Bank of America's exchange rate is not the mid-market rate you see online

When you wire money internationally through Bank of America, the exchange rate you receive is higher than the rate quoted on financial websites. Bank of America adds a markup — sometimes called a spread — to the mid-market rate (the rate banks trade with each other). This markup is how the bank makes money on currency conversion. The exact percentage varies by currency pair, the amount you're sending, and current market conditions.

You won't see the markup listed as a separate line item on your receipt. Instead, Bank of America shows you the final rate after the markup is already built in. This means the amount your recipient gets in their home currency will be less than if you could exchange at the mid-market rate yourself.

The markup typically ranges from 1% to 3% above the mid-market rate, though it can be higher for less common currency pairs or smaller transfers. Bank of America does not publish its exact markup percentages publicly, so you have to ask the bank directly or compare the rate they quote you against the mid-market rate for that day.

Key Takeaways

  • Bank of America's wire transfer exchange rate includes a markup above the mid-market rate, which you can only see by comparing their quoted rate against the published mid-market rate for that currency pair.
  • The markup typically ranges from 1% to 3% but varies by currency, transfer amount, and market conditions.
  • You can call Bank of America's international wire department or visit a branch to get a rate quote before you commit to sending money.
  • Other banks and money transfer services often offer lower markups, so comparing rates across providers can save you money on larger transfers.

How to find out what rate Bank of America will give you

Call Bank of America's wire transfer line or visit a branch in person and tell them the currency pair, the amount you're sending, and the destination country. Ask them to quote you the exchange rate they will use. Write down the exact rate and the date and time you received it, because rates change throughout the day.

Then look up the mid-market rate for that same currency pair on that same date. You can find mid-market rates on financial websites like XE.com, OANDA, or Google Finance (search "USD to [currency]"). Subtract the mid-market rate from the Bank of America rate. The difference is the markup you're paying.

For example, if the mid-market rate for USD to GBP is 0.7900 and Bank of America quotes you 0.7650, you're paying a markup of 0.0250 or about 3.16%. On a $10,000 transfer, that 3.16% difference means your recipient gets roughly $316 less than they would at the mid-market rate.

Why Bank of America's rate may be higher than other providers

Bank of America is a full-service bank, which means it handles the entire wire transfer process itself — compliance checks, regulatory reporting, customer service, and currency conversion. Those costs are built into the markup. Smaller money transfer companies like Wise (formerly TransferWise) or OFX often charge lower markups because they specialize only in international transfers and use different technology to reduce overhead.

The size of your transfer also affects the rate. Larger transfers sometimes may have access to for better rates because the bank's cost per dollar is lower. If you're sending $50,000 or more, it's worth asking Bank of America whether they can improve the rate. Smaller transfers — under $5,000 — typically get the standard markup with no negotiation.

Bank of America also charges a separate wire transfer fee (usually $15 to $45 depending on whether the wire is domestic or international), which is separate from the exchange rate markup. That fee is disclosed upfront and does not change based on the amount or currency.

When Bank of America's rate might be competitive

Bank of America's exchange rate is most competitive when you need the wire to arrive the same day or the next business day. If speed is your priority, the convenience of using your existing bank account may outweigh the higher markup. International wires through Bank of America typically arrive within one to two business days, depending on the destination country and time of day you send it.

Bank of America's rate can also be reasonable if you're sending money to a country where other providers have limited coverage or higher fees. Some smaller money transfer services don't serve all countries, or they charge premium rates for certain destinations. If your recipient's country is not well-served by cheaper alternatives, Bank of America may be your most practical option.

How to compare Bank of America against other providers

Get a rate quote from Bank of America, then get quotes from at least two other providers — Wise, OFX, MoneyGram, or Western Union are common alternatives. Ask each provider for the exact amount your recipient will receive in their local currency, including all fees and the exchange rate. Do not compare exchange rates alone; compare the final amount received, because different providers structure their fees differently.

Write down the final amount from each provider and the total time to delivery. On a $5,000 transfer, a difference of 2% between providers means $100 in your recipient's pocket. On a $20,000 transfer, that same 2% difference is $400. For transfers under $1,000, the fee structure matters more than the exchange rate, so focus on total cost instead.

Keep in mind that exchange rates change constantly — sometimes multiple times per hour during market hours. A quote is usually valid for only 10 to 30 minutes, so if you're comparing providers, get all your quotes within a short window of time.

What happens if the exchange rate moves between when you lock in and when the money arrives

When you send a wire through Bank of America, the exchange rate is locked in at the moment you authorize the transfer. If the rate moves after that — even if it moves in your favor — you do not benefit. The rate you were quoted is the rate you get, regardless of what happens in the market over the next one or two business days.

Some money transfer services offer the option to lock in a rate for a longer period (24 hours to a week) at no extra cost, which can be useful if you're waiting for funds to clear or coordinating with your recipient. Bank of America does not typically offer this option for standard wire transfers, though you can ask whether it's available for your specific situation.

Frequently Asked Questions

Can I negotiate Bank of America's exchange rate?

For very large transfers ($50,000 or more), you can ask a Bank of America representative whether they can improve the rate. For smaller transfers, the rate is typically fixed and not negotiable. Calling the international wire department and asking directly is your only option.

Does Bank of America charge a fee on top of the exchange rate markup?

Yes. Bank of America charges a separate wire transfer fee ($15 to $45 for international wires) that is listed separately from the exchange rate. The fee and the markup are two different costs.

What if I send money to a country Bank of America doesn't serve?

Bank of America can send wires to most countries, but some destinations may have restrictions or require additional documentation. Call the international wire department with your destination country and they will tell you whether they can send there and what the process requires.

Is the exchange rate the same if I wire from my phone app versus a branch?

The exchange rate should be the same regardless of how you initiate the wire, but the fee structure may differ. Wiring through the mobile app sometimes has a lower fee than going to a branch. Always confirm the total cost (fee plus exchange rate impact) before you send.

How long does it take to know the final amount my recipient will get?

Bank of America will tell you the final amount in the recipient's currency before you authorize the transfer. The exchange rate is locked in at that moment, so you know exactly what your recipient will receive before the money leaves your account.