When you send money overseas, a surprisingly complex set of processes happens between you pressing confirm and your family receiving funds. Banks, payment networks, currency markets and compliance systems all play a role — and each step has the potential to take a slice of what you are sending.

This guide explains exactly what happens, where the costs come from, and how to make sure more of your money reaches the people who need it.

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What actually happens when you send money internationally

When you initiate an international transfer, here is the journey your money takes:

1. You create the transfer You provide the amount, the receiving currency, and your recipient’s bank details. The provider locks in an exchange rate at this point (or close to it). Understanding how international money transfers work is crucial at this stage.

2. The funds are collected from you The provider takes your payment via bank transfer, debit card, or another payment method. This is the sending side of the transaction.

3. Currency conversion happens If you are sending AUD and your family is receiving INR, PHP, VND or another currency, the provider converts your funds at the agreed exchange rate. This conversion is one of the main places where costs are built in.

4. The funds are routed to the destination The converted amount is sent through an international payment network to your recipient’s bank or mobile wallet. For bank-to-bank transfers, this often uses the SWIFT network. For faster corridors, providers use local payment rails that can be significantly faster.

5. Your recipient receives the funds The money arrives in your family’s bank account, mobile wallet (like GCash or bKash), or at a cash pickup location.

The whole process can take anywhere from a few minutes to several business days, depending on the provider, the corridor, and the payment method used.

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The two costs of every international transfer

Every international transfer has two types of cost. Understanding both is essential to comparing providers accurately.

1. The transfer fee

This is the visible, upfront cost charged by the provider. It can be:

• A flat fee: A fixed amount per transfer, regardless of how much you send. For example, AUD $4 per transfer. Flat fees favour larger transfers, since the cost does not scale with the amount.
• A percentage fee: A percentage of the transfer amount. For example, 1.5% of AUD $500 equals AUD $7.50. Percentage fees favour smaller transfers.
• No fee: Some providers charge no transfer fee at all on selected corridors. The exchange rate margin is where they make their money instead.

2. The exchange rate margin

This is the less visible cost, but often the larger one. Every currency pair has a mid-market rate — the real, interbank exchange rate you can look up on Google or xe.com. This is the rate at which banks buy and sell currency from each other.

The rate a provider offers you is almost always slightly worse than the mid-market rate. The difference is the margin, and it is how most providers make their profit.

Example: Mid-market rate: AUD 1 = INR 55.20 Rate offered to you: AUD 1 = INR 54.50 Margin: 0.70 INR per dollar, or approximately 1.3%

On a AUD $500 transfer, that 1.3% margin costs you approximately AUD $6.50 in addition to any flat fee.

This is why the number that matters is how much arrives. A provider with no flat fee but a large exchange rate margin can end up costing significantly more than a provider with a small flat fee and a tighter margin.

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How exchange rates are set

Exchange rates change constantly, driven by economic data, central bank decisions, trade flows, political events and market sentiment. The AUD/INR rate, for example, can move 1-2% in a single day around major events like an RBA or RBI interest rate decision.

When you initiate a transfer, the provider locks in a rate for your transaction. Most reputable providers lock the rate at confirmation, meaning the rate you see is the rate your family receives — regardless of market movements after you send.

What to watch for: Some providers quote a rate when you enter your amount but reserve the right to apply a different rate at the time of payment. Always confirm whether the rate is locked at the point you confirm the transaction.

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Banks vs specialist money transfer services

For most people sending money to family overseas, banks are the most expensive option available. There are two reasons:

Higher exchange rate margins: Most major Australian banks apply a margin of 2.5% to 5% above the mid-market rate on international currency conversions. On a AUD $1,000 transfer, a 4% margin costs AUD $40 in exchange rate costs alone, on top of any transfer fee.

Higher transfer fees: Bank international transfer fees typically range from AUD $0 (online or app) to AUD $35 (in-branch) per transfer. Banks that waive the flat fee for online transfers recoup costs through the exchange rate margin instead. Some banks also charge additional correspondent bank fees that are deducted from the amount at the receiving end, meaning your family receives less than expected with no advance warning.

Specialist money transfer services operate differently. They hold licences that allow them to access better interbank exchange rates, and they pass more of that saving on to customers. Flat fees are typically lower, exchange rate margins are tighter, and the total cost of transfer is usually significantly less than a bank wire.

For regular senders, the difference compounds quickly. Sending AUD $500 monthly, a 2% improvement in the exchange rate alone adds up to AUD $120 more reaching your family over the course of a year.

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What affects transfer speed

Transfer speed depends on three factors: the provider, the corridor, and the payment method.

The provider’s network: Specialist providers that have established local banking relationships in destination countries can settle transfers significantly faster than providers relying on correspondent bank chains. A transfer from Australia to the Philippines that takes 3-5 business days through a bank may arrive within hours through a provider with a direct local network.

The corridor: Transfers to major markets (India, Philippines, Vietnam, Indonesia) where providers have deep local networks are typically faster than transfers to smaller or more remote markets.

The payment method: How you fund your transfer matters. Debit card payments are typically the fastest funding option; bank transfers take longer to clear but are the most cost-effective for larger amounts. Once funds are received by the provider, outbound transfer speed depends on the destination.

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Common hidden costs to watch for

Receiving bank fees: Some banks in the destination country charge a fee to receive an international wire transfer. This fee is deducted from the received amount, meaning your family gets less than expected. Specialist providers that use local payment networks rather than SWIFT often avoid this cost entirely.

Correspondent bank fees: SWIFT transfers can pass through one or more intermediary banks on the way to the destination. Each may deduct a fee. This is particularly common for transfers to smaller countries or less common currency corridors.

Card funding surcharges: Some providers charge extra if you fund your transfer with a credit card or certain debit cards. Check the funding method fee before confirming.

Minimum transfer amounts: Most providers have a minimum transfer amount per transaction. Check this if you need to send a small amount.

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How to compare providers effectively

The only number that matters when comparing providers is: how much does my family receive?

Here is how to compare correctly:

1. Enter the exact amount you want to send (e.g. AUD $500) into each provider’s calculator
2. Note the amount the recipient will receive in their local currency
3. Note the total cost to you including all fees
4. Divide the received amount by the sent amount to get the effective exchange rate
5. Compare the effective exchange rate across providers, not the headline rate

A provider quoting a better headline rate but charging higher fees may result in your family receiving less. The only meaningful comparison is the final received amount.

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Transfer limits and compliance

Most providers have minimum and maximum transfer limits. Limits vary by corridor, account verification level, and whether you are sending as an individual or a business.

Large transfers typically require additional identity verification and source-of-funds documentation. This is a regulatory requirement under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), supervised by AUSTRAC — not an obstacle invented by the provider.

For regular senders, completing full identity verification upfront makes subsequent transfers faster and smoother.

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Tips for getting more money to your family

Use a specialist money transfer service, not your bank. For most corridors, specialist providers offer significantly better exchange rates and lower fees than bank international transfers.

Compare the received amount, not the headline rate. Enter your sending amount in each provider’s calculator and compare how much arrives at the other end.

Set up rate alerts. Exchange rates move daily. Most specialist apps allow you to set a target rate and receive a notification when it is hit. Timing your transfer around a favourable rate can meaningfully increase how much your family receives.

Send larger amounts less frequently. If you have the flexibility, sending one larger transfer per month is usually more cost-effective than multiple smaller ones, particularly with flat-fee providers where the fee does not scale with the amount.

Use fee-free corridors where available. Some providers offer specific corridors with zero transfer fees. On these corridors, the exchange rate margin is the only cost to compare.

Complete your identity verification upfront. Verified accounts typically have higher transfer limits and faster processing. Do this before you need to make a transfer urgently.

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Sending money from Australia and New Zealand with OrbitRemit

OrbitRemit supports international money transfers from Australia and New Zealand to 50+ countries, with a flat-fee model and a rate fixed at confirmation.

• AUD to INR: Always fee-free from Australia
• AUD to PHP: Fee-free to GCash and mobile wallets from Australia
• NZD to INR: Flat NZD $4 fee (fee-free above NZD $10,000)
• NZD to PHP: Flat NZD $6 fee (fee-free above NZD $10,000)
• Most other corridors: Flat AUD/NZD $4 fee (fee-free above AUD/NZD $10,000)
• Over 85% of transfers to Asia-Pacific destinations arrive within 2 hours
• Rate fixed at confirmation — the rate you see is the rate your family receives
• No receiving fees deducted at the destination end
• Regulated by ASIC in Australia (AFSL: 470646) and supervised by DIA in New Zealand (FSP7721)
• Rated Excellent on Trustpilot from over 34,000 reviews

Fees and exchange rates are subject to change. Check orbitremit.com for current rates before transferring.

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FAQ’s (Frequently asked questions)

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This guide is for general information only and does not constitute financial advice. Exchange rates and fees vary by provider and change frequently. Always compare current rates before transferring. Last updated July 2026.