Your A – Z guide of fees when sending money overseas
This is your guide for all the fees you’ll pay when you send money overseas.
International money transfers can be expensive if you don’t know where to look. The two main charges you’re likely to encounter are the commission and a margin inbuilt in the exchange rate. Banks are renowned for taking a bigger cut than specialist foreign exchange companies. These fees and charges outlined below will vary depending on your choice of banking institution or company you use to send money overseas.
We’ve taken the fee schedule from DBS and OCBC, Singapore’s largest banks, so that you can have an indicative idea of the cost of each type of fee. Be sure to have a read of the product disclosure statement before you agree to a deal to send money overseas, this information is readily available on each international payment provider’s website.
|A||Amendment fee||$30||This is a fee for when you want to change the details (on best effort basis) of your international money transfer.|
|B||Branch sending fee||$30||For international payments initiated at a bank branch.|
|C||Cancellation/Stop Payment fee||$35||If you want to cancel your international money transfer or request that you have your money returned to you (on best effort basis). The receiving bank may also charge a fee when you request the transaction is cancelled or your money returned to you.|
|D||Correspondent bank/Third party charges||$30||The recipient may incur a fee from their bank for receiving an international money transfer. You can choose to pay this fee upfront. By doing so, you can guarantee that the party overseas will get the full amount sent.|
|I||Investigation/Tracer fee||$20||When you want to find out why your payment hasn’t been received and get a refund if possible.|
|M||Margin||%||The margin applied to the exchange rate. This is a hidden cost. You can look into the margin by cross-checking the interbank rate against exchange rates published on the international payment service provider’s website.|
|O||Online sending fee||$25||For international money transfers requested from an online banking platform.|
|R||Inward remittance fee||$10||You can be charged a fee for receiving a payment from an overseas beneficiary.|
The commission and the exchange rate margin are the two most common charges when sending money overseas. The good news is you can save on these fees.
Institutions which don’t charge a commission
There are a number of international payment companies which do not charge a commission. For example, TorFX makes money by applying a margin to the exchange rate (but it still ends up being significantly cheaper than using your banking institution). Be sure to compare quotes from providers which do and don’t charge a commission. You may find that paying a higher commission leaves you better off at the end of the day.
Citibank is one banking institution bucking the trend by offering free international money transfers to countries within their global transfer network. There’s no commission charged, Citibank applies a competitive margin to the interbank rate. The only catch is the receiving party must also have a Citibank account. You can make free global transfers to the following countries.
Free Citibank Global Transfer countries
|Bahrain||China||Colombia||Czech Republic||Guam||Hong Kong|
|United Arab Emirates||Vietnam||Australia||Korea||United Kingdom|
Institutions which charge a low margin on the exchange rate
If you want to get the best deal you can, it’s a good idea to compare non-bank international money transfer services. Peer-2-Peer (P2P) international money transfer companies such as Transferwise can give you an exchange rate which is just a touch above the market foreign exchange rate. While it’s difficult to get the market rate if you’re an everyday consumer, these P2P companies can give you access to some of the best foreign exchange rates around.
Pay attention to the fees when you send money overseas. Although some of them can’t be avoided, others can, and there’s no reason why you shouldn’t shop around to find yourself the best deal when sending money overseas.
Still need help?