What you pay depends on the payment method, the currency, and who handles the conversion
International business payments cost different amounts depending on whether you use a bank wire, a payment platform, a money transfer service, or a business account designed for cross-border work. A wire through your bank might cost $15 to $50 per transaction but include a hidden currency markup of 1 to 3 percent. A platform like Wise or PayPal might charge 1 to 3 percent flat but no per-transaction fee. A money transfer service like OFX or Remitly might charge 1 to 2 percent plus a small flat fee. The real cost is not just what you see on the receipt — it is the exchange rate markup, the transaction fee, and sometimes a receiving fee on the other end.
The size of your payment matters. A $500 transfer might cost you $10 to $25 in fees and markup, which is 2 to 5 percent of the total. A $50,000 transfer might cost $300 to $1,000, which is 0.6 to 2 percent — the percentage drops because the fixed costs spread across a larger amount. Some services offer volume discounts or lower rates for recurring payments, so what you pay on your first transfer is not what you will pay on your tenth.
Key Takeaways
- Bank wires charge $15 to $50 per transaction but often hide a 1 to 3 percent currency markup that you do not see until the money arrives.
- Payment platforms like Wise, Remitly, and OFX typically charge 1 to 3 percent total, with no hidden markup, and show you the exact rate before you confirm.
- The percentage you pay usually drops as the transfer size increases, so a $50,000 payment costs less as a percentage than a $500 one.
- Receiving fees on the destination end can add another $5 to $30, depending on the country and the receiving bank's policies.
- Recurring payments and high-volume transfers often may have access to for better rates, so asking about volume pricing is worth doing before you commit to a service.
Bank wires: transparent fees, hidden exchange rates
A bank wire is the oldest and most familiar method for international business payments. Your bank charges you an outgoing wire fee, usually $15 to $50, and the receiving bank may charge an incoming fee of $10 to $30. You see both of these fees clearly on your receipt. What you do not see is the exchange rate markup — your bank buys the foreign currency at the wholesale rate, then sells it to you at a rate that includes their profit, typically 1 to 3 percent above the real market rate.
On a $10,000 wire to Europe, your bank might charge $35 in fees plus a 2 percent currency markup ($200). The total cost is $235, or 2.35 percent. The wire usually arrives in one to three business days, depending on the destination country and whether it is a weekend. If the receiving bank is in a country with slower payment infrastructure, add another day or two.
Banks do not always disclose the markup upfront. You can ask your bank for the mid-market rate (the real exchange rate at that moment) and compare it to the rate they quote you. If they quote you a rate that is 2 percent worse than the mid-market rate, that is your markup. Some banks offer better rates for large transfers or for customers with high account balances, so it is worth asking.
Payment platforms: lower fees, real-time rates, no surprises
Platforms like Wise, OFX, Remitly, and Payoneer show you the exact exchange rate and the exact fee before you send the money. Wise charges 0.6 to 1.5 percent depending on the currency pair and the transfer size. OFX charges 1 to 2 percent. Remitly charges 1 to 2.5 percent. PayPal charges 2 to 3 percent for international transfers. None of these include hidden markups — what you see is what you pay.
The trade-off is speed. Wise and OFX usually deliver money in one to two business days for most countries. Remitly can take one to five days depending on the destination. PayPal can take three to five days. If you need money to arrive the same day or next morning, a bank wire is still faster in most cases, though some platforms now offer expedited delivery for an extra fee.
Payment platforms also tend to be cheaper for smaller transfers. A $500 payment through Wise might cost $7 to $8 (1.4 to 1.6 percent). The same payment through a bank wire would cost $35 to $50 in fees alone, plus the currency markup. For transfers under $5,000, a platform usually beats a bank wire on total cost.
Money transfer services: competitive rates for regular payments
Services like Western Union, MoneyGram, and smaller specialists like Wise's competitors (Remitly, OFX, Payoneer) sit between banks and platforms. They charge a flat fee plus a percentage, or a percentage alone. Western Union charges 1 to 8 percent depending on the destination and the amount. MoneyGram charges 1 to 5 percent. Smaller specialists like OFX charge 1 to 2 percent with no flat fee.
Money transfer services are useful if you send to countries where banks are slow or unreliable, or if you need cash pickup rather than a bank deposit. They are less useful for regular business payments between established accounts, where a platform or bank wire is usually faster and cheaper.
Some money transfer services offer better rates if you set up recurring payments or if you commit to a certain volume. If you send $5,000 or more per month to the same country, asking about volume pricing can cut your rate by 0.5 to 1 percent.
Receiving fees and what happens on the other end
The person or business receiving your payment may also pay a fee. A bank wire arriving at a foreign bank often triggers an incoming fee of $10 to $30, depending on the country and the bank. The receiving bank deducts this from the amount that arrives, so if you send $10,000, the recipient might receive $9,985 if the receiving fee is $15.
Payment platforms usually do not charge the recipient a fee to receive money, but some countries have restrictions. In some parts of Africa, Asia, and Latin America, the recipient may need to pay a small fee to withdraw the money from the platform to their local bank account. This is usually $1 to $5 but can be higher in countries with limited banking infrastructure.
Always ask the recipient what fees they will pay on their end before you send. If they will pay $20 to receive your wire, you might choose a platform instead to save them that cost. Some businesses negotiate with their banks to waive incoming fees for regular international transfers, so it is worth asking.
Currency conversion timing and locked-in rates
The exchange rate changes constantly. If you send a wire on Monday, the bank converts the money at Monday's rate. If you use a platform that lets you lock in a rate for 24 or 48 hours, you can send the money later and still get that rate. This matters if the currency is volatile or if you are waiting for a client payment to clear before you send the money out.
Wise lets you lock in a rate for up to two weeks on some currency pairs. OFX lets you lock in a rate for up to 48 hours. PayPal does not let you lock in a rate — you get whatever rate is active when you send. If the currency moves 2 percent in your favor between when you quote the rate and when you send, you save money. If it moves 2 percent against you, you lose money.
For business payments where you know the exact amount and timing, locking in a rate removes the guessing. For payments where the amount or timing is uncertain, a platform with a short lock-in window (24 to 48 hours) is usually better than a bank wire, where you have no control over the timing.
Comparing total cost across methods for a real example
Imagine you are sending $10,000 from the United States to the United Kingdom. Here is what each method costs:
| Method | Outgoing Fee | Currency Markup | Receiving Fee | Total Cost | Total % | Arrival Time |
|---|---|---|---|---|---|---|
| Bank Wire | $35 | $200 (2%) | $15 | $250 | 2.5% | 1–3 days |
| Wise | $0 | $100 (1%) | $0 | $100 | 1% | 1–2 days |
| OFX | $0 | $150 (1.5%) | $0 | $150 | 1.5% | 1–2 days |
| PayPal | $0 | $300 (3%) | $0 | $300 | 3% | 3–5 days |
On this $10,000 transfer, Wise saves you $150 compared to a bank wire and $200 compared to PayPal. The difference is smaller on larger transfers (a $100,000 wire might cost only $500 to $1,000 total, which is 0.5 to 1 percent), but for business payments under $50,000, a platform usually wins on cost and speed.
When to use each method
Use a bank wire if you need the money to arrive the same day or next morning, or if you are sending to a country where platforms do not operate. Some countries in the Middle East, Africa, and parts of Asia have limited platform coverage, and a bank wire may be your only option.
Use a payment platform (Wise, OFX, Remitly) for routine business payments under $50,000 where you can wait one to two business days. The cost is lower, the rate is transparent, and you can lock in the rate if you need to.
Use a money transfer service if you are sending to a country with unreliable banking infrastructure, or if the recipient needs cash pickup rather than a bank deposit. Otherwise, a platform is usually cheaper and faster.
Use PayPal only if the recipient already has a PayPal account and you are sending a small amount (under $1,000). For larger payments, the 2 to 3 percent fee is expensive compared to platforms that charge 1 percent or less.
Frequently Asked Questions
Can I negotiate the exchange rate with my bank?
Yes, especially for large transfers ($50,000 or more) or if you are a regular customer. Ask your bank for the mid-market rate and the rate they are quoting you, then ask if they can improve it. Some banks will shave 0.5 to 1 percent off the markup for customers with high balances or frequent transfers.
What is the difference between the mid-market rate and the rate I actually get?
The mid-market rate is the real exchange rate at that moment, published by financial data services. Banks and platforms buy and sell currency at rates above and below the mid-market rate. The difference is their profit. A bank might quote you a rate that is 2 percent worse than mid-market. A platform might quote you a rate that is 0.5 to 1 percent worse. The difference is your cost.
Do I have to pay a fee if the recipient refuses the payment?
It depends on why they refused it. If the payment is rejected because the account number is wrong or the account is closed, most banks and platforms will refund the fee and return the money to you. If you cancel the payment before it is sent, some services charge a cancellation fee of $10 to $25. Read the terms before you send.
What happens if the exchange rate moves between when I send the money and when it arrives?
The rate is locked in at the moment you send the payment, not when it arrives. If you send a wire on Monday and it arrives on Wednesday, the recipient gets the amount based on Monday's rate. This is why locking in a rate with a platform can be useful if the currency is volatile.
Are there any hidden fees I should know about?
The main hidden cost is the currency markup. Always ask your bank or platform for the mid-market rate and compare it to the rate they quote you. The difference is the markup. Some platforms also charge a small fee to receive money in certain countries, but they disclose this before you send. Read the full fee schedule before you commit.