A BR to BR bank charge happens when you transfer money between two financial institutions.
This charge is levied on transactions between two different banks in either a domestic or international transaction.
This article will discuss what a BR to BR bank charge is and what to do if you find one in your account.
With most people using online banking these days, moving money around may appear seamless and instant.
However, there are back office processes that occur in the background by financial institutions and occasionally, you will be charged a small fee for a BR to BR transfer.
How to Calculate a BR to BR Bank Charge?
The calculation of the charge completely depends on how much of a fee your bank charges.
Some banks won’t charge anything, in which case you wouldn’t see the BR to BR bank charge on your account.
Most banks in Canada have a modest fee of between 0.5% and 2.0% per transaction but others will have a standardized charge amount.
You will also likely face higher transaction fees if you are transferring money to an international branch of the bank, rather than domestic.
Don’t be surprised if there are even more fees on top of the BR to BR bank charge if you want special features like an express transfer.
Why Are BR to BR Bank Charges Applied?
As with most banking fees, the BR to BR bank charge is applied to cover the cost of the administrative work behind the transfer.
Banks need to pay for the overhead to run the systems that facilitate these transfers and ensure that the bank’s financials are accurate.
Banks often charge fees to improve banking efficiencies.
For example, rather than making a number of different transactions, a BR to BR bank charge would force customers to combine their transfers into one larger transaction.
This also improves the bank’s efficiency as there are fewer transactions with the consolidation of funds.
Different Types of BR to BR Bank Charges
Domestic BR to BR Bank Charges
As the name suggests, this fee is charged when you transfer funds from one bank branch to another within the same country.
These are usually the lowest of the BR to BR bank charges and are used by banks to cover administrative and processing costs.
How can you avoid these charges within your own country?
If you are able to, using online banking generally lowers the number of fees you have to pay or using an option like Interac e-Transfer may accomplish the same goal for free.
International BR to BR Bank Charges
The international BR to BR bank charge comes when you transfer money to an international branch of your bank.
Now, not every bank in Canada has international branches so for some, this might not be something to worry about
International BR to BR bank charges can be higher than domestic charges.
There is also the possibility of a foreign currency charge or foreign exchange fees.
If you plan on making an international BR to BR transfer, you should consult your bank to see what the charges are for that transaction.
How to Avoid a BR to BR Bank Charge
If you know you might be making a lot of BR to BR bank transfers, you should consider signing up with banks that have lower or even no fees for these transactions.
Another way is to use mobile or online banking.
Often banks will waive the fees if you do things online rather than going into a branch to make the transfer.
Using an alternative payment method like e-Transfer or PayPal can help avoid BR to BR bank charges.
Although PayPal may have its own fees, so be sure to compare beforehand.
