Thanks for your feedback, it’s really useful as we improve our international payments experience. The fee communicated alongside the rate is the total fee you will pay for sending your payment (in this case £100 to SGD). This means it is the delivery fee + Starlings fee.
You can find more information about this on our website here.. We have recently added a comparison table and a fees table here and will soon be adding an interactive conversion tool too to our site.
This is how your payment and fees is calculated:
- You choose an amount of GBP to be converted (“Source Amount”).
- You choose a delivery option (e.g. SWIFT (priority) or Local Partner (SEPA and local partners))
- The delivery payment fee is deducted from the Source Amount
- Starling’s fee is then deducted (calculated on the Source Amount less the delivery fee), and the remaining net amount is converted (“Conversion Amount”)
- FX rate applied to the Conversion Amount to calculate the “Target Amount”
- Source Amount = GBP 100
- Delivery option (“Local Partner”) = GBP 0.90
- GBP 100 - 0.90 = GBP 99.10
- Starling Fee = GBP 99.10 / 1.004 = 98.71 (GBP 0.39 fee). The Total fee is £1.29.
=> Conversion Amount = 99.10 - 0.39 = 98.71
- GBP 98.71 x 1.7987 = SGD 177.549 round up to 177.55 (Target Amount)
[NB this example assumes the Starling fee is 0.40%]
We hope to add a clearer explanation of this to the app soon.