How to avoid Chase Bank’s currency exchange fees on international wire transfers

Chase is a US-based bank and financial service provider. The company currently caters for nearly half of households in America. Their financial services include personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and international transfers to more than 35 currencies. Many private and business customers regularly transfer money abroad with Chase without being aware of the full scope of fees implied.

Sending money overseas with Chase can be expensive and it is difficult to estimate the total cost of an international transfer, due to a complex fee structure and the exchange rate spread. If you wish to send money abroad using Chase (or any other bank) make sure to understand how much you (and the recipient) are being charged on a transfer.

Here is how Chase compares with online providers on international wire transfer fees:

 

Provider	Service Fee	Exchange Rate spread	Total Cost
Chase Bank	$40	unknown	>$40
Transferwise	$5	0%	$5

 

International Wire Transfer Fees at Chase

Service fees	This fee is usually disclosed upfront and is displayed in your online banking interface. Note: online wire transfers can have lower service charges than submitting a wire order in person at your local branch.
Exchange rate spread	Most banks or financial institutions don’t clearly mention their spread on the exchange rate. They might display their rate online or tell you over the phone, but it is up to the customer to calculate the actual cost of the spread.

 

Chase Bank service fees on international transfers

These charges are usually shown upfront. You will be charged a service fee for both incoming and outgoing international transfers. The amount charged may vary depending on the amount you plan to send and the currency being used. Chase Bank currently lets you send money to 35+ currencies.

The following are service fees on international wire transfers you can expect from Chase:

• Outgoing international wire fee: $40
• Incoming international wire fee: $15 (waived for Chase Premier Platinum account holders)

 

Chase Bank exchange rate spread

Exchange rates are constantly changing and your bank or financial institutions are likely to add a spread on the exchange rate, which basically means that you get a bad exchange rate on your international wire. Most banks are not upfront about it and the spreads are almost never clearly displayed. It is up to the customer to calculate the currency conversion loss.

In order to estimate the spread cost of your outgoing transfer, you need to find out the current exchange rate offered by Chase. You might be able to look it up in your online banking. If that isn’t possible, you will have to call your local Chase branch to confirm it.

Once you know Chase’s exchange rate, you now need to determine the current interbank exchange rate. This rate is neither the buy or sell rate. It is the middle point between the two as determined through the global currency markets. To find the current interbank rate, visit XE.com, Yahoo Finance or any other popular online currency conversion site.

Before making an international wire transfer with Chase, divide Chase’s exchange rate with the current interbank rate. Subtract 1 from the result and convert it into a percentage. This figure indicates the percentage of the sent amount you are going to lose.

Example: Sending $1000 (USD) to Canadian Dollars (CAD) (Your Bank’s current USD/CAD rate) ÷ (current USD/CAD interbank rate) – 1 = Exchange rate spread (1.17) ÷ (1.23) – 1 = -0.0487 = 4.87% is your bank’s exchange rate spread You’ll lose 4.87% (or $48.70) on the $1000 you wired due to currency conversion.

 

How you can avoid those fees

If you want to eliminate the hassle of expensive international wire transfers, you should choose one of the providers listed in the table above.

We recommend you choose a regulated provider that offers a secure service and transparently displays its fees and exchange rate. The cost usually varies by the sending amount, the currency and the payment method (credit card, ACH, cash or others). Sending cash is usually the most expensive way to send money and the exchange rates are considerably worse due to the physical interaction of the processing. We suggest using online providers instead.

 

Conclusion

Many people are faced with the problem of non-transparent services when it comes to international money transfers. Most customers are aware that it may be costly but are almost never exactly told about the amounts they will be charged.

Always remember to compare the provided exchange rate with the current interbank rate and consider online money transfer providers as an option in order to avoid costly fees and hidden charges on the exchange rate.