You send 1,000 EUR abroad, the bank takes a small fee, and the recipient ends up with less than you expected.
The reason can be an unfavourable exchange rate, a correspondent bank fee, or the wrong cost-split option. So how much does an international transfer actually cost? Here's what to check before you confirm, so you know the full price upfront.
What determines the cost of an international transfer?
Settlement system is the biggest factor. A payment in EUR to a country within the Single Euro Payments Area (SEPA) can be sent as a SEPA transfer. For USD, GBP, or another currency, the bank usually sends it as a SWIFT transfer.
A few other things matter too:
- the recipient's country and bank;
- the transfer amount;
- the currency of the sender's account;
- the transfer currency;
- how the fees are split;
- the exchange rate applied;
- whether the transfer is standard or urgent;
- the channel used to place the order, online or in branch.
A bank can charge a different fee for a transfer set up in online banking than for one placed in branch.
Before you confirm anything, check whether you're transferring funds from an account held in the same currency. If it isn't, currency conversion gets added to the cost of the transfer, and how much that adds depends on the rate your bank applies (more on that further down).
What international transfer fees can you expect?
International transfer fees don't always stop at the commission listed in your bank's price list. On a SWIFT transfer, the funds can pass through a correspondent bank, which deducts part of the amount being sent.
The total cost of a transfer can include:
- the fee for placing the transfer;
- a surcharge for urgent processing;
- the cost of currency conversion;
- correspondent bank fees;
- a fee charged by the recipient's bank;
- the cost of correcting or cancelling the order;
- a fee for returning the funds.
With a SWIFT transfer, you need to choose how the costs are split. Under SHA, the sender covers their own bank's costs and the recipient covers the rest. Under OUR, the sender agrees to cover every cost of the transfer. Under BEN, all the fees fall on the recipient and get deducted from the amount sent.
If you need to send an exact amount, say to pay a foreign invoice, tuition, or an instalment, check whether the OUR option guarantees the full value is credited. Your bank should still be able to explain how the settlement works and whether extra costs can appear along the way.
What does a SWIFT or SEPA transfer typically cost?
Prices vary widely, because the cost of an international transfer depends on the bank, the country, and the settlement system chosen.
The SEPA transfer cost is usually lower than the SWIFT one. A SEPA payment has to be made in EUR between accounts held by institutions within the SEPA area, which covers the EU plus other countries and territories, including Iceland, Norway, Switzerland, and the United Kingdom.
A standard SEPA transfer set up online is often free or low-cost at most European banks. The fee can be higher if you place the order in branch or choose the urgent option. On top of that, you still need to add the cost of converting your home currency into EUR if you're sending from an account that isn't already in euros.
SWIFT transfer fees are usually higher than SEPA ones. The bank's own commission alone can run from roughly 15 to 50 EUR, and for larger amounts it's sometimes charged as a percentage, say 0.2 to 0.5% of the transfer value. Correspondent bank fees can add more on top, often somewhere between 10 and 40 USD, and the recipient's bank can deduct a further fee on arrival. Add it all up and a transfer to the United States, for example, can often land somewhere between 30 and 100 EUR in total, sometimes more, depending on the cost-split option chosen, the exchange rate, and how many institutions handled the settlement.
Always check the final cost in your own bank's fee table, since the difference between providers can be significant.
How does the exchange rate affect the cost of an international transfer?
Banks apply their own buy or sell rate whenever your account currency differs from the transfer currency, and that spread can matter more than the fee itself.
Say you want to send 2,000 USD, but your account is in a different currency. One bank charges a 5 EUR fee but sells dollars at a weaker rate. Another charges 20 EUR but applies a rate closer to the market. The first offer looks cheaper, but once the exchange rate is factored in, it can end up costing more overall.
So don't just ask about the fee when weighing the cost of an international transfer. Check:
- how much will actually be deducted from your account;
- how much the recipient will receive;
- which rate the bank applies;
- whether the conversion happens only once;
- whether any fees get deducted further along the way.
If you regularly make payments in EUR, holding a EUR account can cut down on how often you convert currency. You'll still need to buy the currency at some point, so it's worth comparing your bank's rate against an online currency exchange and other providers' apps before you commit.
How do you reduce the cost of an international transfer?
First, check whether the payment can be sent as a SEPA transfer. If the recipient holds an account in a country covered by the scheme and accepts EUR, it can turn out cheaper than SWIFT.
It's worth sending money directly in the recipient's account currency rather than your own. Sending your home currency into a foreign EUR account can trigger a conversion at the receiving bank's own rate, and you won't always know those terms in advance.
You can cut the cost of a transfer abroad by:
- placing the order online instead of at a branch;
- choosing standard processing when speed isn't critical;
- comparing the fee together with the exchange rate, not separately;
- avoiding a double conversion;
- using a currency account for transfers you make regularly;
- double-checking the details before you confirm;
- choosing the right cost-split option, whether SHA, OUR, or BEN.
What else should you keep in mind when sending money abroad?
A mistake in the account number, the SWIFT code, or the recipient's details can lead to a returned payment, a delay, and an extra fee. Sending money urgently usually costs more too, so it's worth confirming the timeline actually needs it. Before you send the money, check the IBAN, the bank's name, and the account holder's details. In countries that don't use IBAN, you may need a local account number and an additional routing code instead.
How you place the order matters too. When you use an app that combines a multi-currency account, currency exchange, and international transfers, it's easier to check the rate, the fee, and the currency before you confirm. That's how ZEN.COM works: it handles both SEPA and SWIFT transfers and lets you manage funds in multiple currencies from one place.
Another advantage is being able to hold currency you've already bought in a separate balance and use it later for another transfer or a card payment. That way you don't need to convert funds every time or move them between different services.
How long does an international transfer take?
Processing time depends on the settlement system, when the order was placed, any correspondent banks involved, and public holidays in both countries.
A standard SEPA transfer usually reaches the recipient's account the next business day. If the order was placed after the bank's cut-off time, processing may not start until the following day. Instant SEPA transfers also exist, though not every bank or plan offers them.
A SWIFT transfer can take anywhere from one to a few business days. It takes longer when:
- a correspondent bank is involved;
- the details need extra verification;
- the order was placed just before a weekend;
- a public holiday falls in the recipient's country;
- the bank needs more information about the purpose of the payment.
A confirmation that the order has been processed doesn't mean the money has already landed in the foreign account. The funds can still be moving through the payment system or sitting with the recipient's bank.
How do you choose the best method to send money abroad?
Start by settling on the country, currency, amount, and deadline. Then compare a standard bank transfer, a currency account, and an online provider. For a EUR payment within the SEPA area, it's usually worth starting by checking a SEPA transfer. For USD, GBP, or a payment to a country outside SEPA, you may need SWIFT or a transfer handled by an external provider.
Don't choose a method purely on the promise of a "free transfer." Weigh the full cost of an international transfer: the fee, the exchange rate, any intermediary charges, and the amount that will actually land in the recipient's account.
For a small amount, a low flat fee can matter more. For a larger transfer, the exchange rate carries more weight. A difference of even a cent or two per unit of currency on a large amount can outweigh the bank's own fee.
How much does an international transfer cost? You'll only really know once you've checked the whole transaction, not just the headline fee. The best method gets your money there within the expected time, makes the settlement rules clear, and shows you exactly how much the recipient will get once every fee has been deducted.
