Bank of America's exchange rate markup on wire transfers

Bank of America applies its own exchange rate to international wire transfers, which is different from the mid-market rate you see quoted online. The mid-market rate is what banks pay each other; Bank of America adds a markup on top of that rate, meaning you receive fewer foreign currency units per dollar sent than the published rate shows.

The exact markup percentage varies by currency pair, transfer amount, and account type. Bank of America does not publish a fixed markup table on its website. You can call Bank of America at 1-800-869-3557 or visit a branch to ask for the specific rate on your transfer before you send money, or you can initiate a wire transfer online and the rate will appear in the confirmation screen before you authorize the payment.

The markup is how Bank of America makes money on currency conversion. Other banks use similar markups, though the size of the markup differs between institutions. If you are sending a large amount, some banks may negotiate a better rate, but Bank of America does not typically do this for standard customers.

Key Takeaways

  • Bank of America's exchange rate includes a markup above the mid-market rate, so you will receive less foreign currency than you would at the true market rate.
  • The markup percentage is not published and changes based on the currency pair, the amount you are sending, and your account type.
  • You can see the exact rate Bank of America will use before you confirm the wire transfer, either by calling or by starting the transfer online.
  • The rate you see in the confirmation screen is the rate you will receive; Bank of America does not change it after you authorize the transfer.

How to find out your rate before sending money

The fastest way is to start the wire transfer online through your Bank of America account. Log in, select the international wire transfer option, enter the recipient's details and the amount, and the system will show you the exchange rate before you submit. You can then cancel without sending if the rate is not acceptable.

If you prefer to speak to someone, call Bank of America's international wire transfer line at 1-800-869-3557. A representative can quote you a rate over the phone. That rate is usually good for a short time — often 15 to 30 minutes — so you will need to complete the transfer quickly if you want to lock it in.

Do not rely on rates you see on financial websites or currency converters. Those show mid-market rates, not what Bank of America will actually charge you. The only rate that matters is the one Bank of America shows you in your transfer confirmation.

Why Bank of America's rate differs from what you see online

The mid-market exchange rate is the rate at which banks trade currencies with each other in large volumes. It changes constantly throughout the day. When you send money through Bank of America, you are not trading at that rate; you are paying Bank of America to handle the conversion and transfer for you.

Bank of America's markup covers its costs for processing the transfer, managing currency risk, and maintaining its foreign exchange operations. The markup also includes the bank's profit on the transaction. A typical markup ranges from 1% to 3% depending on the currency, but this is not a fixed rule and can be higher or lower.

If you compare Bank of America's rate to rates offered by online money transfer services like Wise or OFX, you may find those services offer a smaller markup. However, those services typically take longer to process and may have different fee structures, so the total cost is not always lower even if the exchange rate looks better.

Factors that affect your exchange rate

The currency pair matters most. Transfers to major currencies like the British pound, euro, or Canadian dollar usually have smaller markups than transfers to less commonly traded currencies. A wire to Mexico might have a different markup than a wire to Thailand, even though both go through the same Bank of America system.

The amount you are sending can also affect the rate. Some banks offer slightly better rates on larger transfers, though Bank of America's published policies do not specify at what amount this happens. Your account type — whether you have a basic checking account, a premium account, or a business account — may also influence the rate, but Bank of America does not disclose these tiers publicly.

The time of day and day of the week can matter because currency markets are more active during business hours in major financial centers. A transfer sent on a Friday afternoon may be processed at a different rate than one sent Monday morning, though the difference is usually small.

Fees separate from the exchange rate

Bank of America charges a separate wire transfer fee in addition to the exchange rate markup. For outgoing international wire transfers, Bank of America typically charges between $15 and $45 depending on whether you are sending to a Bank of America account or another bank. This fee is shown separately from the exchange rate in your confirmation.

The recipient's bank may also charge a receiving fee, which comes out of the money that arrives. This is not Bank of America's fee, but it reduces the amount the recipient gets. You can sometimes ask the recipient's bank in advance what their fee is, so you know the true cost of the transfer.

Some Bank of America accounts waive or reduce the outgoing wire fee. Check your account terms or call to confirm whether your account qualifies for any fee waivers.

How the rate is locked in

Once you see the exchange rate in the confirmation screen and authorize the transfer, that rate is locked. Bank of America will not change it even if the market rate moves before the transfer is processed. This protects you from rate swings, but it also means you cannot benefit if the rate moves in your favor after you send the money.

The transfer itself may take one to three business days to reach the recipient's bank, depending on the destination country and the receiving bank's processing speed. During that time, the exchange rate in the market may change, but your locked-in rate remains the same.

If you cancel the transfer before it is processed, you can start a new transfer and receive a new rate quote. Bank of America does not charge a cancellation fee for wires that have not yet left the bank, though some banks do, so confirm this before you cancel.

Comparing Bank of America to other options

Bank of America's exchange rate markup is typical for traditional banks, but it is usually higher than what online money transfer services charge. Services like Wise, OFX, and Remitly often advertise rates closer to mid-market, though they may have different processing times or minimum transfer amounts.

If you have a Bank of America account and are sending money occasionally, the convenience of using your existing bank may outweigh the cost of a slightly worse exchange rate. If you send money frequently or in large amounts, comparing quotes from online services could save you money over time.

Credit unions sometimes offer better exchange rates to their members than large banks do, so if you belong to a credit union, it is worth asking what rate they would charge before assuming Bank of America is your only option.

Frequently Asked Questions

Can I negotiate a better exchange rate with Bank of America?

Bank of America does not typically negotiate rates for individual customers on standard wire transfers. If you are a business customer sending very large amounts regularly, you may be able to discuss rates with a business banker, but this is not standard practice for personal accounts.

What happens if the exchange rate changes while my wire is being processed?

Your rate is locked the moment you authorize the transfer. The rate will not change during processing, even if the market rate moves significantly. This works in your favor if the rate moves against you, but you cannot benefit if it moves in your favor.

Is Bank of America's exchange rate the same for all currencies?

No. The markup varies by currency pair. Major currencies like the euro and pound sterling usually have smaller markups than less commonly traded currencies. The only way to know the exact rate for your specific transfer is to get a quote from Bank of America directly.

Do I pay the exchange rate markup if I wire money to another Bank of America account?

Yes. Even transfers between Bank of America accounts in different countries include an exchange rate markup. Bank of America treats these the same as transfers to other banks.

Can I lock in an exchange rate before I am ready to send the money?

Bank of America does not offer forward contracts or rate locks for individual customers. The rate is only locked when you authorize the transfer. If you want to know what rate you will receive, you can get a quote by phone or online, but that quote is only good for a limited time.