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4 best ways to transfer money internationally
Every year, people in the U.S. send billions of dollars abroad.
Despite the many hurdles involved with transferring money internationally — including fees for both the sender and recipient, security issues, and shifting exchange rates — adults in the U.S. have a strong motivation. In most cases, the money is sent home to help parents or siblings pay for necessities like healthcare, food, and housing.
Best ways to transfer money internationally
Finding the right method for sending your money abroad can be a challenge. What's the best service to use? The answer depends on a combination of security, fees, speed, and your preferences.
Here are four options to consider.
1. Bank to bank
One of the most secure ways to send money internationally is to transfer it from your bank to another bank, also known as a wire transfer. Even PayPal, which offers several different digital money transfer services, suggests that wire transfers are ideal for sending money internationally.
Your bank may also offer international ACH transfers, which give you a few additional security-related advantages:
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You can potentially reverse a payment if needed
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Wire transfers are difficult for scammers to use
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Transactions are protected under federal law
However, there are drawbacks. Banks don't typically have the lowest fees or fastest turnaround times for sending money. It may take as long as five business days for the recipient to get access. Additionally, not all banks let you set up transfers online; some require a branch visit.
Read more: How long does a bank transfer take?
2. Money transfer service
Depending on your situation, you might want to use a licensed money transfer service such as Wise or MoneyGram instead of your bank. Here's when this could be the best choice:
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The recipient doesn't have a bank account
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You want lower fees than a bank
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You need to make a (nearly) instant transfer
If you go through Western Union, for example, your recipient doesn't have to pick up the money at a bank. They can visit one of the company's physical locations or use the Western Union app.
With MoneyGram, you can send the money to a mobile wallet. Just be sure to check the fees for different payment cashing and delivery methods before sending, regardless of which service you use.
Another way to keep your costs low with a money transfer service is to never send the money with your credit card. If you do, your creditor can process the payment as a cash advance, which is a high-cost loan against your available credit.
Also, keep in mind that it's nearly impossible to reverse a money transfer, even if you make an error when setting up the payment or you detect fraud. That's one reason money transfer services are popular with scammers.
Read more: 7 common banking scams (and how to avoid becoming a victim)
3. Digital payment app
To send money abroad instantly, you can use a peer-to-peer payment app such as PayPal or PayPal's Xoom. Just make sure to check how long it will take for the money to be accessible to the recipient, since it could take a few business days.
A payment app can be your best option for sending money if the recipient lives in a rural area and doesn't have access to any banks or retail locations that handle money transfers.
Fees vary by destination, however, which means it could be pricey to send money to another country this way. Additionally, the transfer limit on the app might be low in comparison to a bank wire, so this option can get expensive if you need to send smaller but more frequent transfers.
When it comes to your level of security, it varies by app. But it's safe to assume you can't get your money back once you send it, even if you sent money to the wrong person.
Read more: What to do if you sent money to the wrong person on Cash App, Zelle, or Venmo
4. Money order
If the recipient doesn't have a bank account or access to a payment app, you might consider mailing them a money order.
Just make sure your recipient has local access to a retailer or bank that cashes money orders first. They should also compare exchange rates and fees, which will vary by location.
Naturally, this form of payment is slow, and the money order can be stolen, but you can also get a refund if it hasn't been cashed yet.
Where can you get a money order? The U.S. Postal Service no longer sells international money orders, but some banks offer them for free, including Chase. If your bank doesn't, you can go to Walmart and pay a $1 fee, or pay anywhere up to $10 elsewhere.
Options to avoid when sending money internationally
When you're weighing options for sending money abroad, it's important to avoid methods that could be risky or downright dangerous. Here are some ways you should not send money abroad:
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Cash: The U.S. Department of State does not recommend mailing cash abroad, even for emergencies. In addition to being very slow, there's zero protection against theft or loss.
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Credit cards: Sending money from your credit card should be treated as a last option for emergencies since it may be considered a cash advance. If it is, you'll be charged a 3% fee from the creditor and around 30% APR on the transferred amount, with interest accruing from the date you send the money until you pay the full transfer balance back on the card.
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Cryptocurrency: Cryptocurrency transactions should be considered with caution. The transaction can be completed in minutes, but there are no regulations to protect you if you send money to the wrong person. You can also face losses from having a second currency exchange rate (USD to crypto and crypto to local currency), and there can be unpredictable transaction fees.
What you need to know before sending money internationally
With your money on the line, it's important to be selective about who you trust with the transaction.
The FTC advises against sending money to anyone you haven't met in person. But in addition to knowing the recipient, you also need to know what you're getting into with the sending agency. These are the questions you need to have answered before you send money through any agency:
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Can I send money to the desired destination?
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What is the transfer limit?
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When will the recipient have access?
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Am I getting the real-time exchange rate?
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What taxes and fees will the recipient and I pay?
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What amount will the recipient get?
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Where and how can the recipient access the funds?
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How can I cancel a transfer if desired?
Read more: Can non-U.S. citizens open a bank account?
