NZ banks charge $15–$35 per international wire transfer plus a poor exchange rate. On a $5,000 transfer, that gap can cost you $100–$200 more than a specialist service. Here’s how to do it cheaply.
Wise is the best option for most NZ international transfers — it uses the mid-market exchange rate and charges a small transparent fee. OFX is better for large transfers ($10,000+). NZ bank wire transfers are the most expensive option and should be avoided for regular overseas payments.
Why Bank Wire Transfers Are Expensive
When you send money internationally via your NZ bank, you pay twice:
- Transfer fee — typically $15–$35 per transaction
- Exchange rate margin — banks apply a markup of 1–4% over the mid-market rate
On a $5,000 NZD to AUD transfer, a bank markup of 2% plus a $25 fee = ~$125 in total costs. Wise might charge $35 for the same transfer.
Comparison of International Transfer Services
| Service | Fee structure | Exchange rate | Best for | Transfer time |
|---|---|---|---|---|
| Wise | Small % + fixed fee (shown upfront) | Mid-market rate | Most transfers | 1–3 business days |
| OFX | No transfer fee | Near mid-market (slight margin) | Large transfers $10k+ | 1–2 business days |
| Remitly | Varies by route and speed | Competitive | Sending to developing countries | Hours to 2 days |
| Western Union | Moderate fee | Poor-moderate rate | Cash pickup, emergency transfers | Minutes to 1 day |
| MoneyGram | Moderate fee | Poor rate | Cash pickup | Minutes to 1 day |
| NZ Bank wire | $15–$35 fee | 1–4% markup | Avoid for large amounts | 3–5 business days |
Wise — Best for Most NZ Transfers
Wise (formerly TransferWise) uses the mid-market exchange rate — the rate you see on Google — and charges a transparent percentage fee that’s shown before you confirm. There are no hidden exchange rate markups.
How it works:
- Create a Wise account at wise.com (identity verification required — passport or driver licence)
- Enter the amount you want to send and the destination country
- See the exact amount the recipient will receive before confirming
- Fund from your NZ bank account via bank transfer
- Recipient receives funds in 1–3 business days
Wise NZD costs (approximate):
- NZD → AUD: ~0.35% + small fixed fee
- NZD → GBP: ~0.4% + small fixed fee
- NZD → USD: ~0.4% + small fixed fee
- NZD → EUR: ~0.45% + small fixed fee
Fees change — always check the Wise calculator before transferring.
Wise also offers: A Wise account with a NZ account number for receiving payments internationally, and a Wise debit card for spending overseas at the mid-market rate.
OFX — Best for Large Transfers
OFX (NZ-registered) is particularly competitive for larger transfers where the exchange rate margin matters most. OFX charges no transfer fee but makes its margin on the exchange rate.
Advantages over Wise for large transfers:
- No transfer fee — the margin is built into the rate
- Rate negotiation possible for very large amounts ($50,000+)
- Dedicated dealer available by phone for complex transactions
- Forward contracts available (lock in a rate for a future transfer)
Best for: $10,000+ transfers; property purchases; business payments; migrant funds.
Remitly — Best for Specific Corridors
Remitly is competitive for sending money to countries in South Asia, Southeast Asia, the Pacific Islands, and Latin America — routes often not well-served by Wise.
If you’re sending money to the Philippines, India, Samoa, Tonga, or Fiji, compare Remitly vs Wise for those specific routes.
Western Union and MoneyGram — For Cash Pickup Only
Western Union and MoneyGram are expensive for standard transfers but have one major advantage: cash pickup. The recipient can collect cash at a Western Union or MoneyGram agent (many NZ post offices, convenience stores) without a bank account.
Use only for:
- Emergency cash transfers when the recipient has no bank account
- Destinations where banking infrastructure is limited
Avoid for: Regular bank-to-bank transfers — the combined fee and rate markup makes them significantly more expensive than Wise or OFX.
How to Compare Rates Properly
The total cost of an international transfer = fee + exchange rate margin. Always compare using total cost, not just the stated fee.
To compare accurately:
- Enter the same amount on Wise, your bank, and any other service
- Look at how much the recipient actually receives in their currency
- The service where the recipient receives the most is the cheapest
Don’t rely on the advertised exchange rate alone — the margin is where banks hide most of their cost.
Most Common NZ Transfer Routes
| Route | Best option | Notes |
|---|---|---|
| NZD → AUD | Wise | Very competitive on this route; OFX for $10k+ |
| NZD → GBP | Wise or OFX | Popular for NZ-UK migrants |
| NZD → USD | Wise or OFX | Common for US investments |
| NZD → EUR | Wise | Strong on major currencies |
| NZD → INR, PHP, BDT | Remitly or Wise | Compare both for Pacific/Asia routes |
| NZD → Western Samoa/Tonga | Remitly or Western Union | Check coverage |
Receiving Money into NZ
To receive international funds into your NZ bank account, give the sender:
- Your NZ bank’s SWIFT/BIC code
- Your full name as on the account
- Your NZ account number (in international IBAN-style format or as-is — NZ uses account numbers, not IBANs)
- Bank name and branch address
NZ banks typically charge a fee to receive international wire transfers ($7–$15). Check with your bank.
Alternative: If you receive international payments regularly, a Wise account with a local bank account in the sending country can eliminate the incoming wire fee.
Identity Verification Requirements
All international transfer services must comply with AML/CFT regulations. You’ll need to verify your identity with:
- Passport or NZ driver licence
- Proof of address
- Sometimes: source of funds declaration for large transfers
This is a one-time setup process for each service.
Next Steps
- Banking fees NZ — other fees to be aware of with NZ banking
- Best banks for new arrivals NZ — if you’re new to NZ and need to receive international funds
- Revolut NZ review — another option for multi-currency accounts
- EFTPOS vs credit card NZ — understanding NZ payment methods