How much Canadian banks really charge

You're sending money to a supplier in Europe. The bank quotes you a "competitive" exchange rate. Sounds reasonable, right? But here's what they're not telling you: that "competitive" rate includes a markup that could be costing your business thousands of dollars annually. According to research, traditional bank transfers convert foreign currency using an exchange rate lower than the interbank rate, adding a markup fee of 1%-3% ¹. The bank may also charge an additional SWIFT charge on top of this hidden margin.

The hidden cost of "competitive" rates

When Canadian businesses make international transfers, they're often unaware of the true cost buried in exchange rates. Let's break down what actually happens when you send $10,000 CAD to a supplier overseas.

Understanding the markup game

Banks don't just charge transfer fees – they profit from the spread between the mid-market rate and the rate they offer you. Research shows that markup fees are charged on top of the exchange rate and are usually between 1%-3% ¹. This means on a $10,000 transfer, you could be losing $100 to $300 just in hidden exchange rate markups.

The situation gets worse with certain payment providers. PayPal usually charges between 3.5%-4.4% and a fixed currency conversion fee ¹. For perspective, if you receive an international payment of USD1000 through PayPal, you may end up receiving Rs76000-Rs78000, after adding all the markup and currency conversion fee, even though the live FX rate would have yielded Rs83000 ¹.

Real examples from major Canadian banks

CIBC's fee structure exposed

Let's examine CIBC's actual charges for international transactions. Outgoing wire payments of $10,000 or less cost $30.00 per payment ². But that's just the beginning. Outgoing wire payments of $10,000.01 – $50,000 cost $50.00 per payment, and payments greater than $50,000 cost $80.00 per payment ².

On the receiving end, incoming wire payments in Canadian and US currency cost $15.00 per payment, charged in the same currency as the incoming payment and deducted from the incoming payment amount ². For other currencies, incoming wire payments cost $15.00 CDN per payment, converted using an exchange rate set by CIBC on a date determined by CIBC ².

Need to investigate a payment issue? Wire payment investigation fees for recall, trace and amend cost $35.00 ². Made an error? The wire return fee is $35.00, deducted from incoming payment before funds are deposited into your account ².

RBC's business wire transfer costs

RBC business wire fees vary depending on the account/service used, with outgoing wire fees ranging from 15 CAD to 45 CAD, and incoming wire fees ranging from free to 17 CAD ³. The daily limit for RBC business wire transfers is up to 10,000 CAD ³.

What's particularly concerning is that exchange rates for RBC business wire transfers include a markup ³. This markup is applied on top of the wire transfer fees, creating a double charge that many businesses don't realize they're paying.

If you need to cancel or change a wire transfer, RBC charges a 25 CAD - 50 CAD fee, although cancellation isn't guaranteed once you submit your wire request ³.

The true impact on your business

Let's calculate the real cost of these hidden fees on typical business transactions:

Monthly international payments scenario

Consider a Canadian business making monthly payments of $50,000 to international suppliers:

Over a year, that's potentially $16,020 in hidden costs – money that could be invested back into your business growth.

The compound effect on cash flow

Research indicates that 46% of diaspora consumers across Europe regularly send money home, making it an essential financial activity comparable to paying rent or utilities ⁴. For businesses, the frequency is often even higher, with many making weekly or even daily international transactions.

When surveyed about their priorities, 65% of respondents rank speed as their top priority when choosing a payment method, while 44% are frustrated by poor exchange rates and 35% are frustrated by high or hidden fees ⁴.

Industry shifts exposing bank markups

The payments landscape is evolving rapidly, making traditional bank markups increasingly difficult to justify. Global payments revenues grew at 11% in 2022 to $2.2 trillion ⁵, with much of this growth coming from more transparent providers.

The transparency revolution

In the US, credit card fees are unregulated and can go up as high as 3.5% ⁵. This lack of regulation has created an environment where hidden fees flourish. However, new entrants are forcing transparency.

Merchants paid approximately $138 billion in processing fees in 2022 ⁵. As businesses become more aware of these costs, they're demanding better alternatives.

Technology driving change

The CHIPS network was successfully onboarded to ISO 20022 in April 2024, and the Fedwire Funds Service is set to migrate to ISO 20022 in March 2025 ⁶. These technological advances enable more efficient and transparent payment processing.

Swift Go was launched in early 2021 as a milestone for the cross-border payments space, focusing on lower-value payments up to 10,000 in Euro, USD and GBP ⁷. Over 660 banks have signed up for Swift Go across 139 countries, and 190 banks are now live ⁷.

How Airwallex eliminates hidden markups

While traditional banks continue to profit from opaque pricing, Airwallex offers market-leading FX rates on every transaction, big or small, with zero hidden fees ⁸. This transparent approach represents a fundamental shift in how businesses can manage international payments.

Transparent pricing model

Airwallex's approach is straightforward: you see the real exchange rate and pay a clear, minimal fee. Payments are made using Airwallex's local network to eliminate transaction fees and deliver your funds faster and in full ⁹.

The platform supports transfers to 150+ countries and regions, in 60+ currencies ¹⁰. This global reach means businesses can standardize their payment processes while maintaining cost transparency across all markets.

Speed without the premium

Funds are received quickly, securely, and in as little as one business day ¹¹. Compare this to traditional banks where RBC business wire transfers usually arrive on the same day for Canada or the US, and around 1 to 2 business days for other destinations ³ – but with significantly higher costs.

Payments through Airwallex can be received in as little as one business day with the full amount on delivery guaranteed ¹². This speed doesn't come with the premium pricing typical of expedited bank transfers.

Real businesses, real savings

RYSE transformed complex cross-border finances into streamlined, cost-saving, and efficient global operations with Airwallex ¹³. By eliminating hidden FX markups and reducing transfer fees, businesses like RYSE have redirected thousands of dollars back into growth initiatives.

The alternative to traditional banking

An Airwallex Global Account empowers your business to enhance its financial operations on the international stage. It's a modern alternative to a traditional business bank account, giving you the ability to open domestic and foreign currency accounts in minutes ¹³.

Common business bank charges in Canada include monthly maintenance fees, transaction fees, foreign exchange (FX) markups, and, in some cases, minimum balance penalties ¹⁴. By choosing transparent providers, businesses can eliminate many of these unnecessary costs.

Making the switch: What to consider

Calculate your true costs

Start by analyzing your current international payment costs. Include:

• Wire transfer fees (both sending and receiving)

• Exchange rate markups (compare quoted rates to mid-market rates)

• Investigation and amendment fees

• Monthly account maintenance fees related to international services

Evaluate transparency

Transparency level for traditional banks (SWIFT) is often hidden in the exchange rate, while modern providers offer full transparency ¹. Look for providers that clearly separate fees from exchange rates.

Consider integration needs

The digital payment market is expected to grow at a compound annual growth rate of 13.5% from 2024 to 2033 ¹⁵. Ensure your payment solution can scale with your business and integrate with your existing financial systems.

The future of business payments

The payment sector is undergoing massive transformation. By 2027, payments are forecast to make up 38% of all banking revenue ⁵. This growth is being driven by businesses demanding better value and transparency.

Emerging technologies reducing costs

PayPal announced Pay with Crypto at the end of July 2025, with a 0.99% transaction rate that will remain fixed until 31 July 2026 ¹⁶. This represents up to 90% cost reduction compared to credit card transactions ¹⁶.

Stablecoins enable near-instant global transfers, helping meet the G20's target of 75% of cross-border remittances arriving within one hour and the remainder within one business day by the end of 2027 ⁴.

Regulatory changes ahead

The regulatory environment for banks in the US payments industry has stabilized over the last couple of years ⁶. Similar changes in Canada could force greater transparency in FX pricing.

Take action on hidden fees

The evidence is clear: Canadian banks are charging significant markups on international transfers through opaque exchange rates and multiple fees. With outgoing wire payments costing up to $80.00 per payment at CIBC ² plus exchange rate markups of 1%-3% ¹, businesses are losing thousands annually.

The alternative is equally clear. Modern financial platforms offer transparent pricing, faster transfers, and significant cost savings. When 83% of SMEs and 76% of consumers say they would likely consider banks if they provided the same level of service and experience as fintech offerings ⁷, it's evident that change is overdue.

Don't let hidden markups erode your profits. Calculate your true international payment costs today and explore transparent alternatives that put your business first. The savings you uncover might surprise you – and fund your next phase of growth.

FAQ

What hidden fees do Canadian banks charge on international transfers?

Canadian banks typically add markups of 1-3% to exchange rates, though some can reach 3-5%. These markups are hidden within the "competitive" exchange rate they quote, meaning you're paying significantly more than the actual interbank rate without realizing it.

How much money can hidden bank fees cost my business annually?

Hidden bank fees can cost businesses thousands of dollars annually depending on transfer volume. For example, a 3% markup on $100,000 in annual international transfers would cost your business an extra $3,000 per year compared to using services with transparent, near-interbank rates.

What are the typical fees for wire transfers at major Canadian banks?

Major Canadian banks like RBC charge various fees for international wire transfers, including sending fees, receiving fees, and currency conversion markups. RBC business clients can send wire transfers in over 30 currencies, but the total cost includes both visible fees and hidden exchange rate markups.

How can I identify if my bank is charging hidden exchange rate markups?

Compare your bank's quoted exchange rate with the current interbank rate (available on financial websites). If there's a difference of 1-5%, that's the hidden markup. Also look for vague terms like "competitive rates" rather than transparent pricing that shows exact margins above interbank rates.

What are transparent alternatives to traditional bank transfers for businesses?

Modern fintech solutions like Airwallex offer transparent pricing with rates much closer to interbank rates and clear fee structures. These platforms typically charge lower, upfront fees rather than hiding costs in exchange rate markups, potentially saving businesses significant money on international transfers.

How do business account transfer services compare to traditional banking?

Business account transfer services often provide better exchange rates, lower fees, and more transparency than traditional banks. When comparing business bank accounts and transfer options, look for providers that offer near-interbank rates, clear fee structures, and faster processing times for international payments.

Citations

1. https://www.infinityapp.in/blog/understand-markup-fee-in-international-transactions

2. https://www.cibc.com/en/personal-banking/bank-accounts/additional-service-fees.html

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

4. https://www.thunes.com/news/top-growth-drivers-in-consumer-cross-border-payments/

5. https://www.merchantsavvy.co.uk/digital-payment-market/

6. https://www.form3.tech/news/payment-insights/key-us-payment-trends-in-2025-and-beyond-that-banks-need-to-be-aware-of

7. https://flow.db.com/cash-management/going-the-distance-with-swift-go

8. https://www.airwallex.com/ca/business-account/transfers/send-money-to-canada

9. https://www.airwallex.com/ca/business-account/transfers/send-money-to-bolivia

10. https://www.airwallex.com/ca/business-account/transfers/send-money-to-bulgaria

11. https://www.airwallex.com/ca/business-account/transfers/send-money-to-angola

12. https://www.airwallex.com/ca/business-account/transfers/send-money-to-lesotho

13. https://www.airwallex.com/ca/blog/what-is-an-airwallex-global-account

14. https://www.airwallex.com/ca/blog/bank-charges-canada

15. https://www.globenewswire.com/news-release/2025/05/28/3089198/0/en/Digital-Payment-Industry-Report-2025-Market-to-Hit-32-07-Trillion-by-2033-Government-Initiatives-Propel-Global-Shift-to-Cashless-Transactions.html

16. https://www.fxcintel.com/research/analysis/paypal-pay-with-crypto-card-fees