CommBank International Transfers
If you’re already a customer of CommBank, they might seem like the obvious choice to make an international transfer. But are they the best one?
Even if you’re already registered and regularly use your bank for domestic transfers, don’t assume they’re the best option for international ones.
The truth is, there are far better options out there.
In this guide, we’ll simplify the often unnecessarily confusing process of making an international money transfer with a bank.
We’ll review CommBank’s fees, exchange rates, limits, and how long an overseas transfer with CommBank can take.
By the end, you’ll know if CommBank is a good choice for sending your money overseas, and how they compare to alternatives.
Should you use CommBank for sending money overseas?
How much does an international transfer cost with CommBank? There are two types of cost you must consider when making international transfers, regardless of which bank you choose:
- Transfer fees
- Exchange rate markup
CommBank is no different, so let’s look at what they charge for each.
CommBank transfer fees
In days gone by, banks charged a fee each time you made an international transfer, regardless of whether it was initiated online or in-branch.
But, as alternative providers gain popularity, banks are reducing, or even removing their online transfer fees in response.
We’ve summarised CommBank’s transfer fees below:
| Transfer method | Fee (AUD) |
|---|---|
| Issued via a branch | $30 |
| Issued via NetBank or the CommBank app. Funds debited from an AUD account and converted to foreign currency | $0 |
| Issued via NetBank or the CommBank app. Funds debited and credited in AUD currency (no FX conversion) | $22 |
So long as there’s a currency conversion, CommBank no longer charges a fee for transfers initiated via the CommBank app or NetBank, CommBank’s digital banking solution.
This is definitely a plus, as you want to avoid paying this unnecessary fee, just like you can with alternative providers.
But remember, the exchange rate is where you really need to direct your attention.
CommBank exchange rates
The biggest cost associated with sending money overseas lies within the exchange rate.
Thankfully, legislation in Australia requires local banks to publicly advertise their currency exchange rates.
What they don’t advertise though is the ‘fx markup’ or ‘margin’.
This is the difference between the ‘mid-market rate’ and the rate your bank actually offers you.
It’s how banks profit most from your transfer. The higher the margin, the more they make, and banks are notorious for adding hefty margins to the mid-market rate.
So let’s see if CommBank’s fx markup lives up to the bad rep.
CommBank’s online currency converter is straightforward, showing the exchange rate, fees, and the total amount in the receiving currency. At the time of writing, for a $50,000 AUD to GBP transfer, your funds would convert to £24,875. Compared to the live mid-market rate, that’s an FX margin of 4.18%. But what you really want to know is how much that margin costs in dollars. In this case, it would be an astounding AU$2,087. A massive cost!
As we mentioned earlier, the ‘zero transfer fee’ promise doesn’t come close to making CommBank a cheap method for international transfers. Saving a $30 fee doesn’t exactly soften the blow of losing more than AU$2,000!
Whilst this cost might seem shocking, CommBank’s margin is actually within the typical range for Australian banks. Generally speaking, all of Australia’s ‘big four’ banks charge a margin somewhere in the region of 2.5% to 5%. With CommBank falling on the higher end of this scale, it’s safe to say they are one of the most expensive providers for international money transfers.
How do CommBank’s costs compare to other providers?
If we’re solely comparing banks, CommBank is one of the most expensive of the ‘big four’, applying a much higher margin than the likes of NAB.
But the truth is, all major banks, including CommBank, provide worse rates compared to currency brokers and digital providers.
How much can you actually save by choosing an alternative?
You can take these percentages as an approximate guide:
Or you can use our money transfer calculator to compare the costs of Australia’s market-leading providers for a money transfer from Australia to the UK.
For the same AU$50,000 to GBP transfer we looked at earlier, OFX applies just a 1% margin. By choosing OFX instead of CommBank, you’d save AU$1,625!
What’s more, it’s often possible to negotiate better rates with currency brokers over time. Some customers have secured margins as low as 0.2% when transferring large sums.
In other words, choosing a currency broker over a bank can be more than 10 times cheaper. It’s not even close.
Use CommBank’s fx calculator to get an indicative exchange rate for your transfer
How long does it take to transfer money internationally with CommBank?
CommBank states that most international money transfers typically take 3 business days, though this may vary depending on the destination country and the recipient’s bank. Transfers submitted on a public holiday, weekend, or after the cut-off time will not begin processing until the next business day.
CommBank’s website provides details on cut-off times, which vary by destination. For popular currencies like the US Dollar (USD), Canadian Dollar (CAD), Euro (EUR), and British Pound (GBP), the cut-off time is 4:30 pm Sydney time.
If you want to track the status of your international transfer, CommBank charges a AU$25 dollar fee. As if it wasn’t already expensive enough.
CommBank international transfer limits
For security reasons, CommBank sets a default daily limit of AU$0 for international transfers. This is essentially a complete block on overseas transactions, and while this is certainly an inconvenience, you can easily update your limit through the CommBank app.
The bigger issue is that CommBank’s maximum daily limit for international transfers is AU$5,000. To send more, you have to call CommBank or visit your local branch.
It isn’t clear if calling CommBank gives you the option to further increase your daily limit, or if you’d need to contact them separately each time you wish to transfer $5,000.
Having to visit a branch every time you want to make a sizable transfer is even more inconvenient. On top of that, you’d also have to pay a AU$30 transfer fee.
It’s all rather frustrating.
Having to message, call, or visit a branch each time you want to transfer >AU$5,000, essentially rules CommBank out as an option for sending medium-to-large sums abroad.
Can you use the CommBank app to make international transfers?
Yes, CommBank makes it easy to send money overseas using their app.
Their app, with over 10 million downloads, has been well received and is currently ranked #1 in the finance category for Australia on the App Store.
With CommBank, alongside the traditional method of adding your payee’s bank details, you can also make an international transfer simply by providing the recipient’s mobile number. The beneficiary then enters their own bank details through the CommBank Payment Collections system.
This approach has both pros and cons.
By placing the onus on the beneficiary to input their details, you could argue it reduces the chance of error.
On the other hand, breezing through the process so quickly makes it easier to miss a key piece of information, increasing the risk of a costly mistake. Just something to consider when thousands of pounds are at stake.
For medium to large international transfers, it’s best to work with a currency broker, allowing you to double-check everything with an FX expert.
Is CommBank a good option for international money transfers?
Compared to other Australian banks, CommBank ranks near the bottom for sending money overseas.
Their biggest pitfall is that they have some of the worst exchange rates of any money transfer provider in Australia – a crucial factor in our review.
And while you can make an international transfer within the CommBank app, you’re stuck having to message them every time you want to transfer more than AU$5,000.
So, as is the case with many banks, CommBank is an expensive and restrictive route for overseas transfers.
We do not recommend using CommBank for international money transfers.
Instead, for all medium-large sized transfers (>AU$20,000), opt for a currency broker like Send Payments or OFX.
In doing so, you stand to potentially save thousands of dollars, experience less restrictions, and gain access to award winning customer service from fx experts.
Being assigned a dedicated account manager is pivotal. These account managers are experts in their field, and will be on hand to ensure everything goes smoothly. They can even help you time your trade to capitalise on favourable currency swings, or leverage other fx tools, which can lead to even greater savings.
When using CommBank to send money overseas, you get none of these benefits. That’s why for those making large international transfers, choosing a currency broker is a no brainer!
But should you still use CommBank for smaller international transfers?
We don’t think so. For smaller transfers under AU$20k, your best bet is a leading digital provider like Wise. They have a slick app, optimised for low-value international transfers. You’ll get a much better rate and the payment will reach the beneficiary faster.