TransferWise targets ‘fake rate’ currency transfers offered by banks
Money exchange service TransferWise has launched a campaign aimed at highlighting the high hidden commissions taken by big banks in overseas transfers.
The campaign against “fake rates” sees individuals working on behalf of TransferWise tweeting the major institutions to ask about charges to transfer money.
After the banks responded by sharing details of the transfer fee, but not revealing the big difference between the rates they buy and sell currency for, the TransferWise tweeters then followed up with messages suggesting the banks were “dodgy” or hiding things.
The company created a website www.banfakerates.com.au which highlights how much money can be lost when transferring money through a bank.
The website encourages people to tweet their banks and ask “How much does it cost to send $1000” to another country with the hashtag #askyourbank and #banfakerates.
In an open letter posted to TransferWise’s blog, Taavet Hinirkus, co-founder and chairman of the company, said: “By hiding their charges in fake exchange rates, banks are able to make claims they offer “low fees” or “no commission.
“These practices aren’t transparent and hide important decision-making information from customers.
“Australians deserve a fair go and should get the real exchange rate when making an international money transfer.
“Banks and brokers should end their deceptive practices by using the real exchange rate and transparently tell customers the real cost of transferring money abroad.”
I like Transferwise and I agree the markups on FX/ transfers by the big banks is a ripoff – but calling them fake is a step too far and may well see the company end up in court. Those rates, bad as they may be, are called a profit margin, there’s nothing actually “fake” about them.
User ID not verified.
I agree, ask TW what their fee is and they can’t tell you since they’ll need to know how much you are transferring as the fee is actually a % of the amount (a profit margin) same stuff different name
User ID not verified.