The main ways to transfer money abroad
You have four main routes to move money from a US bank account to an international one: a wire transfer through your bank, a money transfer service like Wise or OFX, a peer-to-peer app like PayPal, or a cash pickup service. Each one has different costs, speed, and exchange rates. Your choice depends on how much you're sending, how fast it needs to arrive, and whether the recipient has a bank account or needs cash.
Wire transfers are the oldest method and still the most common for large amounts. Money transfer services are usually cheaper for smaller sums and give you better exchange rates. Apps are fastest for small personal transfers. Cash pickup works when the recipient doesn't have a bank account or doesn't trust electronic transfers.
The wrong choice can cost you 5 to 10 percent of what you're sending in fees and bad exchange rates combined. Knowing what each method actually costs before you start matters more than speed.
Key Takeaways
- Wire transfers through your bank are reliable but expensive, usually costing $15 to $50 per transfer plus a poor exchange rate, and take one to three business days.
- Money transfer services like Wise, OFX, and Remitly charge lower fees (typically $2 to $15) and offer better exchange rates, making them cheaper for most transfers under $10,000.
- You will need the recipient's full name, bank account number, routing or SWIFT code, and bank address—getting these details wrong delays or blocks the transfer.
- Exchange rates vary by provider and change throughout the day, so comparing rates from multiple services before sending can save hundreds of dollars on large transfers.
- Some countries restrict which banks and services can receive transfers, so confirming the recipient's bank accepts international deposits before you send is essential.
Wire transfers through your US bank
A wire transfer is an electronic movement of money directly from your bank to the recipient's bank overseas. You initiate it at your bank's branch, online, or by phone. Your bank sends the money through SWIFT (the international banking network) or through a correspondent bank relationship.
Wire transfers are slow and expensive. Fees range from $15 to $50 depending on your bank and whether the transfer is domestic or international. The exchange rate your bank gives you is usually 1 to 3 percent worse than the mid-market rate—meaning you lose money on the conversion itself. A $5,000 transfer can easily cost you $100 to $200 in combined fees and rate markup.
Timing is one to three business days, sometimes longer if the receiving bank is in a country with slower banking infrastructure or if your bank needs to route the money through a correspondent bank first. You need the recipient's full name, account number, bank name, SWIFT code (an eight or eleven-character code that identifies the bank internationally), and sometimes the bank's address.
Wire transfers are most useful when you need the money to arrive at a specific bank account and you have no other option, or when you're sending a very large amount and your bank has a relationship with the receiving bank that speeds things up.
Money transfer services: cheaper rates and lower fees
Money transfer services like Wise, OFX, Remitly, and MoneyGram are companies built specifically to move money across borders cheaply. They don't use SWIFT; instead, they hold accounts in multiple countries and move money between their own accounts, then pay out to the recipient's local bank. This is faster and cheaper than wire transfers.
Fees are typically $2 to $15 per transfer, and the exchange rate is much closer to the real mid-market rate—often within 0.5 percent. On a $5,000 transfer, you might pay $10 to $20 total instead of $100 to $200. The tradeoff is that most services have daily or monthly sending limits, usually $5,000 to $50,000 depending on the service and your account history.
Speed varies. Wise and OFX often deliver within one business day. Remitly and MoneyGram may take one to three business days. Some services offer a faster option for a higher fee. You still need the recipient's bank details, but the process is simpler because you enter everything online and the service checks it before you send.
These services work best for regular transfers, smaller amounts, and situations where you want to keep costs down. They're also useful if you're sending to a country where your US bank has no direct relationship—the service handles the routing for you.
Peer-to-peer apps and digital wallets
Apps like PayPal, Wise, Square Cash, and Venmo let you send money to someone with an account on the same platform. If the recipient has a PayPal account, you can send them money in minutes. They then withdraw it to their local bank account, which takes another one to three business days depending on their country.
Fees are low or zero if you're both in the same country, but international transfers through these apps usually cost $3 to $10 and the exchange rate markup is moderate. Speed is fast for the app-to-app part (minutes to hours), but the final withdrawal to their bank account depends on their local banking system.
The main limitation is that both you and the recipient need accounts on the same platform. This works well for sending money to friends or family who are tech-comfortable, but not for paying a business or someone without a smartphone. Some apps also have lower limits on international transfers—often $2,000 to $5,000 per transaction.
Cash pickup services for recipients without bank accounts
Services like Western Union and MoneyGram let you send money that the recipient picks up in cash at a local agent location. You send the money online or at a physical location, and the recipient goes to a participating store or bank branch to collect it.
Fees are higher than bank transfers—typically $5 to $30 depending on the amount—and the exchange rate is poor. The advantage is that the recipient doesn't need a bank account. This is useful for sending money to rural areas, countries with weak banking infrastructure, or situations where the recipient doesn't trust electronic transfers.
Pickup usually happens within minutes to a few hours of sending. You need the recipient's full name and the country and city where they'll pick up the money. They need a valid ID to collect it. Some services require you to answer security questions that the recipient must answer to prove they're authorized to pick up the money.
What information you need before you send
The details you need depend on the method, but for bank-to-bank transfers you'll need: the recipient's full legal name (exactly as it appears on their bank account), their account number, their bank's name, the bank's SWIFT code or routing number, and sometimes the bank's address or branch code. Getting any of these wrong can delay the transfer by days or send the money to the wrong account.
Ask the recipient to provide these details from their bank statement or by logging into their online banking. Don't guess or abbreviate. A bank name like "Banco Nacional" might have dozens of branches, and each one has a different SWIFT code. If you're unsure, ask the recipient to confirm the details with their bank before you send.
For money transfer services and apps, you usually only need the recipient's name and email or phone number, since the service handles the banking details on their end. For cash pickup, you need the recipient's full name and the city where they'll pick up the money.
Comparing costs across methods
| Method | Typical Fee | Exchange Rate Quality | Speed | Best For |
|---|---|---|---|---|
| Wire transfer (bank) | $15–$50 | Poor (1–3% markup) | 1–3 days | Large amounts, specific bank requirement |
| Money transfer service | $2–$15 | Good (0.5% or less) | 1–3 days | Regular transfers, any amount under limits |
| Peer-to-peer app | $3–$10 | Moderate (1–2% markup) | Minutes to hours | Small personal transfers, both have accounts |
| Cash pickup | $5–$30 | Poor (2–4% markup) | Minutes to hours | Recipient without bank account |
On a $1,000 transfer, a wire transfer might cost you $50 to $80 total (fee plus rate markup). The same transfer through Wise or OFX might cost $5 to $10. On a $10,000 transfer, the difference is $200 to $400. Always check the exact fee and rate from each service before you commit, because rates change throughout the day and fees vary by destination country.
What to do if the transfer doesn't arrive
If money doesn't show up within the expected timeframe, first contact the service or bank you sent it through and ask for a trace. Provide your confirmation number and the recipient's bank details. The service will check whether the money left your account (it should have) and where it went.
Common problems are a typo in the recipient's account number, a SWIFT code that doesn't match the bank name, or the receiving bank rejecting the transfer because it doesn't match their account holder's name. If the receiving bank rejects it, the money usually comes back to your account within five to ten business days, though some banks charge a fee for the reversal.
If the money has been missing for more than a week, file a formal complaint with your bank or service. Keep all confirmation emails and receipts. If the money was lost due to the service's error, they are usually liable to refund you, but you may need to provide documentation of the loss.
Frequently Asked Questions
Can I send money to any country?
Most services can send to 100+ countries, but some countries have restrictions due to sanctions, banking relationships, or local regulations. Check the service's list of supported countries before you start. If your destination country isn't listed, try a different service—Wise supports different countries than MoneyGram, for example.
What's the difference between a SWIFT code and a routing number?
A routing number is a nine-digit code used for transfers within the US. A SWIFT code is an international bank identifier used for transfers outside the US. If you're sending to a bank outside the US, you need the SWIFT code. If the bank is in the US but the recipient is abroad, you may need both.
How long does an international transfer actually take?
Wire transfers take one to three business days, sometimes longer if the receiving country has slower banking systems. Money transfer services often deliver within one business day. Apps and cash pickup are fastest—minutes to hours. Weekends and holidays add delays because banks don't process transfers on those days.
Do I pay taxes on money I send abroad?
Sending money abroad is not a taxable event—you're moving your own money, not earning income. However, if you're sending money as a gift, the recipient may owe taxes on it depending on their country's laws. If you're sending money for business, keep records of what it was for. Consult a tax professional if you're unsure.
What happens if I send money to the wrong account by mistake?
If you sent it to a real account at the correct bank but with the wrong account number, the receiving bank may reject it and send it back. If the account number happens to match someone else's account, the money goes to them and recovering it is difficult—you'd have to contact that person or pursue a legal claim. Always double-check the account number before you send.