The True Cost of Using Banks for International Payments
For decades, banks have been the default option for international transfers. Whether you're a business sending supplier payments overseas or an individual transferring funds to family abroad, it's easy to assume your bank is the most reliable and cost-effective route.
But that assumption can come at a cost. A hidden one.
In this article, we'll unpack what actually happens when you make a cross-border payment through a traditional bank, where the real charges lie, and how modern platforms like ORE are changing the game for businesses and individuals alike.
1. Hidden fees: the quiet cost of convenience
Most banks advertise low transfer fees, often suggesting they’ll only charge a flat fee per transaction. But the real margin doesn’t show up in the headline – it’s built into the exchange rate.
Banks typically add a markup of 2 to 5% onto the mid-market rate (the real exchange rate you see on Google). On a £100,000 transfer, that can mean paying £2,000 to £5,000 more than you needed to – without any line item disclosing it.
That markup is where banks make most of their money on foreign exchange, and most customers have no idea it’s happening.
2. Speed and transparency: or lack thereof
International bank transfers can take between 2 to 5 business days to arrive, especially if multiple correspondent banks are involved in the transaction. Each of these intermediaries may deduct their own fees, further reducing the amount received.
What’s more, many banks offer limited visibility once a transfer is initiated. There’s no live tracking, little clarity on when the funds will arrive, and often no way to correct issues without calling a helpline or visiting a branch.
In a global economy where business happens in real time, that’s simply not good enough.
3. Business impact: unpredictability and poor planning
For companies making frequent or high-value international payments, these inefficiencies can add up to thousands in unnecessary costs and countless hours lost in reconciliation and follow-up.
Even more critically, the unpredictability of exchange rates makes it hard for finance teams to plan or hedge exposure properly. Banks often lack the flexibility to lock in favourable rates, schedule forward contracts, or provide regional features like local collection accounts in markets like the UAE.
4. Individuals lose out, too
Retail customers face the same opaque pricing, slow settlement, and lack of support. Whether you're an expat sending funds home, purchasing property abroad, or helping a family member with tuition payments, you shouldn’t have to pay a hidden premium simply for using your bank.
Consumers are increasingly looking for alternatives that are faster, clearer, and more aligned with their needs – particularly when making large or regular transfers.
5. What does a better solution look like?
Modern payment platforms like ORE are designed to solve these problems directly:
- Clear, mid-market exchange rates with no hidden markups
- Transparent pricing you can see before confirming
- Fast transfers, with many settling on the same day
- Real-time tracking and notifications
Support for complex needs, including FX forwards, recurring payments, and localised collection in key markets like the UAE
For businesses and individuals alike, it's about taking control. No more accepting hidden costs or poor service just because it’s what the bank offers.
Conclusion: time to rethink your default
International payments don’t need to be slow, expensive, or confusing. If you’ve been relying on your bank because it feels familiar, it’s worth taking a closer look at what that familiarity is costing you.
At ORE, we believe cross-border payments should be simple, fast, and fair – whether you’re moving £500 or £5 million. And we’ve built our platform to prove it.
Ready to move beyond the bank?
Open an account with ORE today and see the difference for yourself. Prefer to speak to someone? Get in touch with our team – we’re here to help.
