Bank transfer review 2025: charges, processing time, and hidden fees

What is a bank transfer?

Bank transfers, including those done via the Faster Payment System (FPS) and electronic Direct Debit Authorisation (eDDA), refers to the movement of money from one bank account to another, either within the same financial institution or between different banks both locally or internationally.

What is a bank remittance?

Bank remittances refer to the money transfer made between two different accounts electronically for various purposes such as payments, investments, or personal transfers. In Hong Kong, the majority of banks offer international remittance services to overseas bank accounts. 

How do bank transfers and bank remittances work?

Here is a general overview of how bank transfers work:

1. Initiation: To begin, you have to make sure you have sufficient funds in your local bank account. The sender then initiates a bank transfer or bank remittance by providing the local bank with the payment instructions including the recipient's account details (including the account number, bank and branch code for Hong Kong local transfers, or SWIFT/BIC code for international transfers) and the transfer amount.

2. Verification and authorisation: The sender's bank verifies the transaction details and authorises the transfer. This may involve security checks such as one-time codes or mobile app push notifications to ensure the legitimacy of the transfer.

3. Interbank communication and settlement: The sender's bank communicates with the recipient bank through secure networks like the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network to facilitate the transfer. The recipient bank then receives the funds and credits the recipient's account with the transferred amount. Settlement times can vary depending on factors like the type of transfer (e.g. domestic or international) and the number of banks involved. In general, most bank transfers are completed in 3-5 business days.

4. Notification: Both the sender and recipient typically receive notifications confirming the transfer, either through online banking platforms, email, or SMS.

5. Completion: Once the funds are credited to the recipient's account, the transfer is considered complete. The recipient can then access and utilise the transferred funds as needed.

Processing time for bank transfer

Some common methods for bank transfers include telegraphic transfers (TT), demand drafts (DD), and mail transfers. Among the three, telegraphic transfer is the most widely used option. Both local and overseas banks utilise the SWIFT network to exchange telegrams and process instructions for telegraphic transfers. 

The SWIFT network operates in more than 200 countries and regions globally. Upon registration as a SWIFT member, each bank and branch is assigned with a unique SWIFT Code (also known as the Bank Identifier Code, BIC). To make a transfer, simply enter the recipient bank's SWIFT Code and account details, and the funds will usually be credited in 1 to 5 days after sending the instructions. 

The processing time for demand draft and mail transfers are less predictable due to the nature of the transfers. These two options require sending remittance instructions via physical mail, so factors such as distances and flight schedules would hinder the transit significantly. Most demand draft and mail transfers take at least three business days and up to 2 weeks.

Hence, telegraphic transfers remain the primary method for international money transfers with its security, reliability, and swift processing time.

What are the advantages of bank transfer?

Bank transfers provide a secure, reliable, and cost-effective way to send and receive payments. They offer lower fees, enhanced security, and better transparency, making them a preferred choice for businesses and individuals.

Security and reliability, and convenience

Traditional banks are renowned for their solid reputation. Bank transfers provide a high level of security with strong encryption and authentication measures, reducing the risk of unauthorised access and chargebacks as compared to credit card payments. Bank transfers also allow businesses and customers to complete payments online, via mobile banking, or at the branches.

Transparency and traceability

Some banks offer additional services so customers can track the status of the bank transfers, allowing businesses to monitor incoming and outgoing payments in real time. This allows businesses to identify delays, verify successful payments, and improve cash flow management. Bank transfers also leave a clear audit trail, making financial reporting and tax compliance simpler.

Reduced transaction cost

Credit card processors often charge businesses a percentage of each transaction, which can accumulate into significant costs over time. By using bank transfers, businesses can reduce these expenses and maximise their profits. Certain large international banks also have branches spread across various countries and regions. When processing cross-border transfers, these banks can process transactions  within their internal network, reducing administrative costs and processing delays. 

Enabling eCommerce brands to accept bank transfers as an alternative to card payments

Accepting bank transfers as a payment method allows businesses to offer consumers another secure and reliable way to complete transactions.  Some eCommerce owners prefer to accept payments directly from their bank accounts over credit cards or digital wallets for large payments. By integrating bank transfers, businesses can reduce chargebacks and frauds, making it a preferred choice for businesses handling high-value transactions.

Limitations of bank transfers

While bank transfers are secure and reliable, they come with certain limitations that can affect businesses and individuals. Factors such as transfer limits, delays, and exchange rates may create challenges, especially for large or international transactions.

Limitation on transfer amount

Many banks impose daily or per-transaction limits, depending on ‌account tiers, transferred currency, bank policies, and local laws. These limits can restrict businesses from making large payments, requiring them to split payments over multiple days.  This can be inconvenient, especially for businesses dealing with high-value transactions or urgent supplier payments..For instance, HSBC sets a maximum daily transfer amount of HK$400,000 to unregistered payees*. If the transfer exceeds the designated limit, remitters may be required to provide additional verification, such as transaction contracts and invoices as supporting documents.

Foreign exchange risks

International bank transfers, facilitated through services like SWIFT, are subject to exchange rate fluctuations. SWIFT enables secure and standardised international wire transfers but does not shield users from currency rate variations. The exchange rate at the time of transfer significantly influences the final amount received by the recipient, potentially leading to unexpected costs and affecting transaction value.

Cut-off times

Traditional banks typically process remittance applications only during office hours. Due to time differences and holidays between local and overseas banks, there might be delays until the next business day. It is important for businesses to plan transactions in advance to avoid payment disruptions and delays.

Generally, online banking remittances have later cut-off times compared to branch-based remittances.The table below* outlines the cut-off times for remitting Canadian dollars (CAD), Euros (EUR), US dollars (USD), and British pounds (GBP) at selected banks. The cut-off times are based on Mondays to Fridays unless specified.

Bank transfer delay

Bank transfers, especially international transfers, may encounter processing delays. While domestic transfers are typically prompt, cross-border transactions can take several business days to reach the recipient. International transfers initiated at the end of the week, for instance, may experience extended processing times due to weekend closures. Missing or incomplete paperwork can further prolong processing times, making it problematic for businesses needing timely transactions for payments.

Refunds and recalls

Unlike credit card payments, bank transfers are difficult to reverse once initiated. Resolving payment errors or disputes and recalling funds sent in error can be challenging and time-consuming. Banks usually require formal requests for payment recalls, and there is no guarantee that the recipient will return the funds.  This poses a risk for businesses, especially when dealing with new suppliers or accounts.

Comparison of bank charges for bank transfers

When corporate clients initiate overseas money transfers via a bank, they are typically charged a fee* ranging from HK$120 to HK$200 per transaction for online remittances. The charges can vary significantly across different banks, ranging from HK$100 to HK$350. Conversely, the standard fee for receiving remittances into an account is generally HK$65 per transaction, with certain banks offering fee waivers.

In addition to the aforementioned bank charges, banks may also charge different fees for other remittance-related items, including:

• Intermediary bank charges

• Handling charges for leaving a message to the recipient during remittance

• Additional charges for remittance instructions in Chinese

• Fees for status inquiry of the remittance

• Fees for confirming the remittance with the beneficiary's bank

• Fees for making changes, cancellations, and refunds

Moreover, businesses should be mindful of hidden discrepancies in exchange rates. Banks typically set their own currency exchange rates for remittances, which are often higher than the market rates. This is why, even if a bank waives the remittance handling fee, it can still generate profits from the exchange differentials, ultimately resulting in higher exchange costs for customers.

Why do traditional banks charge additional fees? 

Traditional banks charge additional fees for various reasons, including expenses for operational costs, regulatory compliance, service maintenance, and more. These fees help banks manage transaction processing and customer support. Common charges include account maintenance fees, overdraft fees, wire transfer fees, and foreign exchange fees, all of which contribute to the banks’ revenue. Additionally, traditional banks invest in digital banking services, security measures, and infrastructure, and branch operations, all of which are funded through continuous fees. While these charges can be frustrating, they  help traditional banks sustain operations and remain profitable.

What are the options for business transfers?

Apart from traditional banks and virtual banks, Airwallex, the all-in-one financial platform also offers fast and cost-effective international transfer services. 

How can you save on money transfers with Airwallex?

Airwallex's global transfer services offer competitive exchange rates and transparent fee structures, making it a preferred option for those looking to save on money transfers.

Transparent fee structures

Unlike some traditional providers that may have hidden fees or unclear pricing models, Airwallex does not impose account opening fees, monthly charges, or hidden fees. . By clearly outlining all applicable fees upfront, businesses can have a clear understanding of the costs involved in their transfers, without any surprises or hidden charges.

Swift global transfer service

Airwallex's efficiency and speed in processing transfers can also lead to business savings. Serving 150,000+ businesses worldwide, Airwallex’s secure and reliable transfer services allow businesses to transfer over 60 trade currencies to 150+ countries and regions, completed in as little as one business day.

Cost-effective international transfers

Airwallex FX & Transfers offers a cost-effective alternative to traditional bank transfers by leveraging local payment networks instead of the Swift system. This approach eliminates multiple layers of fees typically charged by remitting banks, intermediary banks, and recipient banks, allowing businesses to save on every international transfer. With Airwallex’s multi-currency Business Account, businesses can make transfers to over 150 countries with rates as low as 0.2% above the interbank rates.  With Airwallex’s Global Accounts, businesses can also receive payments directly leveraging local bank details.

Sign up now to streamline payments to suppliers and employees around the world.

Sources:

Information on banks was retrieved as of January 2025, and updated as of March 2025, from the sources below. Information provided is for reference only. Please refer to the official website of banks for the most up-to-date details

1. https://www.hsbc.com.hk/ways-to-bank/branch/express-banking/

2. https://www.bochk.com/en/crossborder/remittance/faq.html

3. https://www.business.hsbc.com.hk/zh-hk/regulations/services-cut-off-time

4. https://www.hangseng.com/content/dam/hase/en_hk/personal/banking-services/pdf/ortt_timetable.pdf

5. https://www.sc.com/hk/bank-with-us/remittance/

6. https://www.bochk.com/en/crossborder/remittance/charges.html

7. https://www.business.hsbc.com.hk/hk/regulations/commercial-tariffs

8. https://av.sc.com/hk/content/docs/hk-service-charges-en.pdf

9. https://www.citibank.com.hk/english/citibusiness/about-us/?lid=HKZHCBLCZLNTLABOUTUSCZLN

10. https://www.hangseng.com/en-hk/business/your-business-essentials/transfer-outward-remittance-faq/

Disclaimer: The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed every 6 months. If you would like to request an update, feel free to contact us at [email protected].