If you are a resident of the United States of America and have a desire for International wire transfer funds abroad and have plans of opting for Bank of America as per your perception considering them to be the best for fulfilling your wish? Well, as it is precisely said that no services are delivered for free and no benefits come without charging something.
So be wise while opting for such services and give a nice knock to your brain because there are various scams in form of the hidden transfer fee which these banks impose. Read on to know what is Wire International Transfer Fee all about?
What is Bank of America all about?
Bank of America has bagged the position of the second-largest bank in the United States of America and also stands on the list of one of the top ten largest banks globally. Bank of America is a financial behemoth organization that provides its banking and finance-related services to over 66 million customers approximately across the globe. In conjunction with, an array of retail, business, and investment services.
However, irrespective of Bank of America’s boundless and unflagging reputation and voluminous scope of services, a few drawbacks of the Bank of America cannot be neglected which include its slow and expensive process of funds transfer from the U.S.A. to abroad.
By shoveling into the exchange rates and schedule of the fee imposed by the bank, it was proven that the flow of bank wire of US dollars from the Bank of America transferred to numerous bank accounts overseas are layered with hefty and veiled exchange rate fees over and above fixed fee of around the US $45. Moreover, it customarily means that the exchange rate fee will devour more than 20 percent of the amount you are planning to transfer.
What is International Wire Transfer?
International wire transfers were stationed in the year 1872 by the Western Union bank in association with its telegraph network. Bases of an International wire transfer are on the same supposition of telegrams.
Since the renaissance of International wire transfer and with the invention of the internet network, International wire transfers have acquired infinite recognition almost around every nook and corner of the globe and exploded tremendously.
And with its spread like a forest fire all over, approximately 10,000 SWIFT institution’s members send around messages around 24 million approx on the network. With such a bulk of messages being sent and received it is almost negligible to trace the flow of funds and hence it might result in people losing their money.
SWIFT system is the prominent system through which Banks including Bank of America carries out the funds transferring process. SWIFT is a delineated messaging system that is an integral and eminent international communication network used by banks.
When a person asks for an international wire transfer, the person’s bank notifies the network and the payment travels through this network system. In case a bank doesn’t have an analogous account or depending on how far the funds have to travel, the money keeps on bouncing from bank to bank till the time it locates a link to its intended destination.
The drawbacks of an international wire transfer
The most initial drawback of the International wire transfer is its tortoise speed of funds transfer, and it is uncertain too. Furthermore, as the exact route cannot be traced through which your funds will travel hence there is no reliable way of tracking the arrival of funds as well.
Another major drawback of this system is that if the client is dubious regarding the information or doesn’t has the access to the precise information, in such case one wrong number punched on and the client would lose the money and the funds will be transferred to the wrong side of the world
More in addition to the list of flaws is the hidden fees which is a major issue and cannot be neglected. Though your bank might be sincere enough to notify you about the fees it will charge but you will not be informed regarding the receiving bank’s fee and not even the other fees the negotiator banks in the SWIFT network might muster upon the client’s transferred funds.
Moreover, banks might misguide the clients regarding the conversion rates. However, banks fetch a lot of revenue by imposing higher foreign exchange rates and they will rarely divulge about it in front of the client.
International Wire Transfer fees of Bank of America?
If you are an account holder in the Bank of America and have this perception that it will be feasible to choose the bank’s services when you desire to send an international wire transfer. But are you aware of the high fees imposed by the Bank of America?
Bank of America imposes $15 for an incoming wire transfer and a colossal dollar of around $45 for any outgoing USD transfer of funds.
Do you seriously believe this notion that transferring funds abroad would charge such an enormous amount? Well, if yes then you are sadly mistaken because transferring funds overseas doesn’t apply some additional burden of the general workload of the bank.
The only possible reason behind such hyped wire transfer fees is that the Bank of America and the other banks following the same footsteps charge international wire fees because they are well aware that their clients don’t have any other option to opt for. Moreover, the research process of digging out the best deal for the international wire transfer is a draining process to carry out.
Though it is true that for a long time span, banks were the only route to get wire transfer, jobs have done across the globe and overseas business partners. But with time this boundary has transformed as well.
Alternative measures to cut short the International Wire transfer fee
Cheaper rates of transferring funds: one alternative can be done to attain lower fees by initially converting the U.S. dollar into foreign currency, prior to transferring the funds rather than sending directly the U.S. dollars abroad.
Fees imposed on the wire transfer can be cheaper: Some financial institutions impose lesser U.S. dollars as wire transfer fees. To save money on recurring wire transfers it will be appropriate to opt for banks offering cheaper rates until and unless the client exceeds the maximum limit allowed by the bank.
Frequently Asked Questions
Q1. How does an international wire transfer work?
A1. you only need to create an international wire transfer by punching in the details of the person who will be receiving the funds through online banking services. After that pay for your transfer and after that banks take over the process of providing the funds to the receiver and notifies it through the receipt of the fund transferred.
Q2. What does international wire transfer mean?
A2. A wire transfer is a mode of transferring funds electronically over the globe through the network of banks with the help of transferring agencies around the world. The client needs to punch in the details like bank account number and the amount to be transferred.
Q3. What information is needed for international wire transfer?
A3. Information Required to Send and Receive International Wire Transfers includes:
- Recipient’s full name and address.
- Name and full address of recipient’s bank.
- Recipient’s account number and account type i.e. checking or savings account
- Recipient routing number.
- Recipient bank’s SWIFT or BIC code (if applicable)
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