International Transfer Reversal Fee of over $120AUD?

cheepo on 30/11/2024 - 15:08
Last edited 30/11/2024 - 17:11 by 2 other users

I recently transferred over $800AUD to an overseas family account.

I selected the amount to be transferred in Euros and it was to an account which I have successfully transferred in the past to via the Westpac banking app. I select their local currency and not in Australia dollars to save on further international fees when the funds reach but am advised prior to each transfer that an amount of 3.65EUR is charged by the receiving bank (approximately $6AUD). I have found that sometimes it's a few dollars more based on what I been told.

On the most recent occasion, I was advised by family that the account was now closed and incidentally, funds were reversed back into my account 9 days after I made the transfer but minus a difference of over $120AUD! I have contacted Westpac who are claiming that the amount deposited is all that's been received by the corresponding bank and the rest they have charged to initiate the reversal.

I understand that international transactions are processed manually and don't automatically bounce back unlike when transferring to local accounts (via BSB and account number) but hoping somebody can shed some light on what I can do? Has anybody else has experienced the same or similar when making an international transfer.

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Westpac

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  MS Paint on 30/11/2024 - 15:12

  Fees and conversion rate differences?

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    cheepo on 30/11/2024 - 15:25

    I expected there to be a discrepancy from fees and conversion rates but even so, the exchange rate did not fluctuate that much from the time of the transfer to the deposit back in to my account. It was just over a week.

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      GordonD on 30/11/2024 - 17:01

      conversion rate differences

      This, at least in part.

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  freefall101 on 30/11/2024 - 15:54

  If the other bank has charged the fee then you need to look under the laws in that country to solve it. If they're allowed to charge whatever they like then you're out of luck.

  Unless your family had overdrawn that closed account or something and they took it to cover that.

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    cheepo on 30/11/2024 - 16:07

    I didn't ever consider that the recipient account may have been overdrawn but will ask. Good thinking.

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  AustriaBargain on 30/11/2024 - 15:56

  It was transferred to an American bank and into American dollars, then back again to an Australian bank and back into Australian dollars? That's quite a journey for your $800.

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    try2bhelpful on 30/11/2024 - 16:02

    American bank fees can be steep but this seems to be OTT. Maybe contact the remote bank directly and get confirmation of their fees when an account bounces.

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    cheepo on 30/11/2024 - 16:06

    +1

    European Bank and in Euros.

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      AustriaBargain on 30/11/2024 - 16:15

      +1

      Aye, you're right.

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      try2bhelpful on 30/11/2024 - 16:15

      +1

      I would still contact the other bank to find out costs directly.

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  surfingedge on 01/12/2024 - 18:43

  Next time use Wise. There shouldn't be any fees if it's a SEPA transfer. Wise charges a small loading on the exchange rate to convert AUD to euros.

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    cheepo on 03/12/2024 - 14:32

    Thanks - I'll look into Wise as I already have an account. I don't mind paying some fees, but the payment failed on this occasion and fees were more than if the payment was successful.