How Much Are You Really Paying to Spend, Send, and Withdraw Money Abroad?

If you run an online business, manage a remote team, or simply travel often, you probably move money across borders more than you realize. A subscription to a European SaaS tool, a payout to a contractor in New Zealand, or a quick cash withdrawal during a business trip—each of these actions can trigger a confusing mix of fees.

The real cost often hides in two places: a fixed foreign transaction fee and a hidden exchange rate markup. Traditional banks typically add a percentage on top of the real mid-market exchange rate, and then charge an extra fee on top. Over dozens or hundreds of transactions, this can quietly drain your budget.

A practical pricing study conducted in Australia compared the total cost of sending, spending, and withdrawing money internationally across several popular bank accounts. The findings reveal just how wide the gap can be.

Sending money abroad should be simple, but the price tag varies dramatically depending on who you use. The study looked at the cost of sending the equivalent of $250 AUD to EUR, GBP, NZD, and USD. It included both the upfront fee and the exchange rate markup.

For a transfer to euros, the cheapest bank option charged $3.84, while several major banks cost over $16. For British pounds, the pattern was identical. Across all four currencies, the average bank cost was consistently several times higher than the most affordable digital alternative, which came in under $2.

For a business paying suppliers in multiple countries, these gaps aren’t just pennies—they add up fast. Even a handful of monthly payments can mean the difference between staying lean and losing hundreds of dollars to avoidable fees.

When you swipe your card in another country, your bank typically applies a foreign transaction fee. In the study, this fee was often around 3% of the purchase amount. On a $250 spend, that’s $7.50. Only one provider in the comparison offered $0 fees on foreign card spends, while others charged the same flat 3% no matter the currency.

For a business with team members on international trips or recurring overseas software subscriptions, these fees show up month after month. If you’re paying a $99/month tool in USD from an Australian card with a 3% markup, that’s nearly $36 in extra costs over a year—for just one subscription.

Withdrawing cash abroad often triggers both a flat fee and a percentage-based fee. The study found that many banks charged $12.50 for a $350 AUD equivalent withdrawal, on top of any exchange rate spread. Some digital-first accounts offered $0 fees up to a certain limit, which presents a clear advantage for business travelers.

The comparison also looked at ongoing account costs. Many traditional accounts carried monthly fees of $4 or $5 unless you meet waiver conditions like maintaining a minimum balance or depositing a certain amount each month. Digital accounts often had no monthly fees at all, making them a more predictable choice for growing businesses.

The study makes one thing clear: the financial infrastructure you choose for international payments directly impacts your bottom line. Whether you’re a digital agency paying freelancers, an ecommerce store collecting supplier invoices, or a SaaS company managing global software subscriptions, every transaction carries a cost.

The good news is that purpose-built payment platforms now exist to eliminate many of these fees. By using a multi-currency account paired with virtual cards and integrated spend controls, you can send, receive, and spend in foreign currencies without the excessive markups and monthly fees of traditional banks.

DogPay gives businesses a smarter way to manage money across borders. Instead of paying 3% foreign transaction fees every time you pay a supplier or subscribe to a global tool, you can use DogPay virtual cards that transact in the local currency with transparent, minimal fees. Your team can hold balances in multiple currencies, convert at competitive rates, and issue cards with built-in spend limits—all from one dashboard.

This is especially useful for companies that pay SaaS subscriptions, run ad campaigns in different currencies, pay remote freelancers, or need to give team members controlled spending power when traveling abroad. DogPay replaces the messy, expensive bank experience with a clean, predictable payment stack that scales with your international operations. No hidden markups, no monthly account fees, and no minimum balances—just straightforward global payments.