How much is your bank charging on international payments?

A transfer fee is a separate charge for sending the payment. It may be fixed, depend on the payment method or vary with the destination. Ask whether it is added to the amount you pay or deducted from what the recipient receives. Other banks involved in the route may also charge, so check whether your supplier will receive the full invoice amount.

The exchange-rate margin is the difference between the rate offered to you and a comparable reference rate. It is reflected in the currency conversion rather than necessarily appearing as a separate fee. A payment advertised without a transfer fee can still have a rate margin. Equally, a quoted transfer fee tells you nothing on its own about whether the exchange rate is competitive.

A mid-market rate is a reference between market buying and selling rates. It is not a promise of an executable business rate. Rates move, published references may be delayed and payment services have costs. Compare quotations taken close together for the same currency pair, amount, settlement date and payment route.

For a quote expressed as foreign currency per £1, subtract your offered rate from a comparable reference rate. Divide that difference by the reference rate, then multiply by 100 to express it as a percentage. This estimates the shortfall relative to that reference. It is not a universal measure of every cost and should not be applied unchanged to a quote expressed the other way round.

Hypothetical example only: suppose a reference rate is €1.2000 for £1, and your provider quotes €1.1760 for £1 at the same time. The difference is €0.0240 per pound. Dividing 0.0240 by 1.2000 and multiplying by 100 gives 2%. These made-up rates illustrate the calculation; they are not current market rates or a claim about any bank.

If you convert a hypothetical £10,000, the reference calculation gives €12,000 and the quoted rate gives €11,760, before separate fees. The €240 difference illustrates the effect of the rate on the currency received. It is not a guaranteed saving you could achieve elsewhere. If a £15 transfer fee is added, your total sterling outlay would be £10,015 under that assumed fee arrangement.

For an invoice requiring an exact euro amount, ask each provider for the total sterling cost of delivering that amount instead. That avoids comparing quotes with different recipient amounts. Save the quote time, rate, fees and payment terms. If your statement shows a historic conversion, use a reference from that time rather than today's rate.

Ask for answers in writing where possible. A good comparison includes the final amount received and the support available if something goes wrong, not just an attractive rate on a screen. If your payments are irregular or your invoice amount changes, explain that before discussing any future currency arrangement.

• Rates: what rate applies to this amount, when does the quote expire and how is the rate set?
• Fees: are there transfer, account, receiving or intermediary charges, and who pays them?
• Forward contracts: are they available to this business, and what deposits, extra funds or cancellation costs could apply?
• Payment speed: what are the cut-off times, expected arrival times and possible reasons for delay?
• Named contact: will you have someone to speak to about documents, beneficiary changes or a delayed payment?
• Recipient amount: can the provider confirm what your supplier should receive and explain any uncertainty?

Neither category is automatically cheaper or better for every business. Your existing bank may be convenient because your business account is already there. A specialist may offer different payment tools or more direct currency support. Actual availability depends on the individual provider and your application, not the label it uses.

Use the table as a comparison checklist rather than a recommendation. Verify the legal entity providing the service on the FCA Register and ask how your funds are protected. Authorisation does not mean every product carries the same protection. In particular, safeguarding arrangements for payment firms are not the same as deposit protection for an eligible bank deposit.

Zentra starts with your business and payment needs: the currencies you use, typical amounts and where you send or receive money. A compliance professional checks the fit with a provider's written requirements before a proposed introduction. You can then ask that provider about rates, charges, service and terms. We share your details only with your agreement.

The introduction is free for businesses, but we do not promise a saving or a particular rate. Zentra does not provide foreign exchange or payment services, hold client money or give financial advice, and is not FCA-authorised. The provider decides whether to accept your business and explains its own terms. Use a like-for-like quote to decide whether its service works for you.