Figuring out the best way to send an international payment can be a special sort of headache. One of the main sources of pain is the lack of transparency provided by most payment providers. And after you’ve come to terms with the bank fees and the poor exchange rates, you then have to pray that your transfer avoids processing delays…which isn’t very likely (sorry).
CIBC Global Money Transfer
Many Canadians send international payments using the CIBC Global Money Transfer service, which supposedly allows you to send money worldwide with no fees.
But is that really the case? We decided to take a closer look at the nuts and bolts of CIBC’s Global Money Transfer. Let’s find out if there’s more to it than meets the eye.
What Fees Will You Be Charged?
Let’s dive right in. CIBC advertises a $0 transfer fee with its Global Money Transfer service. However, the terms and conditions note two very important caveats.
- That ‘CIBC foreign exchange rates apply’, which we’ll get to soon.
- That ‘A Global Money Transfer and a Foreign Exchange transaction counts towards your allowable transaction limit, bank account transaction fees may apply.’
Which means that, depending on your bank account, certain transfers may not actually 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.
Another type of fee to watch out for would be receiving fees. CIBC notes on its website that recipient banks may add to your costs. ‘Our fee is non-refundable. Additional fees and/or taxes may be deducted … by the Recipient Bank.’
Your recipient, understandably, will want exactly what they’re owed and nothing less. These (sneaky) fees can cause tension between sender and receiver – no one wants to pay to get paid.
What About Foreign Exchange Rates?
Exchange rates can often lead to a heated exchange (see what we did there?).
If you send money to a country that uses another currency, CIBC is not offering you the best foreign exchange rate. No bank is. When banks receive an exchange rate, they then offer customers a higher one. The difference between these two rates is where banks make a profit.
With Global Money Transfer, CIBC hides its charges in the exchange rates they offer consumers. By not calling this higher rate a ‘fee’, this charge remains buried beneath the surface.
Do Limits Exist?
They absolutely DO. Typically with CIBC’s Global Money Transfer, you can only send up to a maximum of $15,000. This maximum of $15,000 in total is per 24-hour period not per transaction.
However regulations in some countries can fall outside CIBC’s upper limit. For example, if you’re sending money to China you can only send a maximum of $6,000 at a time. If you’re sending money to the USA, India, UAE or Australia, you can send a maximum of $30,000 at a time.
How Many Countries Can You Send To?
The world is your oyster…well not really.
CIBC’s Global Money Transfer allows customers to send money to around 50 countries including India, the Philippines, China and the United States.
However, considering there are around 200 countries in the world, CIBC’s Global Money Transfer isn’t quite as ‘global’ as advertised.
Should You Use Wire Transfer Instead?
Do you need to send a payment to a country that is not on CIBC’s Global Money Transfer list? Or maybe you need to send more than $15,000? One option you could turn to is wire transfer – but we’re not going to lie, they suck!
When sending a wire transfer with CIBC, the cost of wiring money increases as the amount being sent increases. For example, when sending between $10,000 and $50,000 there is a $50 service fee. But, if you’re sending an amount greater than $50,000, there is an $80 service fee.
Just like with Global Money Transfer, CIBC will again seek to profit from you using its own marked-up exchange rate. And if all these transaction fees weren’t enough to put you off – there’s lots more. Ready?
With CIBC, wire transfers to another CIBC branch incur a receiving fee of $15. This is regardless of the amount being sent. When sending a wire transfer to another bank, receiving charges are likely to be even higher. This will almost always be the case with an international wire transfer.
Many international wire transfers will involve an intermediary bank to help pass funds along. You won’t be surprised to hear that these intermediary banks also charge a fee on the amount that’s being sent.
Sending a wire transfer overseas also means you’ll likely have to make a trip to the bank. This trip will involve collecting information and filling out forms. In order to send a wire transfer through CIBC, you need to provide them with the following information:
– Full name of beneficiary
– Address of branch
– Account number & routing number / transit number
– Institution number
– SWIFT code
– IBAN number/BIC code
And to cap it all off, with wire transfers, funds can take up to 5 business days to become available.
So, in a nutshell, bank wire transfers really and truly do suck. We’ve also learned that CIBC’s Global Money Transfer system is far from perfect. But there is a better way…and Remitr’s got you covered (isn’t that convenient?!).
Using Remitr for International Payments
Here at Remitr, we specialise in international business payments. It’s the entire reason our service was built.
Our Global Network allows you to send money to over 150 countries worldwide. There’s no waiting around either, as funds are delivered in 1-2 business days. We offer you the best live foreign exchange rates – and charge a flat fee of just $5 to most countries! Seriously.
We’ve even got you covered for receiving your online sales payouts. The FREE Remitr Global Business Account (GBA) makes getting paid painless. Receive in USD, EUR or GBP from your customers or your payment processor, and save upwards of $2.5k* per month in currency costs (estimated per 100k in sales).
Oh, and one more thing…our service doesn’t charge your receiver’s account. You’ll never have to worry about conflict with your international partners. Using Remitr is completely stress-free – we focus on running your payments, so you can focus on growing your business.
Wondering how we can best serve your company’s unique needs? Send us a message or arrange a call with our Business Payments Specialist today!
