Western Union: $1.99 + exchange rate marginĪs you can see above, when you add a margin to the exchange rate, it can make a big difference when converting currency.Here’s what those total cost comparisons should look like: So what does it really cost to make an international wire transfer? When you calculate the true cost, you have to consider the transfer fee plus the exchange rate margin. Sending 50,000 USD – the exchange rate margin adds 1,500 USD.Sending 5,000 USD – the exchange rate margin adds 150 USD to the total.Sending 1,000 USD – the exchange rate margin adds 30 USD to the total.Here are some examples of how much a 3% markup would add up for a few different money transfer values: Wise is the only provider that uses the mid-market exchange rate with no added margin when converting currency. This markup is how many banks make money on currency conversions. Most banks typically add a margin to the mid-market exchange rate, possibly as much as 3%. This is the rate banks use to transfer to each other. When you Google exchange rates, what you see is called the mid-market exchange rate. The USAA website doesn’t indicate which exchange rate they use. Because of this, USAA isn’t usually the cheapest or the fastest option for sending money abroad. Extra steps mean extra costs and extra time. This means your money will pass through an additional bank before leaving the U.S., adding extra steps when processing your transfer. Since USAA functions only within the U.S., they use the Bank of New York Mellon to process international wire transfers. Each of these banks may charge a fee, so USAA charges you more upfront to be able to cover those fees. Your money passes through several banks on its way to the recipient. But if you’re sending money abroad, they add on an additional $25 to cover correspondent bank fees that may arise during a SWIFT transfer. For all transfers, domestic or international, there’s a flat fee of $20. USAA international wire transfer fees can be quite expensive. USAA uses its own exchange rate for international payments, which includes a markup, plus they add a fixed fee, and the total cost might also include fees payable to other banks involved in the transaction. As the rates change frequently, you might not know the exact rate you’ll be charged until you’re ready to transfer. The other providers, that specialize in international money transfers, add a margin to the mid-market rate. This is the same rate you’ll find on Google, with no added margin. In our example above, Wise is the only service that uses the mid-market exchange rate. The table below shows what it would cost you to transfer $1,000 from the U.S. Correspondent bank fees (incurred when other banks handle your money on its way to the recipient)īefore going into the details of USAA transfers, we’re going to take a look at how much it costs to send money abroad with USAA compared to some of the specialist providers we mentioned above.Transfer fee (usually stated upfront, sometimes even “free”).Here’s what you need to take into account when calculating the total cost: The true cost of transferring money isn’t just the bank fee you need to consider the total cost. Go to Wise Go to OFX USAA international money transfer comparison Read to find out more about how USAA compares to these other options. Many USAA international money transfer alternatives are cheaper, faster, and easier to use, such as Wise and OFX. Despite offering a range of products from insurance to banking to investment, it might not be the cheapest choice for international wire transfers. military members, veterans, and their families rely on USAA for their financial services. Wondering how to send money abroad with USAA? This article will cover everything you need to know about USAA international transfers: how much it costs, how long it takes, and what you need to know about the process. USAA International Wire Transfer: Fees, Rates, and Transfer Time Best bank to transfer money internationally.Best foreign currency accounts in the USA.Complete international wire transfer guide.
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