Santander international transfer fees: rates, caps, and workarounds

Key takeaways

• Santander charges £15-£25 per international transfer depending on how you send it, but the real cost lies in FX margins of 3-4% above mid-market rates—often exceeding the transfer fee itself.

• Correspondent bank deductions (typically £10-25 per transfer) and SHA fee structures mean recipients frequently receive significantly less than you sent, even after paying Santander's fees.

• Airwallex eliminates correspondent fees with direct clearing, offers interbank FX rates (0.3-0.8% spreads), and delivers transfers faster—saving businesses 60-70% on international payment costs compared to traditional banks.

Understanding Santander's international transfer costs

Santander is one of the UK's major high-street banks, making it a default choice for many businesses that want international transfer capabilities alongside their current account. The appeal is consolidation—one banking relationship handling both domestic and international payments.

But "convenient" doesn't mean "cost-effective." Santander's international transfer fees include not just headline charges of £15-£25, but substantial FX margins, correspondent bank deductions, and processing delays that make traditional bank transfers one of the most expensive ways to move money internationally.

This guide breaks down exactly what Santander charges for international business transfers, where hidden costs emerge, and when modern alternatives deliver dramatically better value. You'll learn the true cost of staying with traditional banking infrastructure versus purpose-built international payment platforms.

How Santander processes international transfers

Understanding how Santander moves money internationally explains why costs are high and why delays occur.

Santander uses the SWIFT network for most international transfers, routing payments through correspondent banking relationships. Your money doesn't go directly from Santander to the recipient's bank—it moves through multiple intermediary banks, each potentially deducting fees before the payment reaches its destination.

Santander offers international transfers through online banking, telephone banking, and in-branch. Each channel has different pricing, with branch-initiated transfers being most expensive. Business banking customers often have slightly different pricing than personal customers, though the fundamental cost structure remains similar.

The key limitation is that Santander, like most traditional banks, lacks direct clearing relationships in most foreign markets. This dependence on correspondent banking networks creates the fee layering and unpredictability that makes bank-to-bank international transfers expensive and unreliable for businesses.

Santander international transfer fees explained

Here's what Santander charges UK business customers for international transfers as of 2025:

Outgoing international transfer fees

Online or telephone banking: £15 per transfer. Branch-initiated transfers: £25 per transfer. These fees apply regardless of transfer amount—sending £100 or £100,000 costs the same headline fee.

Incoming international payment charges

Receiving foreign currency into your Santander account: £6-8 per payment depending on currency and payment method. This cost is often unexpected—you're charged just to receive money someone else sent you.

Fee caps and considerations

Santander's transfer fees are capped at the stated amounts, which sounds positive. However, this flat-rate structure means small transfers are disproportionately expensive. A £15 fee on a £500 transfer represents 3% before even accounting for FX margins—making Santander prohibitively expensive for regular low-value international payments.

Santander exchange rates and FX margins

This is where Santander's true cost becomes clear, and where they extract most profit from international transfers.

Santander doesn't offer mid-market (interbank) exchange rates. They apply a margin of 3-4% above the interbank rate, which they present as their "exchange rate" without explicitly itemizing the markup as a separate fee. This lack of transparency makes it difficult to calculate true total cost until after transactions complete.

Real cost example:

Sending £10,000 to EUR:

• Mid-market rate: 1.18 → €11,800

• Santander rate with 3.5% margin: 1.1389 → €11,389

• FX cost: €411 (£348)

• Transfer fee: £15

• Total cost: £363

That £348 FX cost dwarfs the £15 transfer fee. For businesses making regular international payments, FX margins represent 90%+ of Santander's total cost—yet these margins aren't clearly disclosed as separate charges, making comparison shopping difficult.

When FX is applied, costs compound. Santander applies their exchange rate plus their transfer fee plus potential correspondent bank deductions, creating a triple-layer cost structure where the FX component alone often exceeds 3% of transaction value.

Fee caps, limits, and thresholds to be aware of

Santander imposes several restrictions that affect international transfer usability:

Maximum transfer amounts typically cap at £50,000-100,000 per transaction depending on account type and verification status. For businesses making large international payments, this necessitates splitting payments across multiple transactions, multiplying fees.

Daily transfer limits may restrict total international payment volumes, requiring businesses to spread payments over multiple days. This creates working capital issues when paying time-sensitive international supplier invoices.

Minimum transfer amounts don't exist formally, but the £15 floor fee makes Santander economically unviable for transfers under approximately £5,000. Below that threshold, percentage costs become excessive even before accounting for FX margins.

Fee caps are fixed rather than percentage-based, which provides some cost predictability for very large transfers but makes Santander expensive for the small-to-moderate international payments most businesses actually make.

Additional and hidden charges in Santander transfers

Beyond Santander's direct fees, several hidden costs reduce amounts recipients actually receive:

Correspondent and intermediary bank fees

Every bank in the payment chain can deduct fees. Santander routes most international transfers through 1-3 correspondent banks, each potentially charging £10-25. These deductions occur automatically and aren't refunded even if you chose to pay "all charges."

OUR vs SHA vs BEN fee structures

When initiating transfers, you select who pays fees:

• OUR: You pay all charges (Santander's fee plus all correspondent fees). Most expensive but guarantees recipient gets full amount—except some destination banks charge receiving fees regardless.

• SHA: Shared charges. You pay Santander's £15-25, recipient's bank deducts their fees from the transfer. Most common option, resulting in recipients receiving £20-50 less than sent.

• BEN: Recipient pays all charges. Cheapest for you but significantly reduces amount recipient receives.

Most businesses use SHA by default, meaning despite paying Santander £15, your recipient still receives less than you sent due to correspondent deductions.

Charges beyond Santander's control

Some destination countries or banks impose mandatory receiving fees that apply even with OUR selection. Santander has limited visibility into or control over these charges, making final received amounts unpredictable even after you've paid Santander's fees.

How long do Santander international transfers take?

Speed is another area where Santander underperforms compared to modern alternatives.

Typical settlement times: 3-5 business days for major currencies (EUR, USD). Transfers to less common currencies or emerging markets can take 7-10 business days. This is significantly slower than specialized platforms that use direct clearing, which often deliver same-day or next-day. Learn more about typical international bank transfer timing.

Factors causing delays

Santander's cut-off times (typically 3-4pm UK time) mean transfers initiated later process the next business day. Compliance checks can hold payments without clear timelines, particularly for first-time recipients or certain countries. Each correspondent bank adds processing time—a payment routing through three intermediaries means three separate processing delays.

The unpredictability creates operational challenges for businesses making time-sensitive supplier payments or international payroll. While Santander may confirm they've sent the payment, you have limited visibility into where it sits in the correspondent banking chain or when it will actually arrive.

Real-world examples of Santander international transfer costs

Sending £5,000 GBP to EUR

• Transfer fee: £15

• Mid-market rate: 1.18 → €5,900

• Santander rate with 3.5% margin: 1.1389 → €5,694.50

• FX cost: €205.50 (£174)

• SHA correspondent deductions: ~€20

• Total cost: ~£189

• Recipient receives: ~€5,674.50

Sending £20,000 GBP to USD

• Transfer fee: £15

• Mid-market rate: 1.30 → $26,000

• Santander rate with 3.5% margin: 1.2545 → $25,090

• FX cost: $910 (£700)

• SHA correspondent deductions: ~$35

• Total cost: ~£715

• Recipient receives: ~$25,055

Receiving $5,000 international payment

• Incoming payment fee: £8

• Sender's correspondent deductions: ~$30 (before reaching Santander)

• Amount reaching your account: $4,970

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

• Total cost including FX: ~£69

Monthly overseas supplier payments (10 × £2,000)

• Transfer fees: 10 × £15 = £150

• FX costs at 3.5% margin: 10 × £70 = £700

• Correspondent deductions: ~£200

• Total monthly cost: ~£1,050

• Annual cost: ~£12,600

These examples demonstrate how Santander's costs compound at scale. A business making regular international payments—common for companies with overseas suppliers or contractors—pays thousands annually just in banking fees that purpose-built platforms largely eliminate.

When Santander international transfers make sense

Despite high costs, Santander remains appropriate in narrow scenarios.

Low-frequency payments might justify Santander if you make 1-2 international transfers yearly and value keeping everything within your existing banking relationship. The setup effort of opening specialist accounts might exceed savings for truly occasional use.

Businesses deeply integrated with Santander across multiple products (loans, merchant services, treasury) sometimes accept higher international transfer costs for consolidated relationship management and simpler reconciliation.

Santander makes sense only when relationship consolidation outweighs cost optimization, transfer frequency is genuinely minimal (under 5 annually), and recipient amount variability doesn't impact supplier relationships. For virtually every other business scenario, cheaper alternatives exist that deliver better service alongside lower costs.

Cheaper workarounds and alternatives to Santander

Several approaches reduce costs compared to Santander's traditional transfer structure:

Using local transfer rails

For Euro payments, platforms using SEPA instead of SWIFT eliminate correspondent fees and deliver transfers same-day. This fundamental infrastructure difference explains why modern platforms are both faster and cheaper than traditional banks.

Reducing FX exposure

Consider invoicing international customers in GBP when possible, letting them handle currency conversion. This shifts FX cost but may improve your pricing predictability. Alternatively, use multi-currency accounts to hold foreign currency revenue and pay foreign suppliers without conversion.

Specialist international payment providers

Platforms like Airwallex, Wise Business, and Currencycloud are built specifically for international payments, offering substantially better rates, faster delivery, and recipient amount guarantees Santander can't match. These aren't marginal improvements—they're fundamentally better infrastructure.

The trade-off between banks and specialist platforms isn't cost versus convenience—specialists are often more convenient too, with better tracking, faster delivery, and guaranteed recipient amounts. The choice is between expensive legacy infrastructure and modern purpose-built alternatives.

How Airwallex compares for international business transfers

Airwallex eliminates the structural inefficiencies that make bank transfers expensive and slow.

What Airwallex delivers that Santander doesn't:

• No transfer fees: Send unlimited international payments without per-transaction charges

• True interbank FX rates: 0.3-0.8% transparent spreads vs Santander's 3-4% hidden margins

• Direct clearing: No correspondent banks means no deductions or unpredictable recipient amounts

• Multi-currency accounts: Hold 23+ currencies and pay in local currency without conversion

• Same-day delivery: Most major corridors deliver same-day or next-day vs Santander's 3-5 days

• Guaranteed recipient amounts: Know exactly what arrives before confirming, unlike Santander's unpredictable correspondent deductions

Real savings for international business:

A business sending £50,000 monthly in international payments pays approximately £3,500 annually with Santander (£180 in transfer fees plus £3,320 in FX margins). The same volume through Airwallex typically costs £1,200-£1,500 (transparent FX spreads only), saving approximately £2,000-£2,300 annually.

For businesses with £100,000+ monthly international payment volume, annual savings versus Santander typically exceed £5,000. These aren't marginal improvements—Airwallex delivers 60-70% cost reduction alongside faster delivery and better service.

Airwallex makes sense for any business making more than 3-4 international transfers monthly, businesses with international suppliers or contractors requiring regular payment, companies tired of unpredictable recipient amounts and correspondent deductions, or those scaling internationally and needing proper multi-currency infrastructure.

Traditional banks like Santander were built for domestic banking with international capabilities as an afterthought. Airwallex is built specifically for international business, eliminating the correspondent banking inefficiencies that make traditional transfers expensive, slow, and unpredictable.

Conclusion

Santander offers international transfers as part of their broader business banking relationship, which provides consolidation benefits for some businesses. However, their fee structure—£15-£25 per transfer plus 3-4% FX margins plus correspondent deductions—makes them one of the most expensive ways to move money internationally.

For businesses making regular international payments, these costs compound significantly. What appears acceptable as an occasional expense becomes one of your largest variable costs at scale. The unpredictability of correspondent deductions and lack of FX rate transparency further complicate budgeting and supplier relationship management.

Modern payment infrastructure like Airwallex exists specifically because traditional bank transfers are expensive, slow, and opaque. The difference isn't marginal—it's fundamental. Purpose-built platforms eliminate the correspondent banking inefficiencies that create Santander's costs and deliver dramatically better service at a fraction of the price.

Ready to eliminate correspondent bank fees? Open an Airwallex account to access fee-free international transfers, true interbank FX rates, and direct clearing that guarantees recipient amounts.

FAQs

Are Santander international transfer fees tax-deductible for UK businesses?

Yes. International transfer fees and FX costs incurred for legitimate business purposes are generally tax-deductible as business expenses. Keep records of transfer receipts and ensure they're properly categorised in your accounting. However, "deductible" doesn't mean "free"—you're simply recovering a portion through reduced tax liability while still paying the full cost upfront. Reducing fees directly saves more than recovering a percentage through deductions.

Are Santander international transfers suitable for paying overseas suppliers regularly?

Not particularly. Santander's £15 per-transfer fees plus 3-4% FX margins plus correspondent deductions make them expensive for regular international payments. A business paying 10 international suppliers monthly spends £1,050+ monthly just in transfer costs versus £200-400 with specialist platforms. Additionally, unpredictable recipient amounts due to correspondent deductions can strain supplier relationships when they consistently receive less than invoiced.

How do Santander fee caps affect large international transfers?

Santander's flat £15-£25 fees mean large transfers (£50,000+) have lower percentage costs for transfer fees. However, FX margins of 3-4% still apply regardless of amount, meaning a £100,000 transfer costs £3,000-£4,000 in FX margins plus the £15-£25 fee. While the transfer fee percentage becomes negligible, FX costs remain substantial. For large regular transfers, negotiating better FX rates or using specialist platforms delivering near-interbank rates saves thousands per transfer.

How predictable are Santander international transfer fees month to month?

Transfer fees (£15-£25) are predictable. However, FX margins vary with exchange rate movements, making total cost less predictable. Correspondent bank deductions aren't disclosed upfront and vary by corridor, creating further unpredictability in what recipients actually receive. For businesses requiring predictable international payment costs, Santander's structure makes accurate budgeting difficult compared to platforms with transparent fee structures and guaranteed recipient amounts.