on 18-08-2019 06:23 AM
I recently transferred $5000 AUD to a NZ account and noticed the exchange amount was less than expected.
I am aware Bankwest has charged a $15 international transfer fee (which I was advised I wouldn’t be charged due to the $395 annual fee paid with my mortgage acc). I am uncertain where the exchange rate fits in here as I would have expected an approximate $200 difference in exchange from AUD to NZD.
Cab you please advise for future reference as this was not what was explained and advised,
on 18-08-2019 11:28 AM
Hi there @podgiepadger , thanks for getting in touch.
The transfer fee is a separate service fee - this is not in any way related to your Home Loan, apologies for any confusion.
While the exchange rate is definitely a large part of the amount sent and received, it's important to note that in some cases, it may be necessary for the banks involved in an international transfer to utilise the services of a 'correspondent' bank to assist in the transfer. As banks do not hold offices in every country, it is necessary to establish reciprocal agreements with a representative bank that may assist in getting the funds transferred successfully to their destination. If a correspondent bank is needed for assistance in the transfer, they are entitled to charge a fee for their services. Other bank charges and fees are generally unknown and therefore may not be accounted for in the fees quoted at the time the transfer was initiated. This means that a recipient may receive a lesser amount in their account than what was originally sent.
More information is available via this link, I hope this helps.
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