A detailed study of international bank transfer costs by MoneyMover and Accourt - a consultancy service to the payments industry - has revealed customers have no access to the data used to determine the actual exchange rates delivered when making international payments.
i.e. there is no transparency on the exchange rate they offer and the costs are therefore ultimately hidden.
“In general terms UK banks lack transparency on currency exchange rates and margins. Each bank generates its own FX rate for the day and it is provided by an internal system which customers do not have access to. In some instances the bank’s exchange rate is not even provided before confirming the payment so it is unknown to the customer how much is going to be charged for the transaction,” noted Accourt.
Accourt conducted research into the top six UK banks with the aim of extracting the true cost of making international payments by adding the fee to the amount they earned from the profit made on the exchange rate they received and the exchange rate they offered. The results were published in Accourt's second annual Currency Risk Outlook 2015 report.
The above is summary of the costs of one set of findings on a transfer of £50000, studies were also conducted on transfer amounts for £10K and £100K.
Accourt advises customers to explore alternative options that may provide more straight-forward and cost-effective options for transferring money internationally.
The team at RationalFX - an independent international payments provider - guarantee to beat your bank when it comes to cost, all you need to do is request a quote from a payments specialist who is plugged into the global foreign exchange market.
They also don't charge a basic fee.
"Making or receiving an international payment? Our customers can save thousands of pounds by using our service rather than a bank’s. RationalFX is the easy way for businesses to transfer foreign currency online 24/7 and private customers to manage payments overseas, such as for a second home or education fees," says Paresh Davdra, CEO of RationalFX.
RationalFX say you are able to save as much as 10% on money transfers compared to banks or money-sending bureaux. "As a specialist currency provider, we offer the best possible rate and won’t be beaten! The rate you book is the rate you’ll get when you make your transaction," says Davdra.
RationalFX is authorised by the FCA (507958) and HMRC as a Money Services Business (12206957). The company is a SWIFT payments member (RFXLGB21).