SuanSupplyHow do you work out the real cost of an international payment?
Add up three things: the fee you see, the markup hidden in the exchange rate, and any fees taken by banks along the way. The fee line is only part of it. When a bank converts your money at a worse rate than the mid-market rate (the rate you see on currency sites), the difference is a cost too.
Example with the calculator's default numbers (examples, not quotes): sending US$5,000 to a supplier in China by bank wire with a US$35 fee, a 2.5% markup and US$15 in intermediary fees costs US$35 + US$125 + US$15 = US$175, or 3.5% of the payment. The same payment with a 0.9% Wise fee and no markup costs US$45. Change the numbers to match your own bank and quote.
What is an exchange-rate markup?
It is the gap between the mid-market rate and the rate your bank or payment service gives you. To find it, compare the rate on your bank's confirmation with the mid-market rate at the same time: (mid-market rate − your rate) ÷ mid-market rate = your markup. A markup of a few percent on a large order is often bigger than the wire fee itself.
Why do intermediary banks take fees?
International wires often pass through one or more correspondent banks before reaching your supplier's bank. Each can deduct a fee from the amount, so your supplier may receive less than you sent and ask you to cover the gap. Ask your bank whether you can choose to pay all charges yourself (often called "OUR") so the supplier receives the full amount.
When is a bank wire cheaper than Wise?
When no currency conversion is needed (for example, paying a USD invoice from a USD account) and your bank's flat fee is low, a wire can cost about the same or less. Set "Supplier gets" to the same currency as "You pay in" to see that case. When you convert currency, the markup usually decides the winner, so compare both quotes on the same day.
How do you pay a supplier in China safely?
Pay a deposit by traceable bank transfer to the company account named on your contract, never to a personal account, and pay the balance after an inspection. Read our guides on how to pay Chinese suppliers and Wise vs PayPal for paying suppliers, and turn the payment into a full cost per unit with the landed cost calculator.
Our pick for paying suppliers abroad: Wise
Wise converts at the mid-market exchange rate and shows its fee up front, before you send. Read our full Wise Business review for accounts, limits and how it pays suppliers in China.
Frequently asked questions
How much does an international wire transfer cost?
The visible fee is only part of it. Add the exchange-rate markup (the gap between your rate and the mid-market rate) and any intermediary bank fees. Enter your bank's numbers in the calculator to see the total.
What is the mid-market exchange rate?
The midpoint between the buy and sell prices of two currencies on the global market, the rate you see on currency sites. Banks and payment services usually add a markup to it.
Is Wise cheaper than a bank wire?
Often, when you convert currency, because Wise says it uses the mid-market rate and charges a fee shown up front. Compare both quotes for your amount on the same day: the calculator shows the difference.
Are these default fees real quotes?
No. Every default is an example you can edit. Use your bank's fee schedule and the fee Wise quotes on its pricing page for your amount and currency pair.
Who pays intermediary bank fees?
It depends on the charge option on the wire. With the common shared option, intermediary fees come out of the amount, so the supplier receives less. Ask your bank about paying all charges yourself.
This calculator compares the numbers you enter; it does not quote live fees or exchange rates. Banks and payment services change their pricing, so check a live quote before you send money. We are not affiliated with any bank.