What is CIBC Global Money Transfer?
CIBC Global Money Transfer is a service offered by one of Canada’s largest banks, the Canadian Imperial Bank of Commerce.
Global Money Transfer is a platform offered by CIBC to its customers, which allows them to send money to 80 countries around the world. Customers can send money by signing in to their Online Banking or using the CIBC Mobile Banking App.
Once customers have entered the required information regarding the recipient and chosen the amount they wish to send, the payment will be processed. It can take up to three days for funds to reach the recipient.
Fees
Global Money Transfer is advertised by CIBC as having a $0 transfer fee. However, if you look at their terms and conditions, you will note two important things.
The first thing you’ll notice is they state: “A Global Money Transfer and a Foreign Exchange transaction counts towards your allowable transaction limit, bank account transaction fees may apply.”
This means that, depending on your bank account, certain transfers may not be free. Some fees, not specific to international transactions, can still be charged. These fees may include overdraft fees and service charges that apply to your specific CIBC bank account.
The terms and conditions go on to say “our fee is non-refundable. Additional fees and/or taxes may be deducted from the GMT amount by the Recipient Bank.” This indicates that there’s another type of fee to watch out for – receiving fees.
While you won’t be the one paying this fee, it can still get you into some difficult situations. Why? Because receiver fees can cause some tension between the sender and the receiver.
Your supplier or employees will understandably want to be paid exactly what they’re owed – and nothing less. If they are repeatedly being underpaid, it leaves a bad taste. If this is your supplier, they may start slowing down their service to you, resulting in delayed production and shipments. At the very least, they may start marking up their rates to cover for the loss in revenue due to bank fees.
Foreign Exchange Fees
The second thing that stands out from the terms and conditions of CIBC’s Global Money Transfer is the phrase “CIBC foreign exchange rates apply”.
When you send money to a country that uses another currency, it’s important to note that CIBC are not offering you the best Foreign Exchange rate.
Banks, and most other financial institutions, make a profit when exchanging money from one currency to another. Some charge a markup of up to 5% or more!
With their Global Money Transfer, CIBC hides their charges in the exchange rates they offer consumers. By not calling this poor rate a fee, this charge remains buried beneath the surface. Foreign exchange rates are constantly fluctuating, and can be hard to keep track of transparent FX rates applied by a bank and the exact foreign exchange rates prevalent at that very moment in the currency markets.
REMITR
Here at REMITR, we can solve all your international payment problems.
Our service allows companies to send money to over 150 countries worldwide at any time. With REMITR, you get the best live foreign exchange rate – regardless of banking hours.
We also offer you guaranteed savings, charging a flat fee as low as $5 to most countries – no matter how much you wish to send!
The beneficiary receives all the money that you are promised; we don’t charge any sneaky receiver fees when you send to them in their local currency. This is known as “exact amount deposit” in your beneficiary bank account.
With some banks, transfers can take up to 5 business days. With REMITR, money arrives in your beneficiaries account within 1 business day. Why wait any longer?
Avoid banking fees and unfair conversion rates– get in touch with REMITR today.
