Commonwealth Bank has announced it will absorb correspondent bank fees on all offered currencies for foreign exchange (FX) transfers in a move that is set to save customers millions of dollars every year. With international borders opening and more Australians sending money home for the holidays, it’s an ideal time for International Money Transfers (IMTs) to become simpler and cheaper.
Correspondent banks help move money between countries, however, they can deduct fees from an IMT. In some cases, they deduct a percentage of the amount, often leaving customers surprised as to the amount that has been deducted from their payment transfer.
CBA is now absorbing these correspondent bank fees for IMTs on behalf of our customers, meaning no more surprises from correspondent banks. This change will save our customers money and take the complexity out of FX transfers by providing greater pricing transparency and certainty in the end transfer amount.
CBA Executive General Manager, Payments, Ethan Teas, said: “Our customers have told us it’s hard to predict the cost of IMTs, especially when correspondent banks around the world deduct fees from a customer’s transfer amount. Last year, we started absorbing these fees from our top four currencies – USD, EUR, GBP and NZD. We received such positive feedback from our customers that we decided to extend it to all of our offered currencies to more than 200 countries.”