How Bank of America sets exchange rates on wire transfers

Bank of America applies an exchange rate to every wire transfer you send to another country, and that rate is not the same as the mid-market rate you see on financial news sites. The bank builds in a margin — the difference between what it pays for the foreign currency and what it charges you — and that margin is how it makes money on the transaction.

The exact rate you get depends on the currency pair, the amount you're sending, and whether you're a regular customer or new to international transfers. Bank of America does not publish its exchange rates in advance, so you won't know the precise number until you initiate the transfer or get a quote. The rate can also shift between the time you start the transfer and the time it settles, which usually takes one to three business days.

You can request a rate quote before you commit to sending money. Bank of America will hold that quote for a limited time — typically 24 to 48 hours — so you can decide whether to proceed. If you don't send the money within that window, you'll need to request a new quote and may receive a different rate.

Key Takeaways

  • Bank of America's exchange rate includes a margin above the mid-market rate, which is the bank's profit on the transaction.
  • You can request a rate quote before sending money, and the bank will hold it for 24 to 48 hours while you decide.
  • The rate you receive depends on the currency, the amount, and your account type, and it may change between when you start and when the transfer settles.
  • Comparing Bank of America's rate to other banks or money transfer services can save you money on larger transfers, since the margin varies by provider.

What the margin means for your transfer cost

The margin — sometimes called the spread — is the percentage difference between the mid-market rate and the rate Bank of America charges you. On a $5,000 transfer to Europe, a margin of 2 to 3 percent means you lose $100 to $150 to the exchange rate alone, before any wire fees. On larger amounts or less common currency pairs, the margin can be higher.

Bank of America does not disclose its margin publicly, and it varies. Customers with higher balances or frequent international activity may receive better rates than those sending money once or twice a year. Business accounts sometimes get different rates than personal accounts. The only way to know what you'll actually pay is to request a quote for your specific transfer.

The margin is separate from the wire fee. Bank of America charges a domestic wire fee (usually $15 to $30) and an international wire fee (usually $15 to $45), depending on whether you're sending or receiving and whether the wire is outgoing or incoming. The exchange rate margin is applied on top of those fees.

How to get a rate quote from Bank of America

Log into your Bank of America online banking account or call the international wire team at the number on the back of your debit or credit card. Tell them the destination country, the currency, and the amount you want to send. They will provide a quote that includes the exchange rate, the wire fee, and the total amount that will be deducted from your account.

Write down the quote number and the expiration time. If you decide to proceed, you can authorize the transfer over the phone or online, depending on your account setup and the amount. Once you authorize it, the rate is locked in at the quoted level, even if the market rate moves before the transfer settles.

If you don't send the money within the quote window, you'll need to call back or log in again and request a new quote. Market rates move constantly, so the new quote may be better or worse than the first one.

Comparing Bank of America to other providers

Bank of America's exchange rate margin is typically wider than that of dedicated money transfer services like Wise, OFX, or Remitly, especially on common currency pairs like USD to EUR or GBP. For a $10,000 transfer, you might pay $200 to $300 more at Bank of America than at a specialist provider, depending on the destination and currency.

However, Bank of America has advantages if you already bank there: you can initiate the transfer from your existing account without setting up a new service, and the money comes from a familiar interface. If you send money infrequently or in small amounts, the convenience may outweigh the higher cost. If you send regularly or in large amounts, comparing quotes from two or three other providers takes 15 minutes and can save hundreds of dollars per year.

Some employers and payroll services also offer international transfer options at rates that differ from both Bank of America and independent money transfer companies. If you're sending money for work or receiving a salary from abroad, check whether your employer has a preferred provider.

When the rate changes between quote and settlement

Bank of America locks in the rate once you authorize the transfer, so the rate you see in your quote will not change. However, the settlement process — the actual movement of money from your account to the recipient's bank — can take one to three business days. During that time, the mid-market rate may move significantly, but that does not affect what you pay, because your rate is already locked.

The recipient may see a different amount arrive than they expected if their bank applies its own exchange rate when converting the funds into their local currency. This is rare with major currencies and established banks, but it can happen with smaller banks or less common currency pairs. Ask the recipient's bank in advance whether they will apply an additional conversion.

Fees beyond the exchange rate

Bank of America charges a wire fee in addition to the exchange rate margin. An outgoing international wire typically costs $15 to $45, depending on whether it's a standard wire or an expedited wire. Some accounts waive wire fees if you maintain a minimum balance or have a premium account type.

The recipient's bank may also charge a fee to receive the wire, typically $10 to $25. That fee is deducted from the amount the recipient receives, not added to what you send. If you want the recipient to receive a specific amount, you need to add the receiving bank's fee to your transfer amount, or ask Bank of America to cover it (which some banks will do, though it increases your cost).

International wire transfers also sometimes pass through intermediary banks, especially if the destination country does not have a direct relationship with Bank of America. Each intermediary bank may charge a fee, usually $10 to $15. Bank of America can tell you whether intermediary fees apply to your specific destination.

How to reduce your exchange rate cost

Request quotes from at least two providers before you send money. The difference in exchange rates between Bank of America and a money transfer service can be substantial enough to justify the five minutes it takes to get a competing quote. Write down the total cost from each provider — exchange margin plus all fees — not just the exchange rate.

If you send money regularly to the same country, consider opening an account with a dedicated money transfer service. Many offer better rates on repeat transfers to the same recipient, and some allow you to lock in a rate for a set period. Bank of America is convenient if you're already a customer, but it is rarely the cheapest option for frequent international transfers.

For very large transfers — $50,000 or more — call Bank of America's international banking team directly rather than using the online quote tool. Large transfers sometimes may have access to for better rates or fee waivers that are not available through standard channels.

Frequently Asked Questions

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

Yes. Bank of America will provide a rate quote and hold it for 24 to 48 hours. Once you authorize the transfer, the rate is locked in, even if the market rate moves before the money settles. If you don't send the money within the quote window, you'll need to request a new quote.

Why is Bank of America's exchange rate worse than what I see online?

The rate you see online is the mid-market rate — the rate banks pay each other. Bank of America charges you a margin above that rate, which is how it makes money on the transaction. The margin varies by currency pair and customer type, but it's typically 2 to 3 percent on common currencies.

Does Bank of America charge a fee in addition to the exchange rate?

Yes. Bank of America charges a wire fee (usually $15 to $45 for international wires) plus the exchange rate margin. The recipient's bank may also charge a receiving fee, which is deducted from the amount they receive. Ask Bank of America for the total cost before you authorize the transfer.

How long does it take for the money to arrive after I send it?

Most international wire transfers settle in one to three business days, depending on the destination country and the receiving bank. Bank of America locks in your exchange rate when you authorize the transfer, so market movements during the settlement period do not affect what you pay.

Is there a minimum or maximum amount I can wire internationally?

Bank of America does not publish standard minimums or maximums, but very large transfers ($100,000 or more) may require approval or a call to the international banking team. Very small transfers (under $100) may not be worth the fee. Contact Bank of America directly to confirm limits for your specific transfer.