Understanding international payment fees (and how to minimise them)

Richard Nugent, Private Dealing Team Leader

Rich Nugent

Private Dealing Team Leader with 6+ years of expertise in international payments, ensuring smooth, transparent transfers for clients of all sizes.

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When sending money abroad, it’s not just the exchange rate you need to think about – international transfer fees can significantly impact the total cost of your payment.

While domestic transfers are often free or low-cost, international payments can include bank handling charges, intermediary fees, and receiving bank fees, depending on how and where you send your money.

At Lumon, we believe your money should go further. That’s why we don’t charge transfer fees, and why our specialists work with you to navigate the common costs charged by other banks and payment providers, so you can keep more of your payment in your pocket.

What influences international transfer fees?

Many high-street banks and payment providers charge international transfer fees. These can vary depending on:

The provider you use (bank, fintech, or specialist provider)

The destination and currency of your transfer

The payment method (e.g. online, in-person, or via app)

How quickly you want the funds to arrive

Wondering what these fees might look like? To give a few examples, as of September 2025:

Barclays charge up to £25 for international payments made in a branch

NatWest charge up to £15 per transaction, whether online or in branch

HSBC charge up to £17, depending on the transfer method

Naturally, these charges can add up quickly. This is especially true if you make regular international payments for things like a mortgage for a property abroad or bringing over your pension.

The three main types of international payment fees

It’s key to understand where your money is going when you make an international transfer. The main types of fees to be aware of are:

1. Transfer fees

These are upfront charges applied by the sender’s bank or provider for processing the international transaction. Think of them as the ‘admin’ cost of moving your money across borders.

2. Receiving fees

Some banks or financial institutions on the receiving end may charge a fee to process incoming international payments. This means the person you’re paying could receive less than expected, something to bear in mind particularly if you’re paying for services or invoices.

3. Hidden fees

These are typically the hardest to spot. For example, some providers build extra costs like transfer fees into the exchange rate itself, offering a weaker rate than the real market rate. This might not be labelled as a ‘fee,’ but it can mean you get less foreign currency for your money.

You might also run into fees like currency conversion, compliance or admin fees, which can impact the cost of your transfer.

Say goodbye to transfer fees with Lumon

Working with a currency specialist like Lumon means you can keep fees to a minimum and make the most of every payment you make:

Lumon is transparent about costs. We don’t add hidden transfer fees, so you’ll know what you’re paying upfront.

You gain access to competitive exchange rates, which helps your money goes further.

Dedicated support is a given. Your account manager is on hand to support you, answer questions, and provide insights on products like forward contracts, which can be particularly useful for larger international transfers.