International Payments for Business: Fees and FX (2026)

The true cost of paying an overseas supplier is the transfer fee plus the exchange-rate margin, measured against the mid-market rate. On a USD 10,000 payment priced on 16 and 17 October 2026, published pricing put the cost above mid-market anywhere from $0 (inside a Revolut plan allowance, plus the plan fee) to about A$600 (PayPal), with Wise at A$50.62 and Westpac's published board rate about A$573.

This is general information, not financial product advice, and it doesn't consider your circumstances. Read the product disclosure statement (PDS), target market determination (TMD) and fee schedule for any account or foreign exchange product, and consider getting advice.

Licence and ADI status as at 17 October 2026, from provider websites and APRA's list updated 9 October 2026.

How international payment costs work

Every international payment has up to four costs:

1. Exchange-rate margin. The gap between the rate you get and the mid-market rate. Banks build it into their retail rate; CommBank's rates page says its advertised retail exchange rate "includes a margin". This is usually the largest cost and the least visible.
2. Transfer fee. A flat or percentage fee for sending. The big four charge little or nothing online when you send in foreign currency (Westpac and ANZ $0, CommBank waived) but charge $18 to $30 to send Australian dollars overseas.
3. Intermediary bank fees. SWIFT payments can pass through correspondent banks that deduct fees on the way. CommBank says it covers correspondent fees for most cross-currency payments but not the payee bank's own fees.
4. Receiving fees. The supplier's bank may charge to receive, as Australian banks do when you are paid from overseas: Westpac charges $12 (waived at A$100 or less), CommBank up to $11 and ANZ up to $15 on A$300 or more.

Moneysmart's guidance says to check both the exchange rate and the fees, whether the rate is guaranteed, and whether the receiver will be charged.

How to measure the true cost against the mid-market rate

1. Get the mid-market rate at the same moment as your quote. The Reserve Bank publishes a daily AUD rate; some providers show a live mid-market rate in their calculators.
2. Label the direction. "0.6946" means USD 0.6946 per A$1. To find the Australian dollars needed for a USD bill, divide the USD amount by that rate. Our guide to planning overseas supplier payments shows why getting this backwards wrecks a budget.
3. Work out the AUD at mid-market: USD amount ÷ mid-market rate.
4. Get the provider's total AUD debit for the same USD amount delivered, including every fee.
5. True cost = total AUD debit − AUD at mid-market. Divide by the AUD at mid-market for a percentage.

A margin on the rate costs slightly more in Australian dollars than the percentage suggests, because you divide by the rate. Westpac's published sell rate on 16 October 2026 was 3.83% below mid-market, which means paying 3.98% more Australian dollars.

Worked example: paying a USD 10,000 supplier invoice

Assumptions (illustrative): a US supplier invoice of USD 10,000, paid to a US bank account; funded by bank transfer from an Australian dollar account; mid-market rate 0.6946 USD per A$1 (the rate in Wise's calculator at 11:47pm AEDT on Saturday 17 October 2026; the RBA's published rate for 16 October was 0.6947); standard published pricing, no negotiated rates; weekday conversion unless stated; no intermediary or recipient bank fees. AUD at mid-market: 10,000 ÷ 0.6946 = A$14,396.78.

The arithmetic:

• Wise: quote generated for USD 10,000 delivered by local transfer: A$14,447.40 debited, of which A$48.95 is the 0.34% fee and A$1.67 the fixed fee. A$14,447.40 − A$14,396.78 = A$50.62.
• Airwallex: 0.6946 × (1 − 0.005) = 0.6911. 10,000 ÷ 0.691127 = A$14,469.12. Add A$29 for the month if your Explore plan doesn't meet the A$5,000 deposit or A$10,000 balance condition.
• Revolut Basic: (A$14,396.78 − A$2,000) × 0.6% = A$74.38, plus A$10 transfer fee = A$84.38. On the Grow plan the whole amount fits inside the A$25,000 allowance. Revolut charges 1% outside market hours, which would be A$143.97 on this payment if converted on a weekend.
• OFX: OFX doesn't publish its margin. Its online calculator showed customer rates of 0.6847 and then 0.6843 on 17 October 2026, about 1.4% to 1.5% below mid-market. 10,000 ÷ 0.6843 = A$14,613.47, plus the A$10 cross-border wire fee on its business plans = A$14,623.47. Larger or regular clients may be quoted a different rate.
• PayPal: 0.6946 × 0.97 = 0.6738, so 10,000 ÷ 0.67376 = A$14,842.04. At 4%: 0.6946 × 0.96 = 0.6668, so A$14,996.64. PayPal charges 4.0% on some conversions, including paying in a currency different from the listed price, and 3.0% on others.
• Westpac: 10,000 ÷ 0.6680 = A$14,970.06. This is the published board rate for telegraphic transfers. Westpac quotes a rate when you start an online payment, and business customers sending larger amounts may be offered a different dealt rate.

Rankings change with the amount, currency, timing and any negotiated rate, so run the same five steps on real quotes for your payment. On a USD 1,000 payment, for example, a flat A$10 fee is a much bigger share of the cost than on USD 10,000.

Banks, Wise Business, Airwallex, OFX, Revolut Business and PayPal compared

Who each provider type may suit:

• Banks may suit businesses that want everything in one ADI, pay overseas occasionally or need trade finance, and can negotiate a dealt rate on larger amounts.
• Mid-market platforms such as Wise Business and Airwallex may suit businesses paying several suppliers a month in common currencies and wanting local account details to receive funds.
• Currency brokers such as OFX may suit businesses making larger or regular payments that want a dealer, forwards or limit orders.
• Plan-based digital banks such as Revolut Business may suit businesses converting a predictable amount each month that fits a plan allowance.
• PayPal may suit occasional payments to suppliers who only accept PayPal, accepting a higher conversion cost.

Multi-currency accounts

A multi-currency account lets you hold foreign currency and choose when to convert. If you both receive and pay in US dollars, holding the dollars avoids converting twice.

Interest products are investments or savings products with their own PDS and risks; the rates shown are the providers' stated figures and are variable.

The Financial Claims Scheme point matters if you keep large balances. APRA says the scheme protects deposits up to $250,000 per account holder at each Australian-incorporated ADI and "does not apply to deposit accounts with funds in foreign currencies". For AUD accounts, compare options in our business bank accounts guide and business savings accounts and term deposits.

Receiving foreign currency and marketplace payouts

Receiving costs work the same way in reverse: the provider buys your foreign currency at a rate below mid-market. Westpac's published telegraphic transfer buy rate at 4:10pm on 16 October 2026 was 0.7215 USD per A$1.

Illustrative: a US customer pays you USD 10,000 into a Westpac Australian dollar account. 10,000 ÷ 0.7215 = A$13,860.01, less the $12 inward fee = A$13,848.01. At mid-market (0.6946) the same dollars are worth A$14,396.78, so the conversion costs A$536.77 (3.73%) plus the fee. A dealt rate from the bank may be different.

Your options for receiving:

• Local account details abroad. Multi-currency providers give you local account details in other currencies (Wise lists 22 currencies; OFX lists USD, GBP, EUR, CAD and AUD), so customers and marketplaces can pay you as a local payment. Wise lists free receipts through local details in 22 currencies and USD 6.11 for SWIFT receipts; OFX lists $5 for international SWIFT receipts, waived from 12 May 2026.
• Hold, then convert. Keep the foreign currency until you need it, or use it to pay suppliers in the same currency.
• Marketplace and platform payouts. If a marketplace offers to convert your payout to Australian dollars, compare its rate with the mid-market rate before accepting. Reconcile gross sales, fees and payouts with our guides to platform income statements and marketplace profit per order.
• PayPal. PayPal charges sellers 2.90% + 30c on domestic commercial payments, plus 1% when the payer is overseas, and 3.0% or 4.0% above base rate when converting.
• Cards from overseas customers. Card acquirers charge more for foreign cards. Stripe, for example, charges 3.5% + 30c online on international cards until its price falls to 2.80% + 30c on 1 April 2027, the date an RBA cap of 1.0% on foreign-card interchange starts. See our EFTPOS machine comparison for in-person rates.

Forward contracts and hedging basics

Exchange-rate risk is the chance that the Australian dollar falls between ordering and paying. At 0.70 USD per A$1, a USD 10,000 bill costs A$14,285.71; at 0.65 it costs A$15,384.62, a difference of A$1,098.91.

Common tools, described for information only:

• Pay at spot. Convert on the day you pay. Simple, and fully exposed to rate moves.
• Forward contract. Lock a rate today for a later payment. Westpac's Fixed FX, for example, fixes a rate for a payment up to one month ahead (three months on application), up to A$50,000 per payment and A$250,000 outstanding, with no direct fee. If you cancel early you may pay an unwinding cost, and you don't benefit if the rate improves. Brokers may offer longer terms and ask for a deposit.
• Limit order. Convert automatically if the market reaches a target rate. OFX lists forwards and limit orders on its business plans; Revolut offers limit and stop orders on Grow and above.
• Natural hedge. Use foreign-currency income to pay foreign-currency costs, which a multi-currency account makes easier.
• Price in Australian dollars. Ask suppliers to invoice in AUD. The risk moves to them, and they may price it in.

Forwards and similar products are derivatives. Providers need an Australian financial services licence and generally must give you a PDS. Check it for deposit requirements, early-termination costs and what happens if you can't settle. Run your own sensitivity numbers with the supplier payment scenarios guide and put the result in your cash flow forecast.

Regulation: ADIs, licences, AUSTRAC and the FCS

What each term means for you:

• ADI (authorised deposit-taking institution): licensed by APRA to take deposits. Australian dollar deposits are covered by the Financial Claims Scheme up to $250,000 per account holder per ADI if the ADI fails. Use APRA's deposit checker to confirm a specific account.
• Purchased payment facility (PPF) provider: authorised by APRA to hold stored value, as Wise is, but not on APRA's list of ADIs covered by the scheme. Ask how client money is held and safeguarded.
• AFSL: an ASIC licence to provide financial services such as non-cash payments and foreign exchange products. Check the number using ASIC's registers, and confirm the provider is a member of the Australian Financial Complaints Authority.
• AUSTRAC registration: Moneysmart says money transfer services must be registered with AUSTRAC. You can search the Remittance Sector Register.
• Scams: Moneysmart warns that money sent to a scammer is almost impossible to recover. Confirm any change to a supplier's bank details by phone, using a number you already hold, before paying. Our guide to scams targeting small business covers invoice and payment-redirection scams.

GST and customs on imported goods

Paying the supplier is only part of the landed cost. According to the Australian Border Force, GST on a taxable importation is 10% of the value of the taxable importation, which is the sum of:

• the customs value of the goods;
• any customs duty;
• the cost to transport and insure the goods to Australia; and
• any wine equalisation tax.

The customs value must be in Australian dollars at the customs exchange rate for the day the goods were exported, not the rate you paid your supplier. Certain importers can defer import GST to their BAS.

Illustrative only, with a fictional duty rate: customs value A$14,300, duty at an assumed 5% = A$715, transport and insurance A$900. Value of taxable importation = A$14,300 + A$715 + A$900 = A$15,915. GST = 10% × A$15,915 = A$1,591.50. Your actual duty depends on the tariff classification and any trade agreement.

If you're the importer and registered for GST, the import GST is generally claimable on your BAS, and it often appears again on your customs broker's bill. Our guide to reconciling customs GST with the supplier invoice shows how to record it once. Add freight, duty and fees to unit costs with the landed product cost guide, and for overseas software subscriptions see GST on overseas software.

Recording foreign currency in your books

Record three things separately: the bill, the payment and the transfer fee.

Illustrative, using the Wise quote above:

The A$115.15 loss came from the Australian dollar falling between the invoice date and payment. It isn't a fee and shouldn't be added to the cost of the goods in the bill. Keep the rate source, date and direction for each conversion, as set out in our guide to foreign-currency invoices and the AUD GST trail. Multi-currency features vary by accounting plan; compare plans in our Xero pricing and MYOB pricing guides. If a bank feed shows the payment twice or not at all, see missing bank feed transactions.

Checklist before you send

1. Confirm the supplier's bank details through a known contact, especially if they have changed.
2. Get a quote showing the foreign amount delivered, total AUD debited, all fees and how long the rate is held.
3. Take the mid-market rate at the same moment and calculate the true cost.
4. Decide who pays intermediary and receiving fees, and tell the supplier.
5. Check the provider's AFSL, AUSTRAC registration and AFCA membership.
6. Avoid converting on weekends with providers that charge more outside market hours.
7. Save the quote, confirmation and rate details with the bill.

Key takeaways

• Compare the total Australian dollars debited against the mid-market rate at the same moment. The fee alone hides most of the cost.
• On a USD 10,000 payment in October 2026, the gap between the lowest and highest published cost above mid-market was about A$600.
• A rate 3.83% below mid-market means paying 3.98% more Australian dollars, because the margin works on the divisor.
• Wise, Airwallex and OFX are not ADIs, so the Financial Claims Scheme does not cover balances; foreign-currency accounts are excluded even at banks.
• Import GST is 10% of customs value plus duty plus transport and insurance, converted at the customs rate on the day of export, not the rate you paid.
• Record the bill at the invoice-date rate, the payment at the actual AUD debited, and the difference as a realised exchange gain or loss.

Where to get help

• Moneysmart: sending money overseas for comparison tips and scam warnings.
• APRA: Financial Claims Scheme and its deposit checker.
• AUSTRAC Remittance Sector Register to check a money transfer provider.
• Australian Border Force: cost of importing goods for duty, GST and customs exchange rates.
• Australian Financial Complaints Authority if a dispute with a bank or payment provider isn't resolved.
• Scamwatch to report a payment scam.
• A registered tax agent or BAS agent for import GST and foreign exchange gains and losses, and a licensed adviser before using forwards or other hedging products.

Related tasks

Find more account, lending and payment guides in the business banking and loans hub.