How to get the exact amount as it was sent via wiretransfer?

October 13, 2012 8:36 AM

How to get the exact amount as it was sent via wiretransfer? I noticed that even an amount is sent by setting that the sender is paying the fees of the transfer, still there is some amount less which arrives to the receiver destination account. What is the reason for this? How can I minimize this loss and how can I find out where this loss happened? I noticed so far a loss of $30, but last time arriving of an about $250 less was a bit shocking for me. This difference is a bit strange for me, mainly that I do not have a clue where exactly this loss happened to park. Thanks for your suggestions!
posted by fifigyuri to work & money (10 answers total)

Both the originating and receiving bank may impose fees, and the payer may only be paying the fees of the originating bank.

Does this wire transfer involve multiple currencies? The banks involved may be using disfavorable foreign exchange rates.
posted by grouse at 8:39 AM on October 13, 2012

Can you be specific about how these transfers are taking place? Are they bank to bank transfer or are you using a service like Moneygram? Is there a currency exchange going on?
posted by DarlingBri at 8:40 AM on October 13, 2012

USD sent to an USD account. It is sent from USA, Pennsylvania, TD Bank to UK, Isle of Man, Barclays.
posted by fifigyuri at 8:55 AM on October 13, 2012

Having recently looked into a similar issue - Wiring money seems like one gigantic scam with everyone involved taking a sizable cut. If you don't need it there instantly, just mail a check. My bank charges me $10 to accept/convert a foreign check, done.
posted by pla at 9:30 AM on October 13, 2012 [1 favorite]

Are you sure that there is not a $ to £ to $ conversion going on on their end? And the loss is from the currency conversion(s).
posted by saradarlin at 10:13 AM on October 13, 2012 [4 favorites]

Here's some general info. that may be of interest. ACH vs. wire transfers. Wire transfers, and more on wire transfers and fees.
posted by gudrun at 11:37 AM on October 13, 2012

I've been sending and receiving wire transfers for sixteen years. Sometimes fees are deducted, sometimes they aren't, and I can never really predict if it will happen and what the amount will be. I think the reason is sometimes because intermediary banks are involved if the two banks don't have direct "correspondence" and then they take a fee. I think if you use Western Union then such unknowns can be avoided.
posted by Dansaman at 5:52 PM on October 13, 2012

@pla, wire transfers are definitely cheaper and faster in my experience than international cheques in general. An international cheque can take up to 3 months to process, and I've been quoted $80 processing charges out of a $250 cheque (US to Singapore). Wires take a couple of days and end up costing 1-5% of the total. Western Union is surprisingly competitive for transactions in Asia under $200 and gets to really weird places. Paypal is actually pretty decent too.

Your bank should be able to tell you where the costs went. $250 is high, but not unreasonable for a large transaction. When I send wires, I sign that the costs are to be bourne by my account, but the recipient's bank may still impose another fee on to their client, plus the exchange rates always shave off something.
posted by viggorlijah at 9:02 PM on October 13, 2012

$25 or $30 fee is very typical. $250 is extremely abnormal and doesn't sound right at all.
posted by Dansaman at 12:00 AM on October 14, 2012

I got very tired of wire transfer fees (Australia to USA) and started using xe.com, which apparently makes its money from currency trading (and speculation, which they are very happy to let you do) rather than general banking. When I send funds to the USA they arrive via EFT (electronic funds transfer) and there is no wire fee at all. I have no idea whether the same thing applies to a bank in the Isle of Man; they may or may not offer EFT there, but if they do you will be saving a bundle.
posted by Joe in Australia at 1:07 AM on October 16, 2012 [1 favorite]