The fastest way to transfer money from one bank directly to another is through wire transfers. It’s relatively easy to do within the U.S. but how about if you need to send money abroad? International transfers may require a few more steps, but most banks and online services can take care of them for you.
Discover the most convenient and best ways to send money overseas.
The Key Takeaways
- Bank-to-bank transfers are a fast, reliable and simple way to send money abroad.
- Compare all costs including fees and exchange rates before choosing a wire transfer service provider.
- Online transfer services and PayPal are alternatives to wire transfers between banks.
When do you need to wire money internationally?
wire transfer is a great option for large amounts of money. It is a fast transfer, and there’s no need to worry about your checks getting lost or bouncing.
Note:
Sending money to someone you do not know is a bad idea, especially if it’s via wire transfer. These payment methods are often used by con artists to ask for money. It can be hard or impossible to retrieve your money after sending it.
When you are traveling overseas or need to support loved ones abroad, international transfers can be a good option. If you’re making small purchases in another country, credit cards work fine. But if you want to send large amounts abroad, wire transfers are the best option. They can be done safely and quickly.
How to Transfer Money Overseas
Wire transfers are electronic transfers of funds between banks. A wire transfer is an electronic transfer of funds between banks.
Contact your bank to send money abroad via wire transfer. You will need to fill out a request , and provide information about the person or organisation you are sending money to. You can submit your request online. However, you may need to fill out a form. You may be charged a fee for transferring money. Be sure to keep extra funds on hand to cover these costs.
Prepare yourself with the following:
- Name of the recipient
- Receive bank’s address and name
- Account type and recipient’s account number, including IBAN
- Receive SWIFT IDs or BICs from banks
- Transferring in U.S. Dollars or Foreign Currency
Note:
It is possible that you will need to provide more information. You should carefully follow the instructions provided by the recipient’s bank.
Compare your international transfer options
Find the best service provider to transfer money to another country. Below are some of the most critical factors.
Cost
Money transfer overseas is usually expensive. A transaction fee may be charged, either as a fixed dollar amount or percentage of the total transfer. To determine the best billing method, compare different methods of charging for large and small transfers.
Exchange Rates
Exchange rate is a part of your overall cost. However, the amount that you pay may not appear as a transaction line item. Some providers offer better exchange rates than others.
Note:
Compare vendors by paying attention to the exchange rate as well as any flat fees. A small flat rate with a bad exchange rate may be more expensive for a large transfer than a larger flat fee at a better rate.
Transfer Time
Transfers overseas can take a few days depending on which service you choose. It’s important to remember that financial transactions can take longer than expected. You should always leave some buffer for these situations.
Transaction Limits
Verify that the service you prefer can handle a large amount. Some services limit your transfers to small amounts, while others let you send large amounts.
Country-specific availability
The location of the recipient may affect which service you choose. You shouldn’t encounter any problems, as large banks and money-transfer services serve more than 100 countries. In rare cases, however, you might need to look for a service provider that offers services in a particular country.
The Best International Wire Transfer Services
Your Bank or Credit Union
You can start by checking your bank or credit union account. Costs can range between free and $45, with a typical official wire transfer as described.
You might be able to justify a modest transfer fee if you do not plan on making frequent transfers. Just make sure the exchange rate remains reasonable. It might not be worth your time to open new accounts with lower transaction fees or comparable exchange rates if you are only going to make a transfer every few years.
Chase Bank is one example of a bank that offers free international wire transfer if you send $5,000 and complete the online request. You can send money to more than 90 countries. The fee for sending less than $5,000 is $5. According to Chase, funds should be available in three to five business days.
Traditional Money Centers
Money centers such as Western Union and MoneyGram are a good option if you prefer in-person service. These money transfers may not be the same as wire transfers between banks, but they allow for fast transfers abroad.
Western Union charges a range of fees for a $1,000 transfer, depending on the method used to fund it and the way the money is delivered. Payees may receive money in their bank accounts or cash at retail locations, sometimes within minutes. Western Union has over 200 countries on its list of partners.
Note:
When comparing options, be sure to pay attention the exchange rate. The exchange rate may vary depending on the way you fund your transfer, or the method by which funds are received by the recipient.
Online International Transfer Services
Online services are available for international money transfers. These services allow you to fund international transfers using ACH transfers, bank wires, or payments by card. These services are geared towards international transfers and can transfer money quickly, sometimes the same day.
Note:
Calculators are available from many online money transfer services to help you estimate the cost. Here’s a calculator from Wise. You can then choose the service that best suits your needs, and often, the entire process can be completed online.
Wise (formerly TransferWise) and Xoom, are popular choices, but there are many others. Wise charges both a fixed fee, which is based on your payment method and a variable fee, based on how much you are transferring. According to the company, it uses an exchange rate based off of data from Reuters. You can send any amount you want, as there are no limits. Wise is available in 61 different countries.
P2P Payment Tools
You can send money to another country if you have an account with a service like PayPal. Personal payments are usually free within the U.S., but you have to pay to send them to other countries. PayPal charges a fee of $4.99 or 5% for the majority of personal payments. There may also be a fixed fee depending on the currency.
PayPal may also charge a spread when you convert currencies. PayPal doesn’t limit the amount you can send. However, each transaction is limited. It may be necessary to split large transfers up into several transfers. Bank transfers to PayPal and back can take a few days. You may pay a fee to get accelerated service. PayPal is available across 200 countries.
Bottom Line
Electronic transfers are fast and safe. You will have to pay for fees and you should be aware of hidden costs, such as an unfavorable currency exchange rate. It pays to compare different vendors, as with any financial transaction.
