How To Send Money To The United States

Quick answer

• Choose a transfer method: online service, bank wire, or money order.
• Compare fees and exchange rates across providers.
• Gather recipient details: full name, address, bank name, account number, and routing number.
• Understand transfer limits and processing times.
• Be aware of potential security risks and choose reputable services.
• Confirm receipt of funds with the recipient.

Who this is for

• Individuals needing to send funds to family or friends in the U.S.
• Businesses making payments to U.S. vendors or employees.
• Anyone unfamiliar with the process of international or domestic money transfers to the U.S.

What to check first (before you act)

Goal and timeline

Clearly define why you are sending money and when it needs to arrive. Are you sending funds for a one-time purchase, regular support, or an emergency? Knowing your timeline will help you select the fastest and most cost-effective method. For example, an urgent need might justify higher fees for a faster service.

Current cash flow

Assess your current financial situation to ensure you can afford to send the money without impacting your essential expenses or savings goals. Review your budget to see how this transfer fits into your overall spending plan.

Emergency fund or safety buffer

Before sending money, ensure you have an adequate emergency fund. This buffer protects you from unexpected expenses and prevents you from having to borrow money at high interest rates, which could negate the savings from a cheaper transfer method.

Debt and interest rates

If you have high-interest debt, consider prioritizing its repayment over sending money, especially if the amount you’re sending is small relative to your debt. High interest rates on debt can quickly outweigh any savings you might achieve on transfer fees or exchange rates. Check the specific interest rates on any outstanding loans or credit cards.

Credit impact

While sending money doesn’t directly impact your credit score, the method you use to fund the transfer might. For instance, using a credit card for a money transfer can be treated as a cash advance, often incurring high fees and interest. Ensure your chosen funding method aligns with your credit management strategy.

Step-by-step (simple workflow)

1. Identify the recipient’s details:

• What to do: Collect the recipient’s full legal name, mailing address, and if sending to a bank account, their bank’s name, account number, and routing number.
• What “good” looks like: All necessary information is accurate and complete, minimizing delays or rejections.
• Common mistake and how to avoid it: Incorrect spelling of names or wrong account numbers. Double-check all details with the recipient before initiating the transfer.

2. Determine the transfer amount and currency:

• What to do: Decide precisely how much U.S. dollars you need to send or how much local currency you are willing to spend.
• What “good” looks like: A clear understanding of the final amount the recipient will receive in USD.
• Common mistake and how to avoid it: Assuming the amount you send in your currency will be the exact amount received in USD due to fluctuating exchange rates. Factor in potential exchange rate differences.

3. Research transfer providers:

• What to do: Explore various options like online money transfer services (e.g., Wise, Remitly, Xoom), traditional banks for wire transfers, or money order services.
• What “good” looks like: A list of 2-3 providers that seem competitive based on initial fee and exchange rate checks.
• Common mistake and how to avoid it: Sticking with the first provider found without comparing. Always shop around for the best deal.

4. Compare fees and exchange rates:

• What to do: Get quotes from your chosen providers, noting the transfer fee and the exchange rate offered. Understand if the fee is a flat rate or a percentage.
• What “good” looks like: A clear comparison showing the total cost (fees + unfavorable exchange rate markup) for each provider.
• Common mistake and how to avoid it: Focusing only on the stated transfer fee and ignoring the exchange rate markup. A seemingly low fee can be offset by a poor exchange rate.

5. Check transfer limits and processing times:

• What to do: Verify if the provider has limits on how much you can send and how long the transfer is expected to take.
• What “good” looks like: The provider’s limits and timelines meet your needs for this specific transfer.
• Common mistake and how to avoid it: Not checking limits for large transfers or underestimating processing times for urgent needs.

6. Choose a funding method:

• What to do: Select how you will pay for the transfer (e.g., bank account, debit card, credit card).
• What “good” looks like: A funding method that is convenient and doesn’t incur unexpected charges.
• Common mistake and how to avoid it: Using a credit card without checking for cash advance fees, which can be very high.

7. Initiate the transfer:

• What to do: Follow the provider’s instructions to set up and confirm the transfer. This usually involves entering recipient details, amount, and payment information.
• What “good” looks like: The transfer is successfully initiated, and you receive a confirmation number or receipt.
• Common mistake and how to avoid it: Rushing through the process and making a typo in the final confirmation. Take a moment to review all details before submitting.

8. Track the transfer:

• What to do: Use the confirmation number or tracking link provided by the service to monitor the transfer’s progress.
• What “good” looks like: You can see the money moving from your account to the recipient’s account.
• Common mistake and how to avoid it: Assuming the transfer is complete without tracking. Delays can happen, and tracking keeps you informed.

9. Confirm receipt with the recipient:

• What to do: Once the tracking shows the money has arrived, contact the recipient to verify they have received the funds.
• What “good” looks like: The recipient confirms they have the money in their account.
• Common mistake and how to avoid it: Not confirming receipt, which can lead to misunderstandings or missed transfers that go unnoticed.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not comparing transfer services	Overpaying on fees and exchange rates, losing money unnecessarily.	Always get quotes from at least 2-3 different providers before committing. Use comparison websites if available.
Focusing only on the transfer fee	Being blindsided by a poor exchange rate that makes the transfer more expensive.	Look at the total cost: transfer fee plus the difference between the provider’s exchange rate and the mid-market rate.
Using a credit card without checking fees	Incurring high cash advance fees and immediate interest charges.	Check your credit card’s terms for cash advance fees and interest rates. If high, use a debit card or bank transfer instead.
Incorrect recipient details	Delayed transfers, rejected payments, or funds sent to the wrong account.	Double-check and triple-check the recipient’s name, address, bank name, account number, and routing number with the recipient before submitting.
Ignoring transfer limits	Inability to send the full amount needed, requiring multiple smaller transfers.	Verify the provider’s sending limits beforehand, especially for larger sums. You may need to use a different service or break down the transfer if limits are too low.
Underestimating processing times	Funds arrive late, causing missed payments or financial stress for the recipient.	Understand the estimated delivery time for each service. For urgent transfers, choose a faster, potentially more expensive option.
Not tracking the transfer	Unawareness of delays or issues, leading to uncertainty and potential problems.	Use the tracking number or link provided by the service to monitor the transfer’s progress. This helps identify any hiccups early on.
Not confirming receipt	Uncertainty about whether the money arrived, leading to potential disputes.	Always contact the recipient to confirm they have received the funds. This provides closure and allows you to address any discrepancies immediately.
Sending money to an unknown or unverified service	Risk of fraud, losing money entirely, or identity theft.	Only use well-established, reputable money transfer services or your trusted bank. Look for customer reviews and security certifications.
Not understanding currency conversion	Sending an amount that results in less than intended for the recipient.	Clearly understand the exchange rate and how it affects the final amount received in USD. Many services show the estimated received amount upfront.

Decision rules (simple if/then)

• If the transfer is urgent and needs to arrive within 24 hours, then use a reputable online money transfer service with guaranteed next-day delivery, because these services are typically faster than traditional banks for smaller amounts.
• If the amount to be sent is large (e.g., tens of thousands of dollars), then consider a bank wire transfer, because banks often have higher transfer limits and may offer better rates for significant sums, though they might be slower.
• If you are sending money frequently for smaller amounts, then set up an account with a preferred online transfer service, because this streamlines the process and allows you to track your history easily.
• If the recipient does not have a bank account, then consider a service that allows cash pickup or delivery to a specific address, because not all transfer methods require bank access.
• If the transfer fee is zero or very low, then check the exchange rate very carefully, because the provider may be making up the cost through a less favorable exchange rate.
• If you are sending money to yourself (e.g., transferring funds between your own accounts in different countries), then use a service designed for peer-to-peer transfers or currency exchange, because these often have the best rates for personal use.
• If the recipient’s bank is known to have high incoming international wire fees, then explore alternative transfer methods that deposit directly into the account, because this can save the recipient money.
• If you have a large amount of debt with high interest rates, then prioritize paying down that debt before sending money, because the interest saved on debt will likely be greater than any savings from a cheaper transfer method.
• If the transfer is for a business transaction, then ensure you understand any compliance or reporting requirements, because business transfers may have different regulations than personal ones.
• If you are unsure about the legitimacy of a transfer request, then verify the request through a separate communication channel with the person asking for the money, because this helps prevent falling victim to scams.
• If the transfer amount is relatively small and convenience is key, then using a service integrated with your mobile payment app might be the easiest option, because it minimizes the steps required.

FAQ

What is the cheapest way to send money to the U.S.?

The cheapest way usually involves comparing online money transfer services, as they often have lower fees and better exchange rates than traditional banks. Look for services that specialize in international transfers and have transparent pricing.

How long does it take to send money to the U.S.?

Transfer times can vary significantly. Online services might take minutes to a few business days. Bank wire transfers can also take 1-5 business days, depending on the banks involved and the countries of origin and destination.

What information do I need to send money to the U.S.?

You’ll typically need the recipient’s full legal name, their U.S. bank name, their bank account number, and the bank’s routing number (also known as an ABA number). A U.S. address for the recipient is also often required.

Can I send money to the U.S. using PayPal?

Yes, PayPal can be used to send money to the U.S., both domestically and internationally. However, it’s essential to check their fees and exchange rates, as they may not always be the most competitive option compared to specialized money transfer services.

What are routing numbers and why are they important?

Routing numbers (ABA numbers) are nine-digit codes used by U.S. financial institutions to identify specific banks. They are crucial for processing electronic transactions like direct deposits and wire transfers, ensuring money reaches the correct bank.

Are there limits on how much money I can send to the U.S.?

Yes, most money transfer services have daily, weekly, or monthly limits on how much you can send. These limits vary by provider and your verification status. Banks often have higher limits for wire transfers.

What’s the difference between a bank wire and an online money transfer service?

A bank wire is a direct transfer between bank accounts facilitated by the banking system, often used for large sums but can be slower and more expensive. Online money transfer services are typically faster and cheaper for smaller to medium amounts, using their own network or partnerships to move funds.

How do I ensure my money transfer is secure?

Use reputable and well-known providers with strong security measures, such as two-factor authentication and encryption. Avoid sending money to people you don’t know or through unverified platforms. Always confirm the recipient’s details meticulously.

What this page does NOT cover (and where to go next)

• Specific tax implications of sending or receiving money (consult a tax professional).
• Detailed regulations for sending money to U.S. territories (e.g., Puerto Rico, Guam).
• Business-specific payment solutions or payroll services (research business finance platforms).
• Using cryptocurrency for transfers (explore cryptocurrency exchanges and wallets).
• Legal requirements for large international transactions that might require reporting (check with financial regulators or a legal advisor).