Sending Money Internationally

Quick answer

• Research exchange rates and fees carefully before sending.
• Compare services like bank wires, money transfer apps, and online platforms.
• Understand transfer limits and processing times for your chosen method.
• Verify recipient details precisely to avoid delays or lost funds.
• Consider the security and reputation of the money transfer provider.
• Keep records of your transactions for your personal finances.

Who this is for

• Individuals needing to send money to family or friends overseas.
• Expatriates managing finances in different countries.
• Small businesses making international payments to suppliers or contractors.

What to check first (before you act)

Goal and timeline

• What you need to check: Clearly define why you’re sending money and when it needs to arrive. Are you sending a one-time gift, regular support, or a business payment? Is speed critical, or can it wait a few days?
• Why it matters: Different transfer methods have varying speeds and costs. Knowing your urgency helps you choose the most suitable and cost-effective option. For example, a time-sensitive payment might justify a slightly higher fee for faster delivery.
• Common pitfall: Assuming all services are equally fast. This can lead to missed deadlines or unnecessary rush fees.

Current cash flow

• What you need to check: Understand your current income, expenses, and available funds. How much can you comfortably send without impacting your own financial stability?
• Why it matters: Sending money internationally is an expense. You need to ensure you have sufficient funds available without overextending your budget. This prevents financial strain on your end.
• Common pitfall: Sending money without accounting for its impact on your immediate financial needs, like rent or bills.

Emergency fund or safety buffer

• What you need to check: Do you have a readily accessible emergency fund to cover unexpected expenses?
• Why it matters: Unexpected events can happen. If you deplete your savings to send money, you might be vulnerable if an emergency arises for you.
• Common pitfall: Using funds earmarked for emergencies to make an international transfer.

Debt and interest rates

• What you need to check: Assess any outstanding debts you have, especially those with high interest rates.
• Why it matters: Paying down high-interest debt is often a better financial move than sending money abroad, especially if the amount you’re considering sending could make a significant dent in that debt. The interest saved can be substantial.
• Common pitfall: Prioritizing international transfers over aggressively paying down high-interest debt.

Credit impact

• What you need to check: Understand how the method you use to send money might affect your credit score.
• Why it matters: While sending money itself rarely impacts your credit, how you fund the transfer can. For instance, using a credit card for a cash advance might incur fees and interest, and if not managed, could indirectly affect your credit utilization.
• Common pitfall: Not considering the funding method’s potential impact on your credit health.

Step-by-step (simple workflow)

1. Determine the amount and currency: Decide precisely how much you need to send and in which currency the recipient needs to receive it.

• What “good” looks like: A clear, confirmed amount in both your currency and the recipient’s currency.
• Common mistake: Estimating the amount. This can lead to shortfalls or overpayments. Always confirm the exact figure.

2. Identify the recipient’s details: Gather all necessary information for the recipient, including their full name, bank name, account number, and potentially SWIFT/BIC codes or other routing information.

• What “good” looks like: Accurate and complete recipient details, matching official identification.
• Common mistake: Typos or incomplete information. This is a primary cause of delayed or lost transfers. Double-check everything.

3. Research transfer providers: Explore different options: your bank, dedicated money transfer services (apps and online platforms), and potentially peer-to-peer services.

• What “good” looks like: A list of providers with their typical fees, exchange rates, and transfer times.
• Common mistake: Sticking with the first option (e.g., your bank) without comparison. Banks often have higher fees and less competitive exchange rates.

4. Compare exchange rates and fees: For each provider, check the current exchange rate they offer and all associated fees (transfer fees, hidden charges, etc.).

• What “good” looks like: A clear understanding of the total cost in your currency for the amount you want to send. Look at the “all-in” cost.
• Common mistake: Focusing only on the transfer fee and ignoring the exchange rate markup. A seemingly low fee can hide a poor exchange rate.

5. Check transfer limits and delivery times: Understand the minimum and maximum amounts you can send and how long it typically takes for the money to reach the recipient.

• What “good” looks like: Knowing if the provider meets your transfer amount needs and your recipient’s timeline.
• Common mistake: Assuming all transfers are instant or that there are no limits. This can cause issues for large sums or urgent needs.

6. Consider provider security and reputation: Look for providers regulated in their operating countries and read customer reviews.

• What “good” looks like: A provider with a strong track record, clear security measures, and positive customer feedback.
• Common mistake: Using an unknown or unregulated service. This puts your money at risk.

7. Choose your provider and initiate the transfer: Select the best option based on your comparison and begin the transfer process through their platform or branch.

• What “good” looks like: A smooth and secure initiation of the transfer, with clear instructions.
• Common mistake: Rushing the process. Take your time to ensure all fields are correctly filled.

8. Fund the transfer: Pay for the transfer using your chosen method (bank account, debit card, credit card, etc.).

• What “good” looks like: The transaction is confirmed, and you have a receipt.
• Common mistake: Using a payment method that incurs unexpected fees (like a credit card cash advance).

9. Track the transfer: Most services provide a tracking number or status updates.

• What “good” looks like: You can monitor the progress of your money from sending to receipt.
• Common mistake: Not tracking. This leaves you unaware if there are delays or issues.

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

• What “good” looks like: The recipient confirms the exact amount has arrived in their account.
• Common mistake: Assuming it arrived without confirmation. This can lead to situations where money is lost or delayed without your knowledge.

11. Keep records: Save confirmation emails, transaction IDs, and receipts for your personal financial records.

• What “good” looks like: A clear record of the transaction for tax purposes or if any disputes arise.
• Common mistake: Discarding transaction details. This makes it hard to resolve issues or track your spending.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not comparing exchange rates and fees	Overpaying significantly due to hidden costs and poor rates	Always use comparison tools and check the “all-in” cost before sending.
Incorrect recipient details	Delayed transfers, returned funds, or money sent to the wrong person	Double- and triple-check all recipient information for accuracy.
Using your bank without comparison	Higher fees and less favorable exchange rates compared to specialized services	Research and use dedicated money transfer apps or online platforms for better rates.
Ignoring transfer limits	Inability to send the desired amount or needing to split large transfers	Check provider limits before you start and plan accordingly.
Not understanding delivery times	Funds arrive too late for the intended purpose	Confirm delivery estimates and choose a provider that meets your urgency.
Using unregulated or unknown providers	Risk of losing your money or falling victim to fraud	Stick to reputable, regulated financial institutions and services.
Not tracking the transfer	Unawareness of delays or problems, leading to missed deadlines	Use the tracking feature provided by the service and follow the money’s progress.
Funding with a credit card cash advance	High fees and interest charges that negate transfer savings	Fund transfers from a bank account or debit card to avoid these extra costs.
Not confirming receipt	Uncertainty about whether the money arrived, potentially causing double payments	Always get confirmation from the recipient that the funds have been received successfully.
Sending without a clear purpose/budget	Financial strain and overspending	Only send what you can comfortably afford and ensure it aligns with your financial goals.
Not understanding currency fluctuations	The final received amount may differ from expectations due to market changes	Be aware that exchange rates can change; lock in a rate if possible or send when favorable.

Decision rules (simple if/then)

• If you need to send money urgently, then prioritize providers with the fastest delivery times, even if they have slightly higher fees, because time is critical.
• If you are sending a large amount, then research providers with lower per-transaction fees and higher transfer limits, because percentage-based fees can become very expensive.
• If you are sending money regularly, then consider setting up recurring transfers with a service that offers competitive rates for repeat customers, because it can save time and potentially money.
• If the recipient needs the money in a specific currency, then ensure the provider offers that currency and compare their exchange rate for it, because a poor rate can negate savings elsewhere.
• If you are unsure about a provider’s legitimacy, then do not use them and instead stick to well-known, regulated financial institutions, because your money’s security is paramount.
• If you are funding the transfer with a credit card, then check for cash advance fees and interest rates, because these can significantly increase the cost of your transfer.
• If you are sending money for a business expense, then keep detailed records and receipts, because this is important for accounting and tax purposes.
• If you are sending money to a country with currency controls, then research the specific regulations for that country, because there may be limitations or specific procedures to follow.
• If the exchange rate seems too good to be true, then be cautious, because it might be a sign of a scam or hidden fees.
• If you encounter any issues during the transfer, then contact the provider’s customer support immediately, because prompt communication is key to resolving problems.
• If you are sending a small, non-urgent amount, then compare providers based primarily on the lowest overall fees and best exchange rate, because cost efficiency is the main driver.
• If the recipient has specific bank requirements (e.g., IBAN, specific routing numbers), then verify that the transfer service can accommodate them, because mismatched details will cause delays.

FAQ

What is the cheapest way to send money internationally?

The cheapest way often involves using specialized online money transfer services or apps that compete on low fees and favorable exchange rates. Banks typically have higher fees and less competitive rates.

How long does it take to send money internationally?

Transfer times vary greatly, from minutes for some instant services to several business days for traditional bank wires or less common routes. It depends on the provider, destination country, and chosen transfer method.

Can I send money internationally using PayPal?

Yes, PayPal allows international money transfers, but it’s important to check their fees and exchange rates, as they may not always be the most competitive option compared to dedicated money transfer services.

What is an exchange rate markup?

An exchange rate markup is the difference between the mid-market exchange rate (the rate banks use to trade with each other) and the rate offered to you by a money transfer service. This difference is how many services make a profit.

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

Yes, most services have daily, weekly, or monthly transfer limits. These limits can vary by provider and your verification status. Larger amounts may require additional documentation.

What information do I need to send money to someone?

Typically, you’ll need the recipient’s full name, their bank name and address, and their account number. For some countries or services, you might also need a SWIFT/BIC code or an IBAN.

Is it safe to send money internationally online?

Reputable online money transfer services use strong encryption and security protocols to protect your transactions. Always choose services that are regulated and have good customer reviews.

What happens if I send money to the wrong account?

If you provide incorrect details, the money might be delayed, returned to you (often with fees), or in rare cases, sent to the wrong person. Contacting the transfer service immediately is crucial.

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

• Specific country regulations: Detailed rules for sending money to or from every single country.
• Next steps: Consult the official government or financial authority websites of the destination country.
• Tax implications of international transfers: Whether gifts or payments sent abroad are taxable events for you or the recipient.
• Next steps: Consult a tax professional or research IRS guidelines for international financial transactions.
• Business-specific international payment solutions: Advanced features for large-volume business transactions, like hedging or bulk payments.
• Next steps: Explore services specializing in corporate international finance or consult with a business banking advisor.
• Currency exchange futures or options: Complex financial instruments for hedging against currency fluctuations.
• Next steps: Consult with a financial advisor specializing in foreign exchange markets.