The main ways to move money across borders
You have four main routes to send money to a foreign bank account: a wire transfer through your US bank, a money transfer service like Western Union or Wise, a peer-to-peer payment app that handles international transfers, or a direct deposit arrangement if you receive regular payments. Each one differs in speed, cost, and how much information you need from the receiving bank.
A wire transfer through your bank is the most direct path. You contact your bank, provide the recipient's full name, bank account number, and routing information (called a SWIFT code or IBAN depending on the country), and your bank sends the money electronically. This usually takes one to three business days and costs between $15 and $50 per transfer. The receiving bank may charge a fee as well.
A money transfer service like Wise, OFX, or MoneyGram specializes in international payments and often charges less than banks for the same transfer. Wise, for example, uses the real exchange rate and charges a flat fee plus a small percentage. These services can be faster than banks—sometimes same-day—and work through their own app or website. You do not need to be a customer of any bank.
Some payment apps including PayPal, Square Cash, and Remitly now offer international transfers, though not all countries are supported. These are usually cheapest for small amounts under $500 and fastest for countries where the app has local partnerships. Larger transfers often route through the traditional banking system anyway, which slows them down.
Key Takeaways
- Wire transfers through your US bank are reliable but slow and expensive, taking one to three business days and costing $15 to $50 per transfer.
- Money transfer services like Wise often charge less than banks and move money faster, sometimes within hours, by using real exchange rates instead of bank markups.
- You will need the recipient's full legal name, bank account number, and either a SWIFT code (for most countries) or IBAN (for Europe and some others).
- Exchange rates vary by service and change throughout the day, so locking in a rate before you send protects you from price swings.
- The receiving bank may charge an incoming wire fee, which the recipient will see deducted from the amount that arrives.
What information you need from the receiving bank
Before you send anything, contact the person receiving the money and ask them for specific details about their bank account. You need their full legal name exactly as it appears on their account, their account number, and the bank's SWIFT code or IBAN. For some countries you may also need a branch code or routing number.
A SWIFT code is an eight or eleven-character code that identifies a specific bank and branch worldwide. Most banks outside the US use SWIFT codes. An IBAN (International Bank Account Number) is a longer code used mainly in Europe, the Middle East, and parts of Africa; it includes the country code, bank code, and account number all in one string. Some countries use both.
The recipient can find this information on their bank statement, in their online banking portal, or by calling their bank directly. Do not guess or use incomplete information—a wire sent to the wrong account number or bank code may be delayed for days while the receiving bank tries to sort it out, or it may be returned entirely.
How exchange rates and fees work
When you send money in US dollars to a country that uses a different currency, the money must be converted. The exchange rate you get depends on which service you use, and this is where costs add up fast.
Your US bank will convert at their own rate, which includes a markup of 1 to 3 percent above the real market rate. So if the real rate is 1 USD = 0.92 EUR, your bank might convert at 1 USD = 0.89 EUR, pocketing the difference. On top of that, they charge an outgoing wire fee of $15 to $50.
Money transfer services like Wise, OFX, and Remitly use the real market rate (also called the mid-market rate) with no markup, then charge a flat fee or a small percentage. Wise charges roughly 0.6 percent plus a small fixed amount depending on the currency pair. For a $1,000 transfer, this is often $10 to $15 total, compared to $40 to $70 through a bank.
Before you commit to a transfer, compare the final amount the recipient will receive across at least two services. Most let you enter the amount and see the exact fee and exchange rate before you confirm. Lock in the rate if the service offers it—rates move constantly, and locking protects you if the rate shifts before the money leaves your account.
Timeline: how long money takes to arrive
Speed depends on the service, the destination country, and whether the receiving bank processes transfers during business hours. Here is what to expect:
| Service Type | Typical Timeline | Notes |
|---|---|---|
| US bank wire transfer | 1–3 business days | Slower because it routes through multiple banks. Weekends and holidays add delay. |
| Wise or OFX | Same day to 2 business days | Faster for major currencies and countries with local banking partnerships. |
| PayPal or Remitly | 1–3 business days | Depends on the destination country and whether the recipient has a local account set up. |
| Western Union or MoneyGram | Minutes to 1 business day | Fastest for cash pickup; slower if going to a bank account. |
If you are sending money on a Friday afternoon, do not expect it to arrive until Tuesday or Wednesday. Banks do not process international transfers on weekends or holidays, and some countries have their own public holidays that pause processing.
Once you initiate a transfer, you should receive a confirmation number or reference code. Save this—if the money does not arrive within the expected timeframe, you will need it to track the transfer or file a complaint.
Setting up recurring transfers or direct deposit
If you send money to the same person or account regularly—for example, to support family abroad or pay a contractor—you can set up a standing order or recurring transfer through your bank or a money transfer service. This saves you from entering the details every time and sometimes reduces the per-transfer fee.
Most banks let you create a standing order through online banking. You enter the recipient's details once, set the amount and frequency (weekly, monthly, etc.), and the bank processes it automatically. Some banks charge a small fee for standing orders; others do not.
Money transfer services like Wise and Remitly also offer recurring transfers. These often have lower fees than one-time transfers because the service knows the money is coming regularly and can plan for it.
If you receive regular payments from abroad—a salary, pension, or business income—ask the payer to set up a direct deposit to your US bank account instead of sending wire transfers. This is usually free or very cheap on their end and arrives faster because it is treated as a domestic transfer in their country.
What to do if a transfer goes wrong
Money can get stuck or lost for several reasons: a typo in the account number, a mismatch between the account number and the recipient's name, a bank code that does not match the account, or a receiving bank that rejects the transfer for compliance reasons.
If money does not arrive within the expected timeframe, contact the service or bank you used and provide your confirmation number. They can check the status and tell you whether the money is still in transit, has been rejected, or is being held for review. If it was rejected, the money will be returned to your account, usually within five to ten business days.
If the money was sent to the wrong account, recovery is harder. Some banks can attempt to retrieve it, but this requires the receiving bank's cooperation and can take weeks. This is why confirming the account details before you send is critical.
Keep records of every transfer: the confirmation number, the amount sent, the exchange rate, the date, and the recipient's account details. If a dispute arises, you will need this documentation.
Choosing between a bank and a money transfer service
Use your bank if you need the transfer to be documented for legal or tax reasons, or if the receiving bank requires a wire transfer specifically. Banks create a formal paper trail that some businesses and government agencies require.
Use a money transfer service if cost and speed matter more than formality. For most personal transfers, a service like Wise will save you $20 to $50 per transfer and get the money there faster. Services are also simpler if you do not have a bank account or prefer not to use your bank for international transfers.
Use a payment app if you are sending a small amount (under $500) to someone in a country the app supports, and you both already use the app. The fees are lowest and the process is fastest.
If you are sending a large amount (over $10,000), your bank must report it to the US Treasury under anti-money-laundering rules. This does not prevent the transfer, but it does mean paperwork and possible delays. Money transfer services have the same reporting requirement, so there is no way to avoid it.
Frequently Asked Questions
Do I need a special bank account to send money abroad?
No. Any US checking or savings account can send a wire transfer. If you use a money transfer service, you do not need a bank account at all—you can fund the transfer with a debit card or credit card. Some services also let you transfer from a PayPal balance or other digital wallet.
What is the difference between a SWIFT code and an IBAN?
A SWIFT code identifies the bank and branch. An IBAN is a longer code that includes the country, bank, and account number all together. Most countries use SWIFT codes; Europe and some others use IBANs. Some banks use both. Ask the recipient which one their bank requires.
Can I cancel a transfer after I send it?
It depends on how far the money has traveled. If you cancel within minutes of sending, most services can stop it. Once the money has left your bank or service and entered the receiving bank's system, cancellation is usually not possible. Contact the service immediately if you need to cancel.
Will the recipient have to pay taxes on money I send them?
That depends on the country and the reason for the transfer. Money sent as a gift is usually not taxable to the recipient. Money sent as payment for work or business may be. The recipient should check the tax laws in their country. You do not owe US tax on money you send abroad, but you may owe tax on income you earn abroad.
What happens if I send money to the wrong account?
Contact the service or bank immediately with your confirmation number. If the receiving bank has not yet processed the transfer, it may be able to stop it. If it has been processed, the receiving bank can attempt to retrieve the money, but this requires their cooperation and can take weeks. This is why confirming details before sending is critical.