on 12-12-2017 07:47 PM
I was recently slugged with an 8% conversion fee ($1000 AUD sent, $916 AUD received!) when sending AUD to a Japanese domiciled AUD account. This after paying $20 Swift processing fee, so in total I lost 10%!
I was very disappointed that this happened as its now causing me a heap of problems with getting that deducted 10% across to the Japanese AUD account!
Can someone please explain how this could have happened?? Will it happen every time? I really don't want to use a different bank to make these transfers which I was intended to do regularly.
Thanks in advance.
on 13-12-2017 11:08 AM
Hi @AC2089, thanks for your query.
In some cases it may be necessary for the banks involved to utilise the services of a 'correspondent' bank to assist in an international 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 unknown to us and therefore not accounted for in the fees quoted prior to the transfer being processed. This could mean that you may receive a lesser amount in your account than what the sender had originally sent. Other bank fees and agent fees are unknown to us, and therefore out of our control.
You can view more information on international transfers here - please let me know if you require any further information.