A transfer of 50,000 dollars to a supplier in China can cost your business between 200 and 2,500 euros, depending on the bank, the payment method and the hidden fees in the exchange rate. Most business leaders only discover the true cost when comparing their statement to the amount actually received by their supplier. Here is how this cost is built up, item by item.
Visible fees: what your bank tells you
Most banks display a flat commission per international transfer, usually between 15 and 50 euros. This is the only figure clearly announced before sending, and it is also the smallest part of the real cost for a transfer of a significant amount.
Invisible fees: the exchange rate markup
This is where the bulk of the cost is hidden. A traditional bank almost never applies the real market exchange rate: it adds a markup, often between 1.5% and 4%, without clearly announcing it as a fee. On a transfer of 50,000 euros, a 3% markup represents 1,500 euros, which is invisible on your statement but very real in the final amount.
Correspondent banks: a third tier of fees
When a transfer transits through the SWIFT network via several intermediary banks before reaching the beneficiary, each institution may levy its own processing fees, between 10 and 30 euros each. This explains why your supplier sometimes receives less than the amount you sent, without either party being at fault.
A full numerical example
An SME pays 50,000 USD to a Chinese supplier via its traditional bank. Here is the actual breakdown of the cost:
Flat transfer commission: 35 euros
Exchange rate markup (3%): approximately 1,500 euros
Correspondent bank fees (2 intermediaries): approximately 40 euros
Total real cost: approximately 1,575 euros, which is more than 3% of the transferred amount
Of this amount, only 35 euros was clearly shown before sending. The rest was spread across the exchange rate and the intermediaries.
How to practically reduce these costs
Always ask for the applied exchange rate before validating a transfer, and compare it with the current market rate. Choose a licensed payment intermediary that displays its markup transparently rather than a bank that integrates it without specifying. For recurring transactions, a multi-currency account with a dedicated IBAN avoids part of the conversion and correspondent bank fees.
How OSolto makes these costs transparent
OSolto, a payment intermediary licensed by the ACPR and registered with ORIAS, displays an exchange rate close to market conditions, with no hidden markup. You know exactly what you are paying before validating each transaction, and your beneficiary receives the expected amount, with no unpleasant surprises related to correspondent bank fees.
Do you want to know the real cost of your international transfers? Speak with an OSolto expert for a free analysis of your flows.
FAQ: cost of an international transfer
How do I know what markup my bank applies to the exchange rate? Compare the rate offered to you with the current interbank exchange rate, which can be viewed online. The difference between the two corresponds to the applied markup.
Why is the amount received by my supplier less than the amount sent? This is usually due to fees deducted by the correspondent banks that process the transfer along the way. A direct payment intermediary like OSolto reduces the number of intermediaries involved.
Is a cheaper transfer always slower? No, not necessarily. A specialized payment intermediary can offer a rate closer to the market while maintaining similar or even better processing times than a traditional bank.
