International Banking Wire Fees When Paying For Cars or Services
When sending wire transfers you would expect the dollar amount you send to be delivered to the intended party. Unfortunately that is not always the case. Despite being charged the standard wire fee for the transfer by your bank, there are times when that fee is not enough. And here's why.
There are tens of thousands of banks around the world. Some are larger than others, with some operating internationally or locally. If you have an account with a local bank in your country and you want to send an international wire transfer, your bank won't be able to send it directly to the overseas account. They will use an intermediary, which is usually a major bank such as HSBC or JP Morgan Chase Bank, to deliver the wire overseas.
In doing so, your local bank not only charges you the standard wire transfer fee, but also the additional fee they pay to the intermediary bank to deliver the transfer overseas. This is not known by many international car buyers, leaving many US dealers and service providers short on payment. It is why some invoices include a note asking you to include all additional fees in your payment.
If you do not bank with one of the major international banks, you will have to account for the additional fees your bank will charge to deliver the international transfer. The amount usually ranges from $35 to $40, but it can go higher depending on your bank. We suggest you contact your banker to check the exact amount they charge.