1. Use “Local Rails” Instead of SWIFT
The most effective way to avoid intermediary fees in 2026 is to use a service that uses local bank transfers rather than the international SWIFT network.
- How it works: Services like Wise, Revolut, or DBS Remit have their own Australian bank accounts. You pay them in your local currency, and they send AUD to your recipient from their Australian account.
- The Result: Because the money never actually crosses an international border via the SWIFT chain, there are zero intermediary fees. What you send is exactly what arrives.
2. Select the “OUR” Charge Code (If Using a Bank)
If you must use a traditional bank (for very large amounts or specific visa requirements), you will encounter the SWIFT “Charge Codes.” Most banks default to SHA (Shared), which is where hidden deductions happen.
- BEN (Beneficiary): Recipient pays all fees (The worst for tuition/rent).
- SHA (Shared): You pay your bank’s fee; the recipient pays intermediary fees.
- OUR (Sender): You pay a flat upfront fee (usually $25–$30) to cover all potential intermediary costs.
- 2026 Tip: Always select “OUR” for fixed-amount payments like tuition. It ensures the university receives the full balance, even if you pay a bit more upfront.
3. Choose “Fee-Absorbing” Banks in 2026
Some major banks have updated their 2026 policies to attract international students and expats by “absorbing” these middle-man costs.
| Bank / Service | Intermediary Fee Policy (2026) |
| CommBank (NetBank) | Waived for most foreign currency transfers (e.g., sending USD to an AUD account). |
| DBS Remit | $0 Handling Fees and guaranteed full-value delivery to Australia. |
| HSBC Global Money | $0 Fees between HSBC accounts globally (using their internal network). |
| Wise / Revolut | N/A (Uses local transfers to bypass the SWIFT chain entirely). |
4. Avoid “Double Conversion”
Intermediary banks often take a “cut” when they have to convert currency mid-transit.
- The Rule: Always send the currency that the recipient’s account is held in. If you are sending money to an Australian bank, send it as AUD.
- The Danger: If you send USD to an Australian bank, an intermediary bank might convert it at a poor rate AND take a fee before it even reaches Australia.
5. 2026 “Pro-Check” for Tuition Payments
If you are using Flywire or Convera for university fees:
- These platforms are designed to be “Net-to-University.” They usually quote you a price in your local currency that already includes any intermediary costs.
- Warning: If you try to bypass their system and send a direct wire to the university’s bank account without using their portal, you are almost certain to get hit with a $30+ intermediary deduction.
