The Commonwealth Bank will cut the fees it charges for international money transfers by as much as 70 per cent which should prompt the other three majors to follow suit.
CBA customers can now send money securely to more than 200 countries in over 30 currencies through NetBank or the CommBank app using just a mobile phone number, 24 hours a day, seven days a week.
From now on, customers transferring $1000 or less overseas using NetBank or the CommBank app will now pay $6 - which is down from $22, the lender said in a release.
Australia’s largest bank said those customers making a transfer of more than $1000 will pay $12 compared to the $22 charged before.
The fee for funds debited from an Australian account and converted to foreign currency is also $12 but that charge will rise to $22 when those funds are debited and credited in Aussie dollars.
CBA executive general manager Clive van Horen said the 70 per cent fee reduction would benefit many customers who sent money to friends and family overseas.
He said while many people transferred cash to family overseas he said transfers into Australia were increasing as the international student population grew.
“More than three quarters of our customers go online to send money overseas, making it quicker, and more convenient.
“As such, we’ve reviewed the international fee structure and made a change that better reflects how our customers bank with us.”
Customers should be aware this is the transaction fee charged by CBA, the bank cautioned in a release.
Overseas bank charges - which vary from country to country - could also apply, the bank warned.
An international transfer that take places over the counter will still incur the flat $30 fee.