Meridian — Why sending money abroad still costs $45

The international transfer system was built for correspondent banks, not for people. That's finally starting to change.

Last November, I wired $200 to an illustrator in São Paulo. My bank charged $45 in fees and applied a rate 3% below mid-market. The illustrator received roughly $148.

The correspondent banking maze

International wires still travel through a 1970s correspondent banking network. Your bank sends funds to a partner institution, which forwards them again before delivery. Each hop extracts a fee, adds margin, and slows the payment.

"The average international transfer passes through 3.2 intermediary banks. Each one takes a cut."
— Financial Infrastructure Report, 2025