HSBC international payment fees: charges, rates, and alternatives

Key takeaways

• HSBC charges £4-£10 for outgoing international transfers depending on how you send them, but the real cost lies in FX margins that can add 2-4% to each transaction.

• Hidden charges from correspondent banks, intermediary fees, and payment routing options (OUR, SHA, BEN) can significantly reduce the amount your recipient actually receives.

• Airwallex offers transparent pricing with interbank FX rates and multi-currency accounts, helping businesses save substantially on regular international payments compared to traditional banks.

Understanding HSBC's international payment costs

HSBC is one of the world's largest international banks, so it makes sense that many UK businesses use them for cross-border payments. The bank offers global reach and familiar banking infrastructure, which provides a certain level of comfort.

But "familiar" doesn't always mean cost-effective. Many businesses discover that HSBC's international payment fees—when you factor in exchange rate margins, intermediary charges, and various payment options—add up to significantly more than the advertised transfer fee.

This guide breaks down exactly what HSBC charges for international payments, where hidden costs appear, and how to work out your real total cost. You'll learn which fees to watch for and discover when it makes sense to explore alternatives.

How HSBC international payments work

Before diving into costs, it's worth understanding how HSBC actually moves money internationally.

HSBC offers several types of international payments: Global Transfers for sending money to HSBC accounts worldwide (often faster and sometimes cheaper), standard international payments to any bank globally via the SWIFT network, Global Money Account for holding and transferring multiple currencies (available for some account types), and traditional telegraphic transfers typically initiated in branch.

How the money moves

When you send an international payment through HSBC, your money doesn't go directly from your account to the recipient. Instead, it moves through your HSBC account (where the initial fee is charged), HSBC's internal network (if sending to another HSBC account), correspondent banks (intermediaries that facilitate the transfer), and finally the recipient's bank (which may also charge fees).

This multi-step process creates multiple opportunities for fees to be deducted. Even if HSBC only charges you £4, your recipient might receive considerably less than you sent due to intermediary deductions.

Online vs branch differences

How you initiate the payment affects both cost and speed. Online and app-based transfers are typically cheaper and faster than branch-initiated payments. Business customers using HSBCnet (HSBC's business banking platform) get different pricing and features compared to retail customers.

HSBC international payment fees explained

Here's what HSBC charges for basic international transfers:

Outgoing international payments (as of 2025):

• Online/mobile banking: £4 per transfer

• Branch or phone: £10 per transfer

• Global Transfers (to HSBC accounts): Often £0, but check your specific account terms

Incoming international payments:

• Receiving foreign currency: £8 per payment

• Receiving GBP from abroad: £6 per payment

• Some business accounts may have different rates

Personal vs business accounts

Business account holders often get slightly different pricing structures. If you're making regular international payments, HSBC may offer negotiated rates or volume-based pricing, though this typically requires significant monthly volumes.

The fee structure challenge

That £4 fee sounds reasonable. But it's just the starting point. The real cost comes from what happens to the money as it moves through the banking system—which we'll break down in the next sections.

HSBC exchange rates and FX margins

This is where the actual cost of international payments becomes clear.

HSBC, like most traditional banks, doesn't offer you the mid-market exchange rate (the "real" rate you see on Google or financial news sites). Instead, they apply a margin on top of the interbank rate, which becomes their profit on currency conversion. This margin typically ranges from 2-4% depending on the currency pair, the amount you're sending, your account type, and current market conditions.

Real cost example

Say you're sending £10,000 to EUR:

• Mid-market rate: 1.18 (£10,000 = €11,800)

• HSBC rate with 3% margin: 1.1446 (£10,000 = €11,446)

• Cost of FX margin: €354 (£300)

That £300 FX cost dwarfs the £4 transfer fee. This is why FX margins represent the largest hidden cost in international banking.

When FX fees apply

You're charged FX margins whenever you send money in a currency different from your account currency, receive money that needs converting, use a payment card abroad, or withdraw cash in foreign currency.

For businesses making regular international payments, these margins compound quickly. A business sending £50,000 monthly could be paying £1,500+ just in FX margins, on top of transfer fees.

Additional and hidden costs to watch for

Beyond HSBC's direct fees, several other charges can reduce the final amount your recipient receives.

Correspondent and intermediary bank fees

When HSBC routes your payment through other banks (which happens frequently), those intermediary banks can deduct their own fees—typically £10-£25 per transaction. HSBC doesn't always control or even know these fees in advance.

OUR vs SHA vs BEN payment options

When sending international payments, you'll choose who pays the fees. With OUR, you pay all fees (yours, intermediaries, recipient's bank)—the most expensive but guarantees your recipient gets the full amount. SHA means you split fees: you pay HSBC's fee while your recipient pays their bank's fees and any intermediary charges. This is the most common option. BEN means your recipient pays everything—cheapest for you but they receive significantly less.

Most businesses use SHA by default, which means your recipient might receive £20-£40 less than you sent, even after you paid the £4 HSBC fee.

Charges outside HSBC's control

Even if you choose OUR, some banks in certain countries charge receiving fees that can't be waived. Countries with less developed banking infrastructure or strict capital controls often have these unavoidable charges. Additionally, some currencies can't be sent directly—HSBC might convert GBP → USD → final currency, applying FX margins twice. This particularly affects emerging market currencies.

How long do HSBC international payments take?

Speed matters, especially for time-sensitive business payments.

Global Transfers from HSBC to HSBC are often instant or same-day. Standard international payments take 1-4 business days, while payments to emerging markets need 3-7 business days or longer. Branch-initiated transfers add 1-2 days to processing time.

Several factors cause delays: anti-money laundering and sanctions screening can hold payments, payments in some currencies only process during specific market hours, each correspondent bank adds processing time, payments initiated on Friday might not arrive until the following week, and incorrect account numbers, SWIFT codes, or beneficiary information cause rejections and delays.

Speed vs cost consideration

HSBC's traditional banking infrastructure means payments take longer than modern fintech alternatives. While you might save money compared to express services, the delay can create working capital issues for businesses with tight cash flow. If you need to pay an overseas supplier quickly or your recipient needs funds urgently, that 3-4 day wait might cost you more in operational terms than the fee savings.

HSBC international fees for businesses vs individuals

Business account holders face different considerations.

Business customers using HSBCnet or HSBC Business Banking may get higher transaction limits, batch payment processing, integration with accounting software, and potentially negotiated rates for high volumes. However, many SMEs using standard business current accounts pay the same fees as personal customers—£4 online, £10 in branch—without any volume discounts unless they're moving substantial amounts monthly.

Volume discounts and negotiated rates

HSBC typically negotiates custom pricing for businesses with £100,000+ monthly international payment volume, long-standing banking relationships, or multiple HSBC products (loans, foreign exchange dealing, etc.). For SMEs below these thresholds, standard published rates apply.

Business customers benefit from better transaction reporting through HSBCnet, which helps with accounting reconciliation. However, tracking the true cost of each payment (including FX margins and intermediary fees) still requires manual work, as these aren't always clearly shown on statements.

When HSBC suits corporate needs

HSBC makes sense for businesses that already bank primarily with HSBC and value consolidated banking, make infrequent international payments where total fees are less important, need traditional banking support for regulatory or relationship reasons, or send to HSBC recipients regularly (lower fees via Global Transfers).

Real-world examples of HSBC international payment costs

Let's look at what you'd actually pay in common scenarios:

Example 1: Sending £5,000 GBP to EUR

• Transfer fee: £4

• Mid-market rate: 1.18 → €5,900

• HSBC rate with 3% margin: 1.1446 → €5,723

• FX cost: €177 (£150)

• Intermediary fees (SHA): ~€15

• Total cost: ~£167

• Recipient receives: ~€5,708

Example 2: Sending £10,000 GBP to USD

• Transfer fee: £4

• Mid-market rate: 1.30 → $13,000

• HSBC rate with 2.5% margin: 1.2675 → $12,675

• FX cost: $325 (£250)

• Intermediary fees (SHA): ~$25

• Total cost: ~£258

• Recipient receives: ~$12,650

Example 3: Receiving $5,000 international payment

• Incoming payment fee: £8

• Sender's intermediary fees: ~$30 (deducted before reaching HSBC)

• Amount reaching your account: $4,970

• Converted to GBP at HSBC rate: ~£3,785 (vs £3,846 at mid-market)

• Total cost including FX: ~£69

Example 4: Monthly overseas supplier payments

A business paying an EU supplier £20,000 monthly:

• Monthly transfer fees: £4 × 12 = £48/year

• FX costs at 3% margin: £600 × 12 = £7,200/year

• Intermediary fees: ~£180/year

• Total annual cost: ~£7,428

This example shows why FX margins, not transfer fees, represent the real cost for businesses with regular international payment needs.

HSBC international payment fees compared to alternatives

HSBC vs other UK banks

Most traditional UK banks (Barclays, NatWest, Lloyds) operate similarly to HSBC with comparable transfer fees (£4-£10 online), similar FX margins (2-4%), the same correspondent banking networks, and equivalent processing times. The differences between traditional banks are minimal. You might save £2-£4 on transfer fees, but you'll face similar FX margins and intermediary charges regardless of which high street bank you use.

HSBC vs specialist payment providers

Modern international payment methods and providers like Wise, Currencycloud, and Airwallex work differently. They offer near mid-market exchange rates (0.3-0.8% margins vs 2-4%), fewer intermediaries (direct clearing where possible), faster settlement (often same-day or next-day), transparent fee structures, and usually no incoming payment fees.

Cost transparency comparison

Traditional banks, including HSBC, show you the transfer fee upfront but the FX rate and intermediary fees are less visible. You often don't know the true total cost until after the payment completes. Specialist providers typically show you the exact amount your recipient will receive before you confirm the payment, making cost comparison much easier.

Trade-offs to consider

Traditional banks offer familiar relationships and support, integration with your existing banking, branch access if you prefer in-person service, and potentially easier accounting (same bank statement). Specialist providers offer significantly lower costs (especially on FX), faster settlement, better transparency, and modern APIs and integration.

For businesses focused on cost efficiency and speed, specialists typically win. For those prioritizing banking relationship consolidation or who make very infrequent international payments, traditional banks remain viable.

When HSBC international payments make sense

Despite higher costs, there are scenarios where HSBC is still appropriate.

If you make 1-2 international payments yearly, the effort of setting up and managing an alternative provider might not be worth the savings. Some businesses value having all banking consolidated with one provider, especially if they have loans, foreign exchange dealing, or other products with HSBC. If your recipient also banks with HSBC, Global Transfers can be instant and fee-free or very low cost, which actually makes HSBC competitive for those specific routes.

Certain industries or jurisdictions require traditional banking relationships. In these cases, the cost of using HSBC might be unavoidable. And for large businesses where a 3% FX margin on international payments represents a small percentage of overall operating costs, the convenience of keeping payments with their primary bank might outweigh the savings elsewhere.

However, for most SMEs and growing businesses making regular international payments, the cumulative cost of HSBC's fees and FX margins creates a strong case for exploring alternatives.

How Airwallex compares as an alternative for international payments

Airwallex takes a fundamentally different approach to international payments, designed specifically for businesses with global operations.

Airwallex offers FX rates at or very close to the mid-market rate, with margins typically 0.3-0.8% (compared to HSBC's 2-4%). For a business sending £50,000 monthly, this difference saves approximately £1,500/month or £18,000 annually.

Faster settlement with fewer intermediaries

Airwallex uses local clearing networks and direct relationships, which means fewer correspondent banks involved, faster arrival times (often same-day), fewer intermediary fees deducted, and more predictable payment timing.

Multi-currency accounts and local collection

Unlike HSBC's single-currency accounts (or limited multi-currency options), Airwallex lets you hold and transact in 23+ currencies, provides local account details for major markets (UK, US, EU, AU, etc.), allows you to collect payments like a local business, and charges no incoming payment fees. This means your international clients can pay you via local bank transfers, avoiding their own international payment fees and making you more competitive.

When Airwallex is more cost-effective than HSBC

You'll benefit most from Airwallex when you make regular international payments (weekly or monthly), FX costs represent a significant expense line, you need multi-currency capabilities, speed and predictability matter for your operations, you want transparent upfront pricing, or you're scaling internationally and need global infrastructure.

Airwallex isn't trying to replace your entire business banking relationship. Many businesses keep their HSBC account for local operations and use Airwallex specifically for international payments and multi-currency management—getting the best of both worlds.

Conclusion

HSBC offers global reach and the comfort of traditional banking for international payments. For businesses with established HSBC relationships or very infrequent international transfers, this familiarity has value.

But, for most businesses making regular cross-border payments, HSBC's combination of transfer fees, FX margins, and intermediary charges creates substantial costs. The £4 online fee is just the tip of the iceberg—FX margins of 2-4% and correspondent bank deductions are where the real expense lives.

Understanding your true total cost requires looking beyond the advertised transfer fee. Calculate your effective rate including FX margins, factor in intermediary deductions, and consider the impact of processing delays on your operations.

For growing businesses with regular international payment needs, modern alternatives like Airwallex often deliver significant savings—not just in direct costs, but in time, transparency, and operational efficiency.

Ready to reduce your international payment costs? Open an Airwallex account to access transparent pricing, interbank FX rates, and multi-currency accounts built for global business.

FAQs

Does HSBC charge intermediary or correspondent bank fees?

HSBC charges their own transfer fee (£4-£10), but intermediary and correspondent banks in the payment chain may also deduct fees, typically £10-£25 per transaction. These fees are outside HSBC's control and are often deducted automatically. Choosing the "OUR" payment option means you pay all fees upfront, though some receiving banks may still charge unavoidable fees.

Are HSBC international payment fees negotiable for businesses?

Yes, but typically only for businesses with significant payment volumes (usually £100,000+ monthly) or those with multiple HSBC products and services. Standard SME business accounts generally pay the same published rates as personal customers. If you're making regular large-value international payments, it's worth speaking with your HSBC business manager about custom pricing.

How long do HSBC international business payments usually take?

Standard international payments through HSBC take 1-4 business days, though payments to emerging markets can take 3-7 days or longer. HSBC-to-HSBC Global Transfers are often instant or same-day. Processing times depend on currency, destination country, compliance checks, and whether payments are initiated during banking hours. Branch-initiated transfers typically take 1-2 days longer than online payments.

When should a business consider alternatives to HSBC for international payments?

Consider alternatives when you're making regular international payments (weekly or monthly), FX margins are eating into your margins, you need faster settlement times, or you want more transparent pricing. Businesses with significant international revenue or expenses, those scaling globally, or companies needing multi-currency accounts typically benefit most from specialist providers. However, if you make only occasional international payments, HSBC's convenience might outweigh the cost savings elsewhere.