Can Amazon sellers save more on FX using Airwallex vs traditional banks?

Why FX costs eat into your Amazon margins

Foreign exchange fees silently drain profits from Amazon sellers every day. Whether you're shipping from Canada to US customers or collecting payments from European marketplaces, currency conversion costs compound quickly. Traditional banks typically charge 2% to 3.5% in hidden FX fees, which can quickly erode profit margins for businesses operating across borders.

The problem intensifies when sellers face double conversion traps. You receive USD from Amazon.com, convert to CAD for your Canadian bank account, then convert back to USD to pay suppliers. Each conversion chips away at your earnings. Meanwhile, Amazon's Currency Converter charges volume-based fees ranging from 0.75% to 1.5% depending on your annual cross-currency proceeds.

Key takeaways

• Traditional banks and Amazon's converter combine to take 3-4% of international revenue through FX fees

• Airwallex charges just 0.5-1% above interbank rates, potentially saving thousands annually

• Multi-currency accounts eliminate forced conversions and let you hold funds strategically

How Amazon and banks convert your money

Amazon Currency Converter for Sellers (ACCS) operates on a tiered system based on your annual cross-currency proceeds. High-volume sellers earning over $10 million pay 0.75%, while those under $500,000 face 1.5% fees. Amazon frames this as "investing in your growth" by rewarding higher proceeds with lower rates.

Beyond Amazon's cut, traditional banks add their own markup when you receive those funds. Banks typically add 2-3% markup on the interbank rate during conversion. This creates a double-hit scenario where Amazon takes its percentage, then your bank takes another slice when depositing funds.

The timing of conversions matters too. Currency rates fluctuate throughout trading days, and banks often apply less favorable rates during off-peak hours. Combined with processing delays, sellers lose control over when conversions happen, potentially missing favorable exchange windows.

What traditional banks really charge

Canadian banks structure their international transfer fees in layers that quickly accumulate. CIBC charges $30 for transfers up to $10,000, jumping to $50 for amounts between $10,000 and $50,000, and $80 for transfers exceeding $50,000.

RBC adds markup to exchange rates without transparent disclosure, meaning businesses get less favorable rates than the mid-market rate. The actual cost depends on your account type, destination country, and transfer method.

Beyond posted fees, hidden costs lurk in the fine print. Large retail banks charge 2.5-3.5% above interbank rates for currency conversion. Intermediary banks may deduct additional fees without notice, especially on SWIFT transfers. Non-Cash Rates are generally more favorable than Cash Rates at major banks, but even these "preferential" rates include substantial markups.

Processing times add indirect costs through cash flow delays. While domestic transfers clear same-day, international wires typically take 1-3 business days, with some requiring longer lead times for foreign currency conversions.

How Airwallex flips the FX script

Airwallex disrupts traditional banking's FX model through transparent pricing and modern infrastructure. The platform offers like-for-like settlement in 14+ currencies, meaning you receive and hold payments in their original currency without forced conversions. This eliminates the double-conversion trap that costs sellers thousands annually.

Instead of hidden markups, Airwallex charges a clear 0.5-1% above interbank rates. Multi-currency accounts let you hold USD from US sales, EUR from European markets, and GBP from UK customers – all without conversion until you choose the optimal moment.

The infrastructure difference shows in speed. You can set target exchange rates and convert when markets hit your preferred levels, providing cost certainty for future transactions. Local payment rails mean funds arrive within one day in over 120 countries, compared to traditional SWIFT transfers taking multiple days.

Case study – Dalstrong saves CAD 40,000 a year

Dalstrong, an Amazon-native kitchenware brand, transformed its FX operations by switching to Airwallex. The company eliminated Amazon's 2.5% FX fee by receiving payments directly into Airwallex multi-currency accounts. Combined with avoiding bank conversion markups, Dalstrong now saves $40,000 annually on Amazon collections costs alone. The time savings proved equally valuable – FX transaction processing dropped from six hours to just two hours weekly, freeing the finance team for strategic work rather than manual reconciliation.

Crunching the numbers: bank vs Airwallex

Consider a typical scenario: you receive a US$500,000 Amazon payout that needs conversion to CAD. Through traditional banks, the costs cascade quickly.

Airwallex charges 0.5-1% above interbank rates, translating to US$2,500-5,000 on that $500,000 transfer. Compare this to traditional banks adding 2.5-3.5% markup, costing US$12,500-17,500 for the same transaction. The difference: US$10,000-12,500 saved per major payout.

Bank exchange rate markups average 3%, while wire fees add another layer. For high-value transfers, banks charge up to $80 per transaction, plus potential intermediary fees. These fixed costs hit harder on frequent smaller payouts.

Airwallex eliminates several fee categories entirely. No monthly account maintenance fees if you maintain minimum balances. No forced conversion fees when holding multiple currencies. Preventing double conversion saves 2-3% minimum compared to the standard bank route.

Amazon's ACCS charges tiered fees: 0.75% for cross-currency proceeds above $10 million, 1% for $1 million to $10 million, 1.25% for $500,000 to $1 million, and 1.5% for proceeds under $500,000. Combined with bank fees, sellers lose 3.5-5% of international revenue to conversions. Airwallex's all-in cost stays under 1.5%, even for smaller sellers.

Five steps to capture FX savings today

Transitioning from traditional banking to Airwallex follows a straightforward path that most sellers complete within days.

First, open your Airwallex Global Account online. The platform supports businesses registered in Hong Kong, Singapore, Australia, and the US, with instant activation for qualified businesses. You'll receive local account details for multiple currencies immediately upon approval.

Second, update your Amazon Seller Central banking information. Navigate to your disbursement settings and add your new Airwallex account details for each marketplace. Processing currencies include AUD, USD, EUR, GBP, CAD and 18 other major currencies.

Third, configure your multi-currency strategy. Hold funds in their original currency to avoid immediate conversion. Time your exchanges when rates favor your needs, not when Amazon or banks force the transaction.

Fourth, set up target exchange rates for predictable costs. Monitor market rates and convert when they reach your preferred levels for supplier payments or operational expenses. This eliminates rate uncertainty from your financial planning.

Fifth, integrate payment workflows. Connect your accounting software, automate supplier payments, and streamline reconciliation. Funds generally arrive in one to five business days depending on the destination, faster than traditional wire transfers.

How Airwallex stacks up against Wise, Payoneer and banks

The fintech landscape offers multiple alternatives to traditional banking, each with distinct strengths and limitations for Amazon sellers.

Wise Business charges a one-time AUD 65 fee for its multi-currency account supporting 23 currencies. While Wise offers transparent mid-market rates, it lacks the comprehensive business features Amazon sellers need. Wise provides competitive foreign exchange rates based on the mid-market rate, typically charging 0.35-0.6% in fees.

Payoneer targets marketplace sellers but supports fewer currencies – just 9+ compared to Airwallex's 20+. The platform focuses on freelancer payments rather than comprehensive business financial operations. Monthly fees and limited local payment methods restrict its utility for scaling Amazon businesses.

Traditional banks maintain advantages in relationship banking and credit facilities. However, Checkout.com processes in 150+ currencies with in-country acquiring, while banks struggle with modern payment infrastructure. Banks excel at large credit lines but fall short on transparent FX pricing.

Airwallex combines competitive pricing with business-focused features. Unlike Wise's consumer origins or Payoneer's freelancer focus, Airwallex built specifically for international business operations. The platform's low fees averaging 0.35%-0.6% compare favorably to higher bank spreads, while offering more payment methods and currencies than specialized competitors.

The bottom line

Foreign exchange fees represent one of the largest controllable costs for Amazon sellers operating internationally. Traditional banks and Amazon's converter together result in 3-5% of cross-border revenue going to conversion costs through various fees and unfavorable rates.

Airwallex fundamentally changes this equation. Competitive FX rates without exorbitant fees mean sellers keep more of their hard-earned revenue. Like-for-like settlement in 14+ currencies eliminates forced conversions. Transparent pricing replaces hidden markups.

The numbers speak clearly: Dalstrong's CAD 40,000 annual savings from eliminating Amazon's 2.5% fee demonstrates the immediate impact. For sellers processing $500,000 annually, switching from traditional banks saves $10,000-15,000 per year. These aren't theoretical calculations – they're real savings flowing directly to your bottom line.

Every day you delay switching costs money. Traditional banks won't voluntarily reduce their margins. Amazon won't lower ACCS fees. Taking control of your FX strategy through Airwallex puts thousands back in your business, funding growth instead of bank profits.

Ready to stop overpaying on foreign exchange? Open your Airwallex account today and join thousands of Amazon sellers who've already made the switch. Your first international transfer will show exactly how much you've been leaving on the table.

FAQ

What FX fees does Amazon ACCS charge?

Amazon Currency Converter for Sellers uses tiered fees from 0.75% to 1.5% based on annual cross-currency proceeds: 0.75% above 10 million dollars, 1% for 1–10 million, 1.25% for 500,000–1 million, and 1.5% under 500,000 (https://sell.amazon.ca/cad-usd-currency-converter). These fees apply when Amazon disburses in a currency different from your bank account.

How much do traditional banks typically add in FX markups and fees?

Many banks add roughly 2–3.5% to the interbank rate for currency conversion, plus wire fees that can range from 30 to 80 Canadian dollars at CIBC depending on amount (https://exiap.ca/guides/cibc-international-transfer). RBC also applies exchange rate markups rather than the mid-market rate, which raises total costs (https://wise.com/ca/blog/rbc-business-wire-transfer-guide; https://exiap.ca/guides/best-banks-for-international-money-transfers).

How does Airwallex pricing compare to banks for FX?

Airwallex often quotes 0.5–1% above the interbank rate for many corridors with transparent pricing shown before you convert, while banks commonly add materially higher spreads (https://www.airwallex.com/ca/business-account/transfers/send-money-to-mayotte). Actual fees vary by region, currency, and payment method, so check your in-app quote for an exact rate.

How does Airwallex help Amazon sellers avoid double currency conversion?

You can receive like-for-like settlements into multi-currency global accounts, hold balances in USD, EUR, GBP, CAD and more, then convert only when you choose (https://airwallex.com/au/stripe-fee-calculator). This prevents the double conversion trap that can add 2–3% in extra costs to payouts and supplier payments (https://airwallex.com/us/blog/avoid-double-currency-conversion).

Is there proof of savings from switching to Airwallex?

Yes. Dalstrong, an Amazon-native brand, reports saving about 40,000 Canadian dollars per year on Amazon collections after switching to Airwallex, and cut weekly FX processing time from six hours to two (https://www.airwallex.com/case-studies/dalstrong). Results vary by volume, currencies, and workflow.

How do I connect Airwallex to Amazon Seller Central and which currencies are supported?

After your Airwallex account is approved, add the local account details to Seller Central disbursement settings for each marketplace. Supported processing currencies include AUD, USD, EUR, GBP, CAD and more, with availability depending on your entity and region (https://www.airwallex.com/docs/global-treasury__market-and-infrastructure-coverage; https://www.airwallex.com/docs/payments__global__airwallex-pay).

Citations

1. https://www.airwallex.com/ca/business-account/transfers/send-money-to-mayotte

2. https://sell.amazon.ca/cad-usd-currency-converter

3. https://wise.com/ca/blog/business-wire-transfer-free-canada

4. https://exiap.ca/guides/cibc-international-transfer

5. https://wise.com/ca/blog/rbc-business-wire-transfer-guide

6. https://www.rbcroyalbank.com/business/day-to-day/foreign-exchange/rates.html

7. https://airwallex.com/au/stripe-fee-calculator

8. https://corporatealliance.com/blog/airwallex/understanding-airwallex-fees-a-transparent-2025-breakdown/

9. https://www.airwallex.com/case-studies/dalstrong

10. https://exiap.ca/guides/best-banks-for-international-money-transfers

11. https://airwallex.com/us/blog/avoid-double-currency-conversion

12. https://www.airwallex.com/docs/global-treasury__market-and-infrastructure-coverage

13. https://www.airwallex.com/docs/payments__global__airwallex-pay

14. https://www.worldfirst.com/au/insight/business-banking-insights/airwallex-alternatives/

15. https://airwallex.com/us/blog/wise-alternatives-and-competitors

16. https://www.trustradius.com/products/airwallex/competitors