How to Send Money To Hungary: Step-by-Step Guide

Quick answer

• Choose a reputable money transfer service for competitive exchange rates and lower fees.
• Compare services based on transfer speed, fees, exchange rates, and payment/delivery options.
• Gather necessary recipient details: full name, address, bank name, account number (IBAN), and SWIFT/BIC code.
• Understand potential fees, including transfer fees and foreign exchange markups.
• Be aware of daily or per-transaction sending limits set by the service.
• Double-check all recipient information before confirming the transfer to avoid delays or errors.

Who this is for

• Individuals needing to send funds to family or friends in Hungary.
• People making payments for goods or services from Hungarian businesses.
• Anyone looking for efficient and cost-effective ways to transfer money internationally.

What to check first (before you act)

Goal and timeline

Before you send money, clearly define why you’re sending it and when it needs to arrive. Is this an urgent family emergency, a regular bill payment, or a one-time gift? Knowing your timeline will help you prioritize speed over cost, or vice versa. Some services offer instant transfers for a higher fee, while others take a few business days but are cheaper.

Current cash flow

Assess your own financial situation to ensure sending money won’t strain your budget. Can you comfortably afford the transfer amount plus any associated fees without dipping into your essential spending money or emergency savings? It’s crucial to maintain your own financial stability while helping others.

Emergency fund or safety buffer

Always ensure you have a robust emergency fund before making international transfers. Unexpected expenses can arise, and you don’t want to be forced to cancel or delay a money transfer because of a personal financial emergency. A general guideline is to have 3-6 months of living expenses saved.

Debt and interest rates

Consider any high-interest debt you might be carrying. If you have credit card debt or other loans with significant interest rates, it might be more financially prudent to pay down that debt before sending money abroad, especially if the amount you’re sending is substantial. The interest saved could be more valuable than the amount sent.

Credit impact

While sending money doesn’t directly impact your credit score, the method you use to fund the transfer might. For example, if you fund a transfer using a credit card, and it’s treated as a cash advance, you could incur high fees and interest, and it might affect your credit utilization ratio. Using a bank account or debit card is generally more straightforward.

Step-by-step (simple workflow)

1. Define Transfer Amount and Currency:

• What to do: Decide precisely how much U.S. dollars (USD) you want to send or how much Hungarian Forint (HUF) you want your recipient to receive.
• What “good” looks like: You have a clear figure in mind, considering the recipient’s needs and your budget.
• Common mistake: Not accounting for fluctuating exchange rates.
• How to avoid it: Get a real-time quote before you commit.

2. Research Money Transfer Services:

• What to do: Explore various providers like Wise (formerly TransferWise), Remitly, Xoom (a PayPal service), WorldRemit, or traditional bank wire transfers.
• What “good” looks like: You have a shortlist of 2-3 services that appear competitive for your specific transfer needs.
• Common mistake: Only checking one service or defaulting to your bank.
• How to avoid it: Use comparison websites or visit multiple provider sites directly.

3. Compare Fees and Exchange Rates:

• What to do: Look at the total cost, which includes the transfer fee and the exchange rate markup.
• What “good” looks like: You understand the total amount of HUF the recipient will get for your USD, after all costs.
• Common mistake: Focusing only on the advertised transfer fee and ignoring the exchange rate.
• How to avoid it: Always compare the final amount received, not just the upfront fee.

4. Gather Recipient Information:

• What to do: Collect the recipient’s full legal name, their full address in Hungary, the name of their bank, their IBAN (International Bank Account Number), and the SWIFT/BIC code for their bank.
• What “good” looks like: You have all the necessary details accurate and complete.
• Common mistake: Incorrect or incomplete bank details leading to failed transfers.
• How to avoid it: Ask the recipient to double-check their IBAN and SWIFT/BIC code directly from their bank statement or online banking.

5. Gather Your Information:

• What to do: Have your own identification details ready (name, address, date of birth) and your payment method (bank account details, debit card, credit card).
• What “good” looks like: You are prepared to provide the required personal information for verification.
• Common mistake: Not having payment details readily available, causing delays.
• How to avoid it: Log in to your bank account or have your card information handy before starting the transfer process.

6. Create an Account and Verify Identity:

• What to do: Sign up for an account with your chosen money transfer service. You may need to upload a copy of your ID (driver’s license, passport) or other documents for verification.
• What “good” looks like: Your account is set up and verified, allowing you to proceed with the transfer.
• Common mistake: Underestimating the time verification can take.
• How to avoid it: Start the account creation process well in advance of when you need to send the money.

7. Initiate the Transfer:

• What to do: Enter the transfer amount, select USD as sending currency and HUF as receiving currency, input all recipient details, and choose your payment method.
• What “good” looks like: All fields are accurately filled, and you’re ready to review the final details.
• Common mistake: Typos in recipient information.
• How to avoid it: Proofread every single field meticulously before confirming.

8. Review and Confirm Transfer:

• What to do: Carefully review the summary screen, checking the amount being sent, the exchange rate, fees, estimated delivery time, and all recipient information.
• What “good” looks like: You are confident all details are correct and the terms are acceptable.
• Common mistake: Rushing this final check.
• How to avoid it: Take a deep breath and read every line item.

9. Fund the Transfer:

• What to do: Complete the payment using your chosen method (bank transfer, debit card, credit card).
• What “good” looks like: The payment is successfully processed by the service.
• Common mistake: Using a payment method that incurs unexpected fees (e.g., credit card cash advance).
• How to avoid it: Check your payment provider’s terms for international money transfer fees.

10. Track the Transfer:

• What to do: Most services provide a tracking number or link. Use this to monitor the transfer’s progress.
• What “good” looks like: You can see the money moving through the system and anticipate its arrival.
• Common mistake: Forgetting to track and not knowing if there’s an issue.
• How to avoid it: Bookmark the tracking page or save the tracking number.

11. Confirm Receipt with Recipient:

• What to do: Once the estimated delivery time has passed, contact your recipient to confirm they have received the funds.
• What “good” looks like: The recipient confirms the correct amount has arrived in their account.
• Common mistake: Assuming the money arrived without confirmation.
• How to avoid it: Always get verbal or written confirmation from the recipient.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Ignoring exchange rate markups	You send the same USD amount but the recipient receives less HUF than expected.	Always compare the <em>final HUF amount</em> you get for your USD, not just the transfer fee. Look for services with transparent, mid-market rates.
Incorrect recipient bank details	Transfer is delayed, rejected, or sent to the wrong account.	Double-check the IBAN and SWIFT/BIC code with the recipient. Many services have validation tools, but human error is still possible.
Not verifying sender identity early	Delays in setting up your account and making your first transfer.	Complete your profile and identity verification as soon as you decide on a service, especially if you need to send money urgently.
Using a credit card without checking	High cash advance fees and interest charges from your credit card issuer.	Fund transfers with a debit card or bank account whenever possible. If using a credit card, confirm it’s not treated as a cash advance by the provider.
Sending small amounts frequently	Cumulative fees can add up to a significant percentage of the total sent.	For very small amounts, consider if a less formal method (if available and secure) might be cheaper, or batch multiple small transfers into one larger one.
Relying solely on bank wire transfers	Often the most expensive option with less favorable exchange rates.	Compare bank wires to specialized money transfer services. Banks are generally less competitive for retail international transfers.
Not informing the recipient	Recipient may be surprised or unprepared to receive funds.	Let the recipient know when to expect the money and from whom. This also helps them flag any potential issues quickly.
Missing the transfer deadline	Funds may not arrive by the required date, causing problems.	Always check the estimated delivery times and add a buffer. If it’s time-sensitive, choose a faster (likely more expensive) service.
Not checking transfer limits	You might be unable to send the full amount you intended in one go.	Familiarize yourself with the daily, weekly, or per-transaction limits of the service you choose.
Forgetting to track the transfer	You won’t know if there’s a problem until it’s too late.	Save the tracking link or number and check its status periodically until delivery is confirmed.

Decision rules (simple if/then)

• If the transfer is urgent and needs to arrive within hours, then use a service offering instant or same-day transfers, because these prioritize speed over cost.
• If the transfer amount is large, then compare services based on the percentage of fees and the exchange rate markup, because small percentage differences add up significantly.
• If you are sending money regularly to the same recipient, then look for services with loyalty programs or recurring transfer options, because these can offer better rates or lower fees over time.
• If you prioritize the absolute lowest cost and the timeline is flexible (several business days), then compare services that offer bank-to-bank transfers with lower upfront fees, because these often have slightly longer delivery times.
• If you are unsure about the recipient’s bank details, then ask them to send you a screenshot of their online banking showing the IBAN and SWIFT/BIC code, because this reduces the chance of manual transcription errors.
• If the amount you’re sending is small, then consider the total cost including fees and exchange rate impact, because a low fee might be offset by a poor exchange rate.
• If you are sending money for a business purpose, then check if the service offers business accounts, because these may have different limits, fees, and features tailored for commercial transactions.
• If your bank offers international wire transfers, then get a quote from them and compare it to at least two other specialized money transfer services, because banks are often more expensive for retail customers.
• If you are concerned about the security of a service, then check reviews and look for services regulated by financial authorities in their operating countries, because this indicates a higher level of oversight.
• If you need to send money immediately and don’t have time to set up a new account, then consider using a service you’re already familiar with or one that allows payment via PayPal/Xoom, because existing accounts speed up the process.

FAQ

How long does it take to send money to Hungary?

Transfer times can vary significantly, from a few minutes for instant transfers to 1-3 business days for standard transfers, depending on the service and how you fund the transfer.

What information do I need to send money to Hungary?

You’ll need the recipient’s full name, their full address in Hungary, their bank’s name, their IBAN (International Bank Account Number), and their bank’s SWIFT/BIC code.

Are there limits on how much money I can send to Hungary?

Yes, most money transfer services have sending limits, which can be daily, weekly, or per transaction. Check with your chosen provider for specific details.

What are the typical fees involved?

Fees can include a fixed transfer fee and a markup on the exchange rate. Some services are more transparent with their fees than others.

Is it cheaper to use a bank or a money transfer service?

Generally, specialized money transfer services are more cost-effective than traditional bank wire transfers for sending money to Hungary, offering better exchange rates and lower fees.

Can I send money to a Hungarian bank account or for cash pickup?

Most services allow direct bank deposits. Some may also offer cash pickup options, though bank deposit is the most common method for Hungary.

What is an IBAN and SWIFT/BIC code?

The IBAN is a unique identifier for bank accounts internationally, and the SWIFT/BIC code identifies a specific bank. Both are crucial for international transfers.

Will my recipient in Hungary have to pay any fees?

Typically, the sender pays all fees. However, it’s always wise to confirm with the service provider, as some rare scenarios or specific bank processing in Hungary might incur minor charges.

What if I make a mistake in the recipient’s details?

If the details are incorrect, the transfer may be delayed, rejected, or sent to the wrong account. Contact the money transfer service immediately to try and correct it.

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

• Specific Hungarian banking regulations: For detailed information on receiving money in Hungary, consult Hungarian financial institutions or official government resources.
• Tax implications of sending or receiving money: Consult a tax professional for advice on whether your international transfers have any tax consequences in the U.S. or Hungary.
• Business-specific international payment solutions: For large-volume business transactions, explore dedicated international business payment platforms.
• Currency hedging strategies: If you need to manage significant currency exchange rate risks, research financial instruments for currency hedging.
• Emergency cash transfer services: While some services offer fast transfers, for immediate, critical cash needs without bank accounts, explore services specifically designed for emergency cash pickup.