Specialist providers like Wise, OFX and XE have often built their own payment networks to avoid SWIFT, which allows them to keep the costs down and process payments faster, too.

Here are a few providers to check out if you want to avoid correspondent bank fees:

Wise: Send to 160+ countries with the mid-market exchange rate and fast deposit times

Remitly: Send to 170+ countries, with a broad range of payout options

OFX: Send in 50+ currencies, and get 24/7 phone support if you ever need it

XE: Send easily to a broad range of countries and currencies, with cash collection options

WorldRemit: Send money on popular payment routes with quick delivery and collection

All of these providers are safe to use, and offer easy digital services. Apply online, get verified and start to use the service from your phone or laptop. You’ll be able to get an instant quote for the costs and exchange rates for your transfer, and can pay using popular methods like bank transfer or cards.

Cheapest way to send money internationally

International transfer fees vary widely based on the value of your payment, where you’re sending money to, the amount of money you’re sending, and the specific bank or provider you pick.

You may find that specialist services like Wise, XE and WorldRemit offer cheaper overall costs, with transparent fees and a better rate compared to a bank. The easiest way to check which service will be cheapest for your specific transfer is using a comparison tool – such as the Exiap comparison engine which lets you enter your payment details and generate quotes from different services.

Here’s how to use Exiap to find the cheapest option for your transfer:

1. Open the Exiap comparison engine online
2. Enter the country or currency you’re sending money to
3. Enter the amount you need to send
4. Click compare

You’ll be shown a list of providers, ordered by the amount your recipient would receive with each, based on your specific transfer. You can compare your options and then choose what suits you best and go to their site to make the transfer.

International wire transfer fees explained

Banks are obliged to tell you the fees you’ll pay for any international bank transfer you make – but the real costs of your payment can still be pretty confusing and complicated, thanks to several different fees and – often – a whole bunch of different ways to set up your transfer.

As a general rule, transferring money in person will be more expensive than doing so online or through your bank’s mobile banking service. You’ll also sometimes find that transferring money to another account within the same bank is cheaper than transferring money to a different bank.

That said, the total cost of sending money overseas can still be pretty staggering. According to World Bank figures, the average cost of an international bank transfer can be around 6% of the amount transferred. These costs are usually divided into 3 or 4 different fee types – let’s break them down one by one.

1. Sender fees

The sender fee – usually described as a transfer fee – is normally transparent and set out in your account terms and conditions. However, sender fees may vary based on how you set up your payment – online or in person, for example – the value of the transfer, and where the money is headed.

Here’s a reminder of the upfront transfer fees for the providers we looked at earlier:

• Chase international transfer fees: 5 USD
• Wise international transfer fees: 6.69 USD
• Remitly international transfer fees: 3.99 USD
• Xe international transfer fees: No transfer fee
• WorldRemit international transfer fees: 2.99 USD

2. Receiving fees

Depending on how you set up your payment, there are also likely to be receiving fees, including third party charges and costs applied by the recipient’s own bank. Third party charges can often creep in when you send a SWIFT payment, as the money can be routed through one or more partner banks, called intermediaries or correspondent banks, which can deduct a service fee as they process the payment.

In some cases, the sender can choose to cover some or all of these third party fees – but if not, they’re effectively paid by the recipient, as they are deducted from the payment before it’s deposited. That means the recipient gets less than you might expect.

3. Intermediary bank fees (or correspondent bank charges)

If your transfer is processed through the SWIFT network, you may find that intermediary bank fees also creep in. These are paid to intermediary banks which help to process your transfer – and can’t always be predicted in advance. Because these charges are often deducted from the amount sent as it’s passed through the SWIFT network, this may mean your recipient gets less than you expected in the end.

Later on we’ll give some tips on how to avoid intermediary bank charges.

4. Exchange rate markups and currency conversion fees

Finally you’ll usually run into exchange rate fees when you send a payment overseas with a bank. These costs can be called an exchange rate markup or spread. Exchange rate fees are tricky to spot as they are usually a percentage fee added onto the exchange rate applied to change your dollars to the currency you need. Exchange rate fees can mount up quickly – until they’re often the highest of all the fees you’ll pay on your transfer.

In general, the overall costs of sending an overseas transfer with a bank can be less transparent than using a specialist provider like Wise or OFX. Specialist services also tend to offer better exchange rates compared to the banks – some, like Wise, use the mid-market rate, and split out the full costs of the payment transparently so it’s easy to check and compare.

Here’s a reminder of how the providers we picked earlier handle exchange rates:

• Chase exchange rate: Exchange rate includes a markup
• Wise exchange rate: Mid-market exchange rate, with a small transparent conversion fee
• Remitly exchange rate: Exchange rate includes a markup
• Xe exchange rate: Exchange rate includes a markup
• WorldRemit exchange rate: Exchange rate includes a markup

Ultimately the fees you pay – and how high they are – can vary pretty widely depending on the provider you pick and the details of your payment. However, it’s helpful to know that specialist providers can often have lower overall costs compared to banks. This is usually because they use lower exchange rate markups – or don’t add any markup at all – which keeps the overall cost of payment down

How to avoid incoming international wire transfer fees

It’s worth checking with your bank if they have any incoming wire transfer fee. Fees vary a lot, with some banks waiving the costs – at least for low value payments. To give an idea, though, Bank of America has incoming wire transfer fees of 15 USD for local payments, and 16 USD for overseas wires. This can mean you get less than you expect in the end.

A smart alternative is to use multi currency accounts like the Wise Account to get local account details in foreign currencies to get paid for free or with low fees. Your account will come with local or SWIFT payment details, which you can give to the person sending you money.

These details include all the sender needs to process a local payment in their home currency. If you’re getting paid from the UK, you’ll get an account number and sort code, for example, which your British friend can use to send a local payment in GBP. You’ll receive the money without currency conversion, and can then spend it, hold it, or convert it whenever you’re ready to.

With a Wise account specifically, you’ll be able to get local account details in 8+ currencies, plus SWIFT details for other currencies. You can give these to anyone sending you money to receive payments to your account easily, and with low or no fees. Hold your balance, convert and withdraw, or use it the next time you need to send money to someone else overseas.

Learn more about How to receive money internationally with Wise Account.

How to transfer money internationally without fees

As a general rule, it’s not possible to transfer money internationally without fees, because even services that claim to offer fee-free services charge fees which are rolled up into the exchange rate being used to convert your currency. Some providers offer promotional rates for new customers, though, which could offer a lower cost way to try a new service. You may even get a fee-free transfer.

Wise: Get low fees on all transfers – or use this Wise promo code to send up to 2,000 GBP for free

Remitly: Variable new customer promotions available, which may mean you get a discount

OFX: No transfer fee (exchange rate markups apply)

XE: No transfer fee (exchange rate markups apply)

WorldRemit: Variable new customer promotions available, which may mean you get a discount

Learn more: How to send a free international money transfer

What factors impact the cost of international bank transfer fees?

When you send money overseas, there are several factors that can influence how much you’ll pay:

• Delivery speed: some providers and banks offer expedited services which might get your money moving faster, but can cost more
• Currencies and countries involved: Many banks and money transfer services have variable rates and fees depending on the country you’re sending to, and the currency you need to have deposited at the other end
• Payment provider: which payment provider you select can make a huge difference to the overall cost of your transfer – specialist services often beat the banks on costs and offer better exchange rates, too

Conclusion on fees for international wire transfer

Sending a payment overseas with your bank may be safe and familiar – but it could mean you’re in for higher fees and a worse exchange rate, compared with a specialist service like Wise or Remitly.

Banks usually arrange payments through SWIFT, which can mean you pay several different charges, and a fairly slow delivery time of 3 to 5 days.

Specialist providers on the other hand, have come up with alternative ways to process payments, which brings down the overall cost – and which means they can often offer better exchange rates, too.

FAQs on international wire transfer fees

Which bank is cheapest for international transfers?

There’s no single cheapest provider for international transfers. It’ll usually come down to the specific payment you need to make. Specialist services like Wise and XE can often offer exchange rates which beat the banks, and lower overall costs. Compare a few options before you get started to make sure you get the best available deal.

We have guides on international transfer services of major banks in the US:

• Bank of America International Wire Transfer
• Capital One International Wire Transfer
• Charles Schwab International Wire Transfer
• Chase International Wire Transfer
• Citibank International Wire Transfer
• Fidelity International Transfer
• Fifth Third Bank International Wire Transfer
• Navy Federal International Wire Transfer
• PNC International Transfer
• TD Bank International Wire Transfer
• Truist International Wire Transfer
• USAA International Transfer
• Wells Fargo International Wire Transfer
• Ally Bank International Wire Transfer

How much do US banks charge for international money transfer?

The fees US banks charge for international wire payments vary a lot. Usually online and mobile payments have a relatively low – or even no – upfront transfer fee. However, there are still costs rolled up in the exchange rate markup that’s applied. Arranging a payment in a branch or by phone usually comes with far higher costs. If you’re sending money overseas from the US, check your own bank’s fees compared to a specialist service to see if you can save.

Who covers the fees of an international bank transfer?

There are several fees involved with sending an international transfer, which can mean that both the sender and recipient end up paying some of the costs. If you want to limit the costs of your international payment, try using a specialist service like Wise which cuts the overall fee, and is completely transparent in what you’re paying for your overseas transfer.

How can I avoid a wire transfer fee?

You may not be able to avoid the costs of international payments entirely – but you can often cut the overall price you pay by using a specialist service like Wise or XE instead of your local bank.

Claire Millard

Author

Claire Millard

Fintech Content Writer

Claire Millard is a content and copywriter with a specialty in international finance. Her work has featured in The Times and The Telegraph, as well as industry magazines and leading personal finance blogs.

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Seyma Mektepli

Reviewer

Seyma Mektepli

Editor-in-chief

Seyma is an experienced content writer and editor-in-chief at Exiap, delivering informative articles on personal finance, and money transfers.

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Last updated

December 17th, 2024