How to Send Money Internationally

Quick answer

• Research multiple money transfer services to compare fees and exchange rates.
• Consider the urgency of the transfer and the amount being sent.
• Look for services that offer transparent pricing with no hidden charges.
• Understand the different payout options available (bank deposit, cash pickup).
• Check if the recipient needs to provide any specific information.
• Keep track of your transaction reference number for easy follow-up.

Who this is for

• Individuals needing to support family or friends abroad.
• Businesses making payments to international suppliers or freelancers.
• Travelers who need to send money back home or to a new location.

What to check first (before you act)

Goal and timeline

Clearly define why you are sending money and when it needs to arrive. Is it for an urgent bill payment, a gift, or regular support? This will influence your choice of service, as some are faster than others, often at a higher cost.

Current cash flow

Understand your own financial situation before sending money. Ensure you have sufficient funds available after accounting for your essential expenses and savings goals. Avoid sending money that you might need unexpectedly in the near future.

Emergency fund or safety buffer

Before sending funds internationally, confirm you have a healthy emergency fund. This buffer should cover 3-6 months of living expenses. Relying on money needed for emergencies to send abroad can put you in a difficult financial position.

Debt and interest rates

Assess your outstanding debts. If you have high-interest debt, it might be more financially prudent to pay that down before sending large sums internationally. The interest you pay on debt can often outweigh the cost of sending money.

Credit impact

While sending money internationally doesn’t directly impact your credit score, some methods might involve linking bank accounts or credit cards. Ensure you are comfortable with the security and privacy practices of the service you choose.

Step-by-step (simple workflow)

1. Identify the recipient’s details: Gather their full name, bank account number (if applicable), bank name, and any other required information specific to their country and the transfer method.

• What “good” looks like: You have all necessary and accurate information to initiate the transfer.
• Common mistake: Incomplete or incorrect recipient details.
• How to avoid it: Double-check all information with the recipient before entering it.

2. Determine the amount and currency: Decide how much you need to send and in which currency. Be aware of the exchange rate you’ll receive.

• What “good” looks like: You know the exact amount the recipient will receive in their local currency.
• Common mistake: Focusing only on the amount you send, not the amount received after conversion.
• How to avoid it: Always look at the final amount the recipient gets in their currency.

3. Research money transfer services: Compare providers like dedicated money transfer companies, banks, and digital wallets. Look at fees, exchange rates, transfer speed, and customer reviews.

• What “good” looks like: You’ve identified at least 2-3 reputable services that meet your needs.
• Common mistake: Using the first service you find without comparing options.
• How to avoid it: Dedicate time to compare rates and fees across different platforms.

4. Create an account (if necessary): Many services require you to register and verify your identity, especially for larger amounts or first-time use.

• What “good” looks like: Your account is set up and verified, ready for a transaction.
• Common mistake: Delaying account creation, which can hold up urgent transfers.
• How to avoid it: Start the registration process early, as verification can sometimes take a day or two.

5. Choose your transfer method: Select how you want to fund the transfer (e.g., bank transfer, debit card, credit card, cash).

• What “good” looks like: You’ve chosen a funding method that is convenient and cost-effective for you.
• Common mistake: Using a credit card without understanding potential cash advance fees.
• How to avoid it: Check with your bank or card issuer about fees for funding money transfers.

6. Enter transfer details: Input the amount, currencies, recipient information, and your payment method.

• What “good” looks like: All details are accurately entered and confirmed.
• Common mistake: Typos in the amount or recipient details.
• How to avoid it: Review every field carefully before proceeding.

7. Review and confirm the transfer: Carefully examine the summary screen, which should show the amount being sent, the exchange rate, fees, and the estimated delivery time.

• What “good” looks like: You are confident that all details are correct and the costs are as expected.
• Common mistake: Clicking “confirm” without thoroughly reviewing the transaction details.
• How to avoid it: Take a moment to read every line item on the confirmation page.

8. Make the payment: Complete the transaction using your chosen funding method.

• What “good” looks like: The payment is successfully processed.
• Common mistake: Insufficient funds in your chosen payment source.
• How to avoid it: Ensure your bank account or card has enough available credit/funds.

9. Track the transfer: Note down the transaction reference number. Use the service’s tracking tool to monitor the progress of your money.

• What “good” looks like: You can see the real-time status of your transfer.
• Common mistake: Losing the tracking number and being unable to follow up.
• How to avoid it: Save the reference number in a secure place or take a screenshot.

10. Confirm receipt with the recipient: Once the estimated delivery time has passed, contact the recipient to ensure they have received the funds.

• What “good” looks like: The recipient confirms they have successfully received the money.
• Common mistake: Assuming the money has arrived without confirmation.
• How to avoid it: Always get a confirmation from the person you sent money to.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not comparing exchange rates	You pay more for the same amount of currency, reducing the amount the recipient receives.	Use comparison tools or check rates across multiple providers before initiating a transfer.
Ignoring transfer fees	Unexpected charges eat into the amount being sent, leading to a shortfall for the recipient.	Always look for the total cost, including the transfer fee and any margin on the exchange rate.
Using a bank for small transfers	Banks often have higher fees and less favorable exchange rates for international money transfers.	For smaller amounts, dedicated money transfer services are usually more cost-effective.
Not verifying recipient details	Funds can be delayed, sent to the wrong person, or lost entirely, requiring a lengthy recovery process.	Double-check names, account numbers, and other identifiers with the recipient before confirming the transfer.
Choosing speed over cost blindly	You might overpay significantly for a transfer that arrives only a few hours earlier than a cheaper option.	Balance speed requirements with cost. If the transfer isn’t urgent, opt for a more economical service.
Using a credit card without checking fees	Credit card companies may charge cash advance fees, plus interest, making the transfer very expensive.	Check with your credit card issuer about fees for funding money transfers. Debit cards or bank transfers are often cheaper.
Not understanding payout methods	The recipient may not be able to access the funds easily (e.g., no nearby pickup location).	Confirm with the recipient their preferred and most accessible payout method before sending.
Forgetting to track the transfer	You won’t know if there are delays or issues, and it’s harder to resolve problems if they arise.	Save the transaction reference number and use the provider’s tracking tool regularly.
Not checking daily/transaction limits	You may be unable to send the full amount needed in a single transaction.	Be aware of the limits for your chosen service and plan accordingly if you need to send a large sum.
Sending money during public holidays	Transfers can be significantly delayed as banks and transfer services may be closed.	Plan your transfers to avoid major public holidays in both your country and the recipient’s country.

Decision rules (simple if/then)

• If the transfer is urgent, then prioritize services known for fast delivery, even if they cost slightly more, because timeliness is critical.
• If the amount being sent is small, then look for services with low or no fixed fees, because fixed fees can disproportionately impact small transfers.
• If the amount being sent is large, then compare the percentage-based fees and exchange rate margins carefully, because these can add up significantly.
• If you are sending money regularly, then consider setting up recurring transfers with a provider that offers competitive rates for repeat customers, because it simplifies the process and can lock in favorable terms.
• If the recipient needs cash, then choose services that offer cash pickup options, because bank deposits may not be suitable for everyone.
• If you are sending money to a country with volatile currency, then check the exchange rate and consider locking it in if possible, because rates can change rapidly.
• If you are unsure about a provider’s legitimacy, then stick to well-known, established money transfer services or your own bank, because security is paramount.
• If your bank offers international transfers, then compare their rates and fees to specialized services, because sometimes banks can be competitive, especially for certain corridors or amounts.
• If you are sending money to a business, then ensure the service is suitable for business transactions and check for any specific requirements or limits, because business transfers may have different rules.
• If you have a choice of payout methods, then discuss with the recipient which method is most convenient and secure for them, because their access is key.

FAQ

What is the best way to send money internationally?

The “best” way depends on your needs. For speed, specialized money transfer services are often fastest. For cost-effectiveness, compare rates and fees across various providers. Banks are a reliable but often more expensive option.

How much does it cost to send money internationally?

Costs vary greatly. They typically include a transfer fee (fixed or percentage-based) and a margin on the exchange rate. Some services have no upfront fees but build costs into the exchange rate.

How long does it take to send money internationally?

Transfers can take anywhere from a few minutes for instant services to several business days, depending on the provider, destination country, and payment method.

Can I send money internationally using PayPal?

Yes, PayPal offers international money transfers. However, their fees and exchange rates can sometimes be less competitive than dedicated money transfer services, especially for larger amounts.

What information do I need to send money to someone abroad?

You’ll typically need the recipient’s full name, their bank name and address, and their account number (like an IBAN or SWIFT/BIC code). Some services may require a mobile number or email address.

Are there limits on how much money I can send internationally?

Most services have daily, monthly, or per-transaction limits. These vary by provider and your verification level. You may need to provide additional documentation for larger sums.

What is an exchange rate margin?

This is the difference between the mid-market exchange rate (the rate banks use) and the rate offered to you by the money transfer service. Providers make a profit on this difference.

How can I ensure my money transfer is safe?

Use reputable and regulated money transfer services. Look for providers that use encryption and have clear security policies. Always keep your transaction details secure.

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

• Specific exchange rates or fee structures for any given provider. (Check official websites.)
• Detailed tax implications of sending or receiving money abroad. (Consult a tax professional.)
• Legal requirements for businesses sending large sums or recurring payments. (Refer to business banking or legal counsel.)
• Options for sending physical cash internationally. (Investigate specialized courier services.)
• Investment-related international fund transfers. (Consult a financial advisor.)