WestPac International Transfers
If you need to make an international transfer, your first instinct might be to turn to your bank.
Westpac is a safe and familiar option if you’re already a customer, but are they a good choice for international money transfers?
The answer might not seem obvious, as sending money overseas can be a minefield of confusing information and hidden costs.
This guide simplifies the process by breaking down Westpac’s exchange rates, fees, and transfer limits, offering clear and concise information.
By the end, you’ll have answers to the most important questions and will know whether or not Westpac is the right choice for sending your money overseas.
How much does an international transfer cost with Westpac?
For all international transfers, there are two types of costs to be aware of, regardless of which bank you choose:
- Transfer fees
- Exchange rate markup
Let’s look at these in more detail, and see what Westpac charges.
Westpac transfer fees
Specialist money transfer companies are gaining popularity in Australia and this has triggered major banks to adjust their fee structures. For online transfers, many banks have reduced or even eliminated transfer fees altogether.
Westpac has a relatively simple fee structure, which we’ve included below:
| Transfer method | Fee (AUD) |
|---|---|
| Transfer made in a branch (sent in either Australian dollars or foreign currency) | $32 |
| Westpac Online Banking or the Westpac app (sent in a foreign currency) | $0 |
| Westpac Online Banking or the Westpac app (sent in Australian dollars) | $20 |
For international transfers made via online banking or the Westpac app, there is no fee.
This is good, as ‘zero transfer fees’ are common among alternative providers. However, it’s important to remember that this doesn’t mean your international transfer is free. Far from it. Exchange rates are what you need to look out for most.
Westpac exchange rates
The markup added to the exchange rate you’re offered is by far the largest expense associated with sending money overseas.
Due to Australian legislation, you’ll always be able to find a bank’s exchange rate advertised publicly. The exchange rate you’re offered is different to the ‘mid-market’ rate that the bank buys the currency at.
Essentially, banks add on a ‘margin’ or ‘FX markup’, meaning they sell you the currency at a worse rate than what they bought it for. This is where banks squeeze as much as they can out of you.
Exactly how much do they charge? A lot.
Let’s look at Westpac’s FX markup for a sample transfer, using their online currency converter.
Say you’re transferring AU$50,000 into GBP. At the time of writing, Westpac’s exchange rate is ​​1 AUD = 0.5004 GBP, meaning your funds would be converted to £25,020.
Compared to the mid-market rate, Westpac applies an FX margin of 3.71%. That’s one of the highest spreads you’ll find of any provider in Australia.
It may not mean much as a percentage but let’s see how it translates to dollars.
For this particular transfer, that margin is equivalent to AU$1,855. An enormous cost!
This is why exchange rates deserve your attention, as securing a good rate is far more important than saving a few dollars on a transfer fee.
It might come as a shock to learn that this margin is quite standard across the ‘big four’ banks. If you test their currency converters and calculate the spread, you’ll find that they all apply a margin of roughly 2.5% to 5%.
Westpac is no exception, making them a particularly expensive option for international money transfers.
How are Westpac transfer costs compared to alternative providers?
Compared to other major banks, Westpac’s costs fall somewhere in the middle of the pack.
However, the reality is that even the cheapest banks can’t compete on price with leading currency brokers and digital providers.
This begs the question, ‘how much can I actually save?’
These percentages are a rough guide:
| Money Transfer Provider | Guideline Margin |
|---|---|
| Westpac | 3.71% |
| OFX | 0.35% – 2% |
| TorFX | 0.15% – 2% |
For specific rates, based on where you’re sending money and how much you’re sending, you can compare live exchange rates with our online comparison tool.
At the time of writing, OFX applies just a 1% margin for the AU$50,000 to GBP example transfer we discussed earlier.
By choosing OFX instead of Westpac it would have saved you AU$1,350!
This isn’t out of the ordinary. In fact, these savings are quite normal, and customer reviews regularly suggest savings of 2-3% compared to the banks.
If you’re transferring much larger sums, you’ll get access to even better rates. We’ve known customers to have secured margins as low as 0.1%.
That means currency brokers can work out more than 10 times cheaper than a bank for sending money overseas.
How long does it take to transfer money internationally with Westpac?
Westpac claims that your funds will normally arrive in your beneficiary’s account within 1-3 business days. Unlike NAB, their website has no other information regarding specific cut-off times, or how quickly Westpac processes an international transfer on their end.
Westpac also offers very few options to track the status of your transfer.
It would seem the most detail you can find is by tracking your pending payment status, which once updated to ‘sent’, means the transfer has been processed by Westpac.
Overall, it doesn’t give you the sense that Westpac is well equipped to offer a comprehensive service for international payments.
Westpac international transfer limits
Westpac’s minimum limit for international transfers varies by currency and destination country.
A minimum transfer value of $1,000 applies for transfers made to any of the following 9 countries: Cambodia, Ghana, Indonesia, Laos, Mexico, Pakistan, Philippines, Thailand, and Vietnam.
The same minimum amount applies to transfers into the following currencies, regardless of destination: Thai Baht (THB), Philippine Peso (PHP), and Pakistani Rupee (PKR).
For international transfers, Westpac applies a default daily limit of AU$750 to those using online banking or the Westpac app. You can, however, increase this limit yourself either online or within the app.
For larger transfers, Westpac will require you to have registered with one of two security protocols.
For transfers up to AU$200,000 you must be registered for Westpac Protect™ SMS code. For anything larger, you’ll have to use a SecurID® Token, which is a small portable device that generates a single-use digital security code.
Westpac does not specify whether or not they have a maximum daily limit.
With that said, they do support fairly large international transfers, as they have a maximum international transaction limit of AU$2,000,000.
Can you use the Westpac app to make international transfers?
Yes, you’re able to send money abroad with relative ease using the Westpac app.
In 2023, Forrester awarded Westpac the ‘overall best mobile app’ and ‘overall digital experience leader’ awards, based on an assessment of Australia’s five leading banks.
With that said, recent iterations of the app have been met with mixed reviews, which include several mentions of the app being buggy, or not very intuitive to use. This is concerning if you plan to rely on the app to securely transfer thousands of dollars.
There are alternative digital providers with more reliable apps specifically optimised for international transfers.
It’s also worth considering whether you should be using an app at all.
Is Westpac a good option for international money transfers?
Westpac isn’t the cheapest bank for international transfers, nor is it the most expensive.
But that’s not really the point.
Across the board, banks simply can’t compete with specialist money transfer companies. Put simply, Westpac offers an expensive solution with sub-par service, and it is not a good option for international money transfers.
So what is the best option?
If you’re transferring underAU$20,000, we recommend a leading digital provider like ‘Wise’. They offer some of the best exchange rates in the industry, likely far lower than any major bank can offer you. Plus, their apps and digital platforms have been developed specifically for international transfers.
If you’re sending over AU$20,000, we recommend using a currency broker. Probably one of TorFX, OFX or Send Payments. They all offer bank-beating rates, and their service is top notch.
TorFX is also our top-rated provider for international business money transfers. Westpac and other major Aussie banks are only worth considering when you’re trading over $10 million annually.
A currency broker is normally always the smart choice for large transfers, as you’ll be assigned an FX expert to guide you through the process.
Aside from the added peace of mind, their guidance has the potential to make you even greater savings. They can help you leverage FX tools to secure a desirable exchange rate, or guide the timing of your trade to capitalise on favourable currency swings.
If you use Westpac for international transfers, you’ll miss out on all of these benefits while being stuck with a lousy exchange rate.