How to transfer money to an international bank account

Making an international money transfer is a quintessential part of business operations. However, with multiple options to do this, it’s not easy to understand what’s best for your business and get transparency on the fees involved, speed and features.

This is especially for Australian businesses. The World Bank found that the cost of sending money overseas from Australia is about 11% higher than the G20 average. This additional 11% in cost can easily eat into profit margins and can quickly affect your business’ bottom line.

We’ll step you through the options your business has to make a fast, cost-effective and on-time international money transfer.

Top ways to transfer money to a foreign bank account

Domestic Business Accounts

Most local business bank accounts are able to make international payments. These international transfers use the global SWIFT payment network, which was created in the 1970s and has grown to include 11,000 financial institutions since its inception. There is usually a minimum transfer fee of AUD10 and the payment can take between 2 to 5 days depending on your destination country.

In addition to this transfer fee, you will need to convert your local funds into the desired currency prior to sending. Contrary to popular belief, the rate that you see on Google is not the same exchange rate that domestic banks usually charge. They often charge an additional 3 - 5% above the interbank exchange rate, which is not always transparent when you’re booking a payment. 

It’s important to understand how these fees are charged as they will impact the final amount that the recipient will receive on their end.

P2P Remittance Services

Peer-to-peer (P2P) remittance has been popularised by providers like Western Union given their significantly lower exchange rates compared to domestic banks. P2P providers make this possible by matching buyers and sellers of foreign currency to effectively transfer funds.

As P2P providers rely on having matched funds in your country and currency pair of choice, your transfers can be impacted by the P2P market resulting in a different exchange rate or delays in your transfer.

Why you should choose an alternative international payment provider

With an Airwallex business account, we are transforming the way businesses move money globally by giving you:

• Foreign exchange rates up to 90% better than major banks*, with no minimum amounts

• Access to our global network of bank partners so your transfers arrive fast and in-full

• Support on all your international payment needs from your dedicated account manager

• Complete self-service with our digital platform, no paperwork or phone calls needed

Transfer money to a foreign bank account in a few simple steps

Your business can transfer money to a foreign currency account with Airwallex to over 130 countries and in 18 currencies. Here’s how it works:

1. Create an Airwallex account and verify your business, with no branch visits needed

2. Transfer money into your Airwallex wallet to fund your transfer

3. Enter in your recipient’s banking details and create them as a contact

4. Check the real-time FX rate and fees to know precisely how much money it will cost

5. Confirm your transfer and track its progress on your desktop or mobile 

This process usually takes anywhere from 1-5 business days, depending upon your destination and the currency pair.

Are you looking for a fast, secure and cost-effective way to pay your suppliers? Learn more with our Ultimate Guide to Paying Overseas Suppliers.

Information needed for an international money transfer 

Sending money internationally can be confusing due to so many different names for all of the banking codes used throughout the world. That’s why we’ve made it simple with ‘Contacts’. Simply choose the country you are paying to and we guide you through exactly what information you need to provide so your transfer goes smoothly. Your recipient details are saved as a contact so all future transfers can happen in a few clicks. 

In a nutshell, the details you need to collect of your recipient are:

• Recipient details: Name, address, email

• Recipient bank details: Routing number, bank name, account number & BSB for Australian recipients

• Additional transfer information: Examples include proof of payment or order information for transfers when making transfers to China

Whether you need to submit SWIFT and IBAN codes or NCC and BSC numbers, you can find information specific to your country in our Payout Guide. Our Australian support team can also walk you through it all and address your questions.

Streamline and secure your international transfers

When you need to make recurring international transfers, Airwallex is built-in with powerful features to help your business manage this seamlessly.

Use batch payments to send money to multiple receipts, each with a specified amount. This saves hours from creating multiple, individual payments for each contact. Batch payments are especially useful for large, recurring international transfers such as paying your overseas staff.

Free up your time from making frequent international transfers by giving your accountant or team access with the right permissions. You can stay in control and secure your funds by having one team member draft the transfer, and another to approve it.

Eliminate manual reconciliation of international transfers for your bookkeeping by integrating Airwallex directly to Xero. Sync your multi-currency transfers to Xero for visibility of your global cash flow in a single place.

Receive transfers from a foreign bank account

On the flip side, receiving international transfers from an overseas customer, wholesaler or supplier can also be slow and expensive. With Airwallex’s Global Accounts, you can set up local bank details for the following regions in minute:

• USD Business Account

• Canadian Business Account

• Euro Business Account

• Swiss Business Account

• Chinese Business Account

• Hong Kong Business Account

• Singapore Business Account

• UK GBP Business Account

• Japanese Business Account

Share these local bank details with your sender to receive international transfers faster, with no transfer fees when transfers are effectively domestic transfers.

For example, your customer based in the United States can make an international transfer to you with their local bank, in their local USD currency. The transfer can use the local Automated Clear House (ACH) method with $0 transfer fees, and funds arriving as fast as 1 business day. Book a demo with an Airwallex product specialist to find out how Global Accounts can help your business scale internationally.

Related articles about banking:

• Compare the Best Business Bank Accounts for Australian Businesses

• How to Open a Business Bank Account

• Do I Need a Business Bank Account

• Payment Methods Guide for Australia

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*The above estimations are calculated based on published rates for the Big Four banks and what is included in their PDS documents. You can find more information on how we calculated our savings here. Our products and services in Australia are provided by Airwallex Pty Ltd ABN 37 609 653 312 who holds AFSL 487221. Any information provided is for general information purposes only and does not take into account your objectives, financial situation or needs. You should consider the appropriateness of the information in light of your own objectives, financial situation or needs. Please read and consider the Product Disclosure Statement available on our website before using our service. The actual fee charged by the Big Four Banks on international card transactions may vary depending on your card. Airwallex does not charge transaction fees on card payments; however, other fees and charges may apply, please see our terms and conditions for more information.