Is it Worth Sending Money with Australia Post?
Whilst Australia Post is synonymous with postal delivery, you may not be aware they also offer international money transfers. You can either process your transfer online, or at one of the thousands of physical post offices across Australia.
So at first glance they might seem like a convenient choice, but how do you know if Australia Post is a good option for sending money overseas?
In this review, we’ll look at AusPost’s currency exchange services, its strengths and weaknesses, and available reviews. By the end, you’ll know whether or not Australia Post is a smart choice for your money transfer needs.
About Australia Post international money transfers
On top of its core delivery service, Australia Post offers a number of financial services including insurance, travel money, and the ability to send money internationally.
However, when you conduct an international money transfer through Australia Post, you’re actually doing it through Western Union.
You can still arrange your money transfer at a physical post office, but you’ll notice the form you complete is dual branded with Australia Post and Western Union.
Likewise, if you make your transfer online, you’ll technically leave the AusPost website and visit the Western Union portal, dual branded with the Australia Post logo.
From a safety perspective, there’s nothing to fret. Western Union is a hugely reliable partner that’s been handling money transfers for more than 140 years.
Still though, there are other concerns to consider (which I’ll get to later).
For a more in-depth look at the money transfer giant , check out our Western Union review.
Australia Post currency exchange services
When sending money abroad with AusPost, you can only make what’s known as a spot transfer.
This means you’ll have to accept whatever the live exchange rate is when you initiate the transfer. There’s no access to hedging tools that allow you to lock in or target a favourable rate for the future.
In this sense, the service is much more limited than what you can get through a brokerage service like Send Payments or TorFX.
Where Australia Post does offer variety though, is in the various ways your recipient can collect their funds.
Delivery methods
Australia Post’s range of delivery methods makes receiving money transfers more accessible to a wider audience, even to those without a bank account.
Australia Post’s delivery methods include:
- Cash pickup – AusPost’s international money transfer partner has more than 500,000 locations worldwide, where your recipient can collect cash within minutes.
They’ll just need to complete a ‘To Receive Money Form’, confirming some basic details like the transfer total and tracking number, which you’ll need to provide them. - Mobile wallet – Transferring money directly a mobile wallet is a popular option in regions where bank accounts are less common.
- Bank transfer – Depending on your recipient’s location, AusPost also offers traditional bank-to-bank transfers.
How to pay for your transfer
There’s several ways you can pay for your transfer, regardless of whether you’re making it online or at a post office.
Available payment options if you’re sending money online are:
- Debit card
- Credit card
- PayID bank transfer
If you’re completing your money transfer at an Australia Post office you can pay via:
- Debit card
- Credit card
- Google Pay or Apple Pay
- Cash
AusPost fees and exchange rates
Exchange rates
In many cases, the exchange rate you’re offered by AusPost will vary based on your selected delivery option. You’ll usually get the best rate with a ‘bank transfer’, then ‘mobile wallet’, with ‘cash pickup’ transfers normally offering the worst rate.
For transfers to some countries, you’ll be offered the same rate regardless of your delivery option, so it’s best to check the AusPost currency converter online, or with a member of staff in your local Australia Post office.
For bank transfers, the AusPost exchange rate is fairly competitive, and certainly cheaper than the rates offered by Australia’s big four banks. There are cheaper options available though (see our guide to the top five international money transfer services in Australia)..
But what if you have a specific need to send cash?
You can do so easily with AusPost, you’ll just get a significantly worse exchange rate compared to sending a bank transfer.
AusPost will add an fx margin anywhere up to 6% for more exotic currencies, but for popular currency pairs like AUDGBP, AUDNZD, AUDEUR, and AUDUSD, there’s an fx margin of around 1.5%.
A 1.5% fx margin for a cash pickup transfer is not extortionate, but unless it’s your first transfer with AusPost, you’ll also have to pay a transfer fee on top of this fx markup.
Fees
With Australia Post, you’ll be charged a variable transfer fee that’s above the market average for non-bank providers. The fee is calculated based on transfer total, payment method, collection method, and destination country.
It’s difficult to provide guideline figures given how much it can vary, but as an example, if you send AU$2,000 via cash payment at a post office, you’ll pay roughly AU$18 in fees, which is in addition to the fx margin we’ve already discussed.
As a general rule, you’ll likely be charged higher fees if you’re paying in cash or your recipient is collecting cash, compared to a digital transfer being sent to a bank account.
When it comes to calculating the fees for digital transfers, it seems there’s a purposeful lack of transparency, which we found frustrating.
The transfer fee for new customers will appear as zero as part of a promotion.
Great news on your first payment but are they trying to hide something?
The issue is there’s no indication of what the fee would have been, or will be in the future. You won’t know your ongoing fees until you complete at least one transfer and go to make another.
None of the other companies we’ve reviewed lack this transparency around transfer fees.
What’s the maximum amount I can send?
Transfers made at an Australian Post outlet are capped at AU$9,000 per transaction, though some destination countries have their own limits in place that also apply.
Many online transactions have a daily limit of AU$5,000, but if you’re paying via bank transfer directly to your recipient’s bank, your maximum send total is equivalent to $50,000 USD.
Australia Post considers any transfer exceeding AU$9,000 to be a ‘large transfer’, where you may need to provide more information before your transaction can be approved.
Is there an Australia Post app?
Yes, available on Google Play and the App Store, the Australia Post app is highly reviewed and has more than 5.7 million active users.
Sadly, this app does not facilitate international money transfers, as it’s focused largely on parcel tracking and other related services.
To send money abroad digitally with AusPost, you’ll need to visit the Australia Post website and click through to the ‘Send Money’ section of the site.
You could always download the Western Union app.
Is it safe to send money abroad with AusPost?
Yes, given that all international transfers with AusPost are handled exclusively by their partner, which happens to be ​​the largest and oldest money transfer provider in the world, you can rest assured your money is in very safe hands.
They’re a global company that’s regulated all over the world, including ASIC in Australia, which ensures they are fully on top of compliance and safety with regards to money handling.
On top of their lengthy history, they’re also publicly traded, which brings added scrutiny.
Australia Post reviews
Seeing as all overseas money transfers with AusPost are exclusively handled by Western Union, there’s very little in the way of AusPost reviews that specifically relate to sending money abroad.
Australia Post has not claimed a profile on the verified review site ‘TrustPilot’, and the overwhelming majority of AusPost reviews online do not relate to money transfers.
Conversely, AusPost’s money transfer partner has a 4.2 out of 5 star rating on TrustPilot, based on more than 90,000 reviews, Which speaks more to the service as a whole, not specifically the offering with Australia Post.
However, seeing as ​​you’d be dealing with the same customer service teams and digital platform, it still acts as a good indicator that users are mostly fond of the service.
How to make an international bank transfer with Australia Post
Choose your preferred method to transfer
The 3 ways you can transfer money abroad with Australia Post are:
- At a post office: great if you’re seeking face to face support
- Online: As a new user you’ll need to complete a one-time verification check as part of your registration
- Start online, finish in-store: Confirm your transfer details online and select ‘pay in store’, you’ll then have 24 hours to complete your money transfer at the local post office.
Provide your personal details
Regardless of your transfer method, you’ll need to provide one of the following forms of valid ID to confirm your identity:
- Australian driver’s licence
- Passport
- Australian Proof of Age card
- ImmiCard
Confirm recipient details
All transfers require you to provide the recipient’s full name and address, but the amount of additional details you need depends on your delivery option as outlined below:
- Cash pick-up: No further details required
- Mobile wallet: Mobile number (including country code)
- Bank Deposit: Bank name, location, and code (BIC), account name and number (IBAN)
For transfers completed at an AusPost Office, there’s a short form to fill in that clearly states what recipient details are required. If you’re completing your transfer online, these fields will filter automatically based on which delivery option you select.
Share your tracking number with your recipient
Once you’ve confirmed and locked in your trade, you’ll be provided with a transfer number (MTCN). You need to share this with your recipient so they can collect your funds. You can use this same number to track the status of your transfer online.
How long does it take to send money abroad with Australia Post?
This will all depend on where your funds are being sent and the delivery option you choose.
On average, cash pickup is the quickest delivery method, as funds are typically available within minutes. If you’re sending directly to a bank account or mobile wallet, then it should take somewhere between 1 hour – 2 business days for your transfer to arrive.
International wire transfers are not handled on weekends, so you should factor this into your timeline if there’s a set deadline that your funds need to arrive by. It’s also worth allowing some extra time for larger transfers, as you may be subjected to extra security checks.
Once your funds are en route you’ll receive a guideline delivery time, as well as a tracking number (MTCN), which you can use to follow the status of your transfer until it arrives.
When to use Australia Post for international money transfers
Now that you know Australia Post is a fairly expensive route for overseas money transfers, it should come as no surprise that we do not usually recommend using Australia Post for international money transfers.
Having said that, if your recipient doesn’t have access to a bank account, or they urgently need cash, then Australia Post is a reliable choice for getting your funds delivered fast.
Australia Post utilises the industry’s most extensive network of pick-up locations, which beats even the likes of MoneyGram.
However, providing you can transfer to a recipient’s bank account, we recommend choosing a leading currency broker or money transfer app to take advantage of some of the industry’s best rates and bespoke service.
For smaller transfers less than AU$20,000, you’re best off choosing a streamlined service to secure yourself the best available rates. Consider Wise, the industry’s leading money transfer app that is highly renowned for offering a fast, reliable and low-cost service.
For large transfers, your best bet is working with a leading currency broker like Send Payments or TorFX, who will assign you a dedicated account manager to provide a bespoke service and help you get the most out of each trade, based on your unique requirements.
Our Verdict
By partnering with Western Union, Australia Post provides a reliable option for sending money overseas. You can send money to almost any country in the world, with a variety of delivery methods available, like cash pick-up or mobile top up.
If you prefer to make your transfer in person, it’s certainly convenient to do so at your local post office.
But unless you’re determined to do it face-to-face, it can be difficult to justify using AusPost, as it is significantly more expensive than other leading providers.