Bank of America's exchange rate markup on international wires
Bank of America applies a markup to the mid-market exchange rate when you send money internationally by wire. The mid-market rate is what you see on financial websites — the rate banks trade with each other at. Bank of America's actual rate for your wire is less favorable, meaning you receive fewer foreign currency units per dollar sent.
The markup amount varies by currency pair and changes daily. Bank of America does not publish a fixed percentage or formula. When you initiate a wire transfer, the bank shows you the specific rate it will use before you confirm the transaction, so you can see the exact markup for that day and currency combination.
This markup is how Bank of America makes money on currency conversion. It is separate from any wire transfer fee you may also pay. Both the exchange rate markup and the wire fee reduce the amount the recipient gets.
Key Takeaways
- Bank of America adds a markup to the mid-market exchange rate on every international wire, meaning the rate you receive is worse than the rate banks trade at with each other.
- The markup percentage is not fixed and varies by currency, so the same wire to different countries will have different markups applied.
- You see the exact rate and markup amount before you confirm the wire, displayed in the transaction review screen.
- The exchange rate markup is charged in addition to any wire transfer fee, so both reduce what the recipient receives.
Where to find the exchange rate before you send
When you initiate an international wire through Bank of America's website or mobile app, the rate calculation appears in the transaction review step. This is after you enter the recipient's details and the amount but before you authorize the transfer. The screen shows the amount in US dollars you are sending, the exchange rate being applied, and the amount in foreign currency the recipient will receive.
If you are sending the wire in person at a Bank of America branch, the teller will provide the rate in writing before processing the transaction. You can ask the teller to show you the mid-market rate for comparison, though they may not have that information when ready available.
The rate shown is locked in only after you complete the transaction. If you close the browser or app before confirming, you will need to start over and may see a different rate if the market has moved.
How the markup compares to other banks and transfer services
Bank of America's markup on currency conversion is typically higher than what you would pay at a currency specialist or online transfer service. Traditional banks like Bank of America, Wells Fargo, and Chase generally mark up exchange rates by 1 to 3 percent or more, depending on the currency. Online services like Wise, OFX, and Remitly often charge lower markups, sometimes under 1 percent, though they may have higher minimum transfer amounts or longer delivery times.
The tradeoff is speed and convenience. A Bank of America wire typically arrives within one to two business days for major currencies and destinations. Specialist services may take three to five business days, though some offer faster options for an additional fee. If you have a Bank of America account and need the money to arrive quickly, the higher markup may be worth it to you. If you have time and want to minimize the cost of conversion, comparing rates at other providers before sending can save money.
You cannot negotiate Bank of America's exchange rate markup. The rate the bank shows you is the rate available for that transaction at that moment. Calling the bank or visiting a branch will not change the markup.
Factors that affect the exchange rate you receive
The currency pair matters most. Wires to countries with major currencies — the UK, Canada, Japan, Australia, and the eurozone — typically have smaller markups because those currencies trade in high volume and Bank of America can convert them cheaply. Wires to smaller or emerging-market currencies — such as the Philippine peso, Thai baht, or Brazilian real — usually have larger markups because the bank faces more risk and less liquidity in those conversions.
The time of day and day of the week also affect the rate. Exchange rates move constantly during market hours. If you send a wire during US business hours on a weekday, you see a rate based on live market conditions. If you send it after hours or on a weekend, the rate is based on the previous close or the next market open, and may be less favorable. Holidays also affect rates because currency markets are closed.
The amount you are sending does not change the markup percentage, but very large wires sometimes may have access to for better rates if you contact the bank's international services team in advance. This is not standard and requires asking.
What happens to the exchange rate between when you send and when it arrives
The exchange rate you see when you send the wire is the rate that will be used for that transaction. It does not change while the wire is in transit. If the market rate moves significantly between when you send and when the recipient's bank receives the funds, that does not affect your wire — the conversion already happened at the rate you agreed to.
The recipient receives the foreign currency amount shown in your transaction confirmation, regardless of what the market does in the meantime. This is different from some online transfer services, which may lock in a rate for 24 or 48 hours before you send, allowing you to shop around. Bank of America locks in the rate only when you authorize the transaction.
Fees separate from the exchange rate markup
Bank of America charges a wire transfer fee in addition to the exchange rate markup. The outgoing wire fee for international transfers is typically $15 to $45 depending on whether you are a regular customer, a premium customer, or using a business account. Some Bank of America accounts waive the wire fee if you maintain a minimum balance or have direct deposit set up.
The recipient's bank may also charge a fee to receive the wire. This fee comes out of the amount the recipient gets, not out of your pocket. Bank of America cannot control this fee because it is set by the recipient's bank in their country. If you want to know what the recipient will actually receive, ask them what their bank charges for incoming international wires, then subtract that from the amount shown in your Bank of America transaction review.
How to minimize the cost of sending money internationally
Before sending through Bank of America, check the exchange rate and total cost (rate markup plus wire fee) against at least one other provider. Wise, OFX, and Remitly all show their rates and fees upfront without requiring you to create an account first. If you are sending a large amount or sending regularly, the difference in markup can add up quickly.
If you use Bank of America, send during US business hours on a weekday to get the best available rate. Avoid sending after hours or on weekends when rates are stale. For very large wires, call Bank of America's international services line and ask if a better rate is available — sometimes it is, though this is not may provide.
If the recipient is in a country with a major currency and you have time, consider opening an account at a currency specialist or online transfer service. Many have no monthly fees and charge significantly less to convert and send money than Bank of America does.
Frequently Asked Questions
Can I lock in an exchange rate before I send the wire?
No. Bank of America shows you the rate only when you are ready to send, and the rate is locked in the moment you authorize the transaction. You cannot reserve a rate in advance or ask the bank to hold a rate for you while you decide.
Why is Bank of America's exchange rate worse than the mid-market rate?
The markup is how the bank makes money on currency conversion. Banks buy and sell currency at wholesale rates (the mid-market rate) and resell it to customers at a higher cost. The difference is the bank's profit on the transaction.
Does the exchange rate markup change if I send more money?
The percentage markup typically stays the same regardless of amount. However, very large wires — usually $100,000 or more — may may have access to for better rates if you contact the bank's international services team directly. This is not automatic and requires asking.
What if the recipient's bank charges a fee to receive the wire?
That fee reduces what the recipient gets. Bank of America cannot control fees charged by banks in other countries. Ask your recipient what their bank charges for incoming international wires, then subtract that amount from what Bank of America says they will receive.
Is the exchange rate the same at a Bank of America branch as online?
The rate should be the same whether you send online or in person, because both use the same real-time market data. However, a branch teller may not be able to show you the exact rate until you are ready to send, while the online system shows it during the review step.