Australian bank for international transactions. Australia based dropshippers.

[Maxventure]

Hi guys!

I make international payments through NAB and pay international transfer fees on top of a not great USD/AUD exchange these days. Is it the same with any bank in Australia? Do they all charge those?

What bank in Australia would you recommend to minimize transfer fees?

I'm using a business account and debit card.

Thank you!

 

[Direct Webstore]

Why are you "transferring" money and who are you transferring it to?

I'm in Australia and use both a NAB and ANZ debit card to pay for products from Aliexpress sellers and do not pay any exhorbitant charges. There is no "bank to bank money transfer" involved. Just a normal credit/debit card transaction like everyone else does.

I also mainly target the U.S and pay Aliexpress sellers and sell to customers in U.S dollars. I don't even bother thinking about the Aussie dollar and/or exchange rates. It's irelevant.

 

[Maxventure]

Why are you "transferring" money and who are you transferring it to?

I'm in Australia and use both a NAB and ANZ debit card to pay for products from Aliexpress sellers and do not pay any exhorbitant charges. There is no "bank to bank money transfer" involved. Just a normal credit/debit card transaction like everyone else does.

I also mainly target the U.S and pay Aliexpress sellers and sell to customers in U.S dollars. I don't even bother thinking about the Aussie dollar and/or exchange rates. It's irelevant.

I was recently paying for my domain, hosting, Shortpixel on AppSumo, Elementor etc. Every time I pay NAB charges me an overseas transfer fee, like it would be AUD 5 for a AUD 70 transfer for example.

 

[Direct Webstore]

No one else has this problem. Most people pay for those things via normal credit/debit card transactions. I have no idea what kind if account you have set up with NAB ... but it's not a normal fee free one like mine and others. You need to do a little research before doing things.

 

[Maxventure]

No one else has this problem. Most people pay for those things via normal credit/debit card transactions. I have no idea what kind if account you have set up with NAB ... but it's not a normal fee free one like mine and others. You need to do a little research before doing things.

It's just a business account, business debit card with NAB.

 

[Direct Webstore]

I'd just use a normal savings account with a debit card if I was you. That's what I use. No fees at all, except for very minor ones occasionally.

 

[Maxventure]

I'd just use a normal savings account with a debit card if I was you. That's what I use. No fees at all, except for very minor ones occasionally.

Yeah, guess I'll have to try another personal one. Just want to keep business expenses separate.
That's what they just wrote to me though. Looks like it doesn't matter - business or personal. Are you sure you were never charged those fees or are you not using Visa? Obviously, Aliexpress is overseas.

"Those are international transaction fees and are charged when either the merchant is based overseas, or the payment is processed overseas. The fee is charged at 3% of the AUD amount spent.
The fees are associated with the Visa card and are charged on all Visa cards with NAB. You may want to contact these companies and find out where they are based or how they are processing the funds. If they are processing these overseas, then a fee is passed onto NAB which is then passed on to the account holder for the purchase."

 

[Direct Webstore]

I'm using a VISA debit card from both NAB and ANZ. Mostly I use the ANZ for purchases with Aliexpress. Stripe payments go to the NAB. Occasionally I use The NAB for purcheases too. I don't get charged 3% per transaction on either of them.

 

[Maxventure]

I'm using a VISA debit card from both NAB and ANZ. Mostly I use the ANZ for purchases with Aliexpress. Stripe payments go to the NAB. Occasionally I use The NAB for purcheases too. I don't get charged 3% per transaction on either of them.

Thanks mate. I don't know where the issue is, I'll just try using a personal then.

 

[mustscience]

TransferWise is now offering their Borderless account for Australians. You can receive and keep money in AUD and send it to where you need it. Should be much cheaper than what your regular bank is charging.

They have both personal and business accounts. I think the best way to go about it, is to first create a personal account and then a business account.

 

[Direct Webstore]

TransferWise is now offering their Borderless account for Australians.

I don't trust these new little startups. Especially ones that need affiliates to SPAM for them on forums. (With the link disguised)
I'm sticking to Stripe. A big, well established and trustworthy company. All Aussies can use Stripe with no problem.

 

[Maxventure]

TransferWise is now offering their Borderless account for Australians. You can receive and keep money in AUD and send it to where you need it. Should be much cheaper than what your regular bank is charging.

They have both personal and business accounts. I think the best way to go about it, is to first create a personal account and then a business account.

I use TransferWise for personal. I don't think it's convenient to use them to pay to suppliers if you have multiple orders. I may try it. But I agree Stripe is the best so far for convenience.
I found that all Australian banks charge international transactions fees like 3%, people probabably don't even notice that. The only way to avoid those is a business account in HSBC but you gotta have a turnover like 5 mil or CITI and it's 250K
So basically we have to pay around 6% just for transactions...2.9+30c Stripe + 3% transaction fees.

 

[mustscience]

(1) Maybe I misunderstood the question, but wasn't the goal to find a replacement for a bank? Transferwise and Stripe do something completely different, and you can't replace Transferwise by Stripe.

(2) @Direct Webstore: The "new little startup" Transferwise is valued at 3.5b$, has 4 million customers, and is now the most valuable fintech in Europe. Don't worry, you'll do better next time. ✌

 

[Direct Webstore]

(1) Maybe I misunderstood the question, but wasn't the goal to find a replacement for a bank?

No. Just a different bank with lower fees.

The "new little startup" Transferwise is valued at 3.5b$, has 4 million customers,

... and relies on affiliates to SPAM for them. No thanks. I wouldn't deal with any financial institution that relies on affiliates. Too tacky and low class. Plus, 4 million customers is a pretty small customer base for an international financial institution. But it seems to have impressed you though.

Don't worry, you'll do better next time.

Thanks (for the snide sarcasm) ... and I hope you do a better job at disguising your affiliate links next time.
HINT: Don't disguise them at all. Honesty is the best policy. You'll get a much better reception.

 

[Direct Webstore]

I found that all Australian banks charge international transactions fees like 3%, people probably don't even notice that.

Like I discussed with you before, I don't get that 3% transaction fee with my Personal ANZ account, but I am using a VISA "Debit" card, not a "Credit" card ... maybe that's why.

I do get the Stripe charges of course, but because of the low overheads and large profit margins with drop-shipping, they're not really noticeable.

 

[Maxventure]

Like I discussed with you before, I don't get that 3% transaction fee with my Personal ANZ account, but I am using a VISA "Debit" card, not a "Credit" card ... maybe that's why.

I use a debit card as well. I'm not sure whether you track your expenses at all but that's what ANZ states on their website:
Overseas transaction fee
(see note 6)
ANZ will charge 3% of the value of any
International Transaction charged or credited to
your ANZ account
It may not always be clear to you when use of
your ANZ account is an International Transaction,
for example where the merchant or financial
institution processing a charge or credit is located
outside of Australia.
For the purpose of the Overseas Transaction
Fee, an International Transaction is any purchase
(including a purchase of items directly convertible
to Australian currency cash), cash withdrawal or
credit (including a refund or reversal in respect of a
purchase) processed to your ANZ account:
• In a currency other than Australian currency; or
• Where the merchant or financial institution
accepting or processing the transaction, credit,
refund or reversal is outside of Australia; or
• Which is considered by Visa to require conversion
into Australian currency (for example, where the
transaction, credit, refund or reversal is submitted
on behalf of a merchant to a financial institution
by an intermediary that is outside of Australia).

Also, that's what they privately told me:
"Yes we do have 3% transaction fee when you use your card overseas or with overseas merchant. Please refer to the following website for fees involved - https://www.anz.com.au/content/dam/anzcomau/documents/pdf/personal-account-fees-charges.pdf.

 

[Direct Webstore]

Nope. Not for me. I checked my statements. It's also a "Pensioner Advantage (Savings) Account" ... maybe that's it. Although I wasn't a real pensioner when I opened it 3 years ago ... I was just on the dole at the time.

 

[Maxventure]

Ah tha

Nope. Not for me. I checked my statements. It's also a "Pensioner Advantage (Savings) Account" ... maybe that's it. Although I wasn't a real pensioner when I opened it 3 years ago ... I was just on the dole at the time.

Ah that explains it then, not for a regular person. Anyways, will have to take those 3% into consideration, no way to avoid it. Question closed