Sending money internationally? Whether it's for a friend studying abroad, a business transaction, or that dream vacation overseas, getting the best exchange rate and avoiding hidden fees is important.

In this guide, we'll uncover the fees traditional banks typically charge, explore how much these transfers can cost you, and introduce alternative options that can save you money on your next international transaction.

Unlike banks, OhentPay offers a transparent and affordable solution. You'll see exactly what you pay upfront, with competitive exchange rates and no surprise charges.

Read also: 5 easy tips to save money on international transfers.

How Much Do Banks Charge For International Money Transfers?

The question of "How much do banks charge for international transfers?" – the answer depends on several factors. Unlike a flat fee you might pay for domestic transactions, international transfers involve different charges that can vary.

The costs can vary from country to country because bank fees, regulations, and even currency exchange rates can differ depending on the sending and receiving countries. It can also vary from bank to bank, based on different bank structures. Here's the breakdown of the factors that contribute to the total cost banks charge to send money abroad:

Bank Fees:

 Although banks typically charge a percentage of the amount you're transferring, which can vary from 1% to 4%, depending on your bank, the amount you're sending, and the destination country. Here's a breakdown of bank fees on international transactions:

• Outgoing Fees: This is the fee charged by your bank for initiating the transfer.
• Incoming Fees: The recipient's bank might also charge a fee to receive the funds.
• Initiation fees: Phone or in-branch transfers might be more expensive than online transfers.
• Tracer fees: Tracking your transfer progress may incur a small fee.

Foreign Exchange Rates:

Banks don't use the interbank exchange rate (the best rate). They apply a currency exchange markup, resulting in a less favourable rate for you. This markup can vary but can be significant.

SWIFT Fees (optional)

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the network that facilitates most international transfers.  If you're using a SWIFT transfer, there might be additional fees:

• Transfer Fee: Your bank might charge you for using the SWIFT network to send the money.
• Recipient Fee: The recipient's bank might also charge a fee for receiving the SWIFT transfer.
• Tracing Fee: Similar to standard tracer fees, tracking a SWIFT transfer might incur a small additional cost.

Read also: Everything You Need to Know About IBAN.

The Impact on Larger MoneyTransfers

It's important to remember that these seemingly small percentages can quickly add up, especially for larger transfers. Let's say you're sending $5,000 internationally. A 3% outgoing fee from your bank translates to $150. If the recipient's bank also charges a $20 fee, you've already lost $170 before your money even arrives.

How to Beat the High Bank Charges for International Money Transfers

It has been established that traditional banks charge quite a lot for international money transfers, but there are still easy ways you can beat the high charges.

Here is why OhentPay and similar services can be a better choice:

• Lower Fees: OhentPay offers competitive fees compared to banks. We're transparent, so you see the exact fees upfront.
• Transparent Pricing: No hidden charges or surprises. You know exactly what you're paying for.
• Competitive Exchange Rates: OhentPay strives to offer rates closer to the interbank rate, maximizing your recipient's amount.

OhentPay charges a service fee of £1.99 for personal accounts or its equivalent in other currencies. You can send up to £5,000 per transaction but the maximum amount you can send at once using your card for payment is £1,500 via the OhentPay mobile app.

Download the OhentPay app on your mobile phone, here.

Wrapping Up

If you’d like to send money anywhere in the world and prefer fast transfers at great rates, we recommend the OhentPay money transfer service. Create an account to get started here.

Share this post with a friend you think might need this.