Sending money abroad: Methods, tips, and best practices

The best banks offer an easy way to send money abroad to family members or friends via a wire transfer.

An international wire transfer is done electronically and usually gets processed in a few days. They require certain bank information about the recipient to be completed.

Traditional bank wire transfers

Most banks or credit unions let you make international wire transfers, or remittances, for a fee. You decide how the recipient will receive the money and then pay a wire transfer fee — usually around $45 to $50 — to initiate the transfer.

There are a few financial institutions that have free international wire transfers. For example, Bank of America won't charge you any fees if you send money to a bank account in foreign currency, though you'll have to pay the exchange rate first. Chase also won't charge a fee for international wire transfers of $5,000 or more that are sent in foreign currency.

International wire transfers can take two to five business days, depending on the amount being transferred and where it's going.

Sending or receiving money internationally requires specific banking information, including:

• Money (in U.S. dollars or foreign currency) that will be transferred
• The full name and address of the person receiving the money
• The name of the recipient's bank and International Bank Account Number (IBAN)
• A SWIFT code or Bank Identification Code (these codes verify the transaction, so this information is important)

Certain countries will require additional documentation. Australia, Canada, Great Britain, India, Mexico, and New Zealand are a few countries that will ask for supplementary codes. If you're sending money to someone who lives in one of these countries, you may want to reach out to the recipient or the recipient's bank to get the information.

You may also need to select a description for the transfer from a drop-down menu, or write your own description.

Money-transfer services

Money-transfer services such as MoneyGram or Western Union can be a simple and more affordable way to send money internationally with or to someone without a bank account. You can create an online account or visit a storefront and pay cash to set up a transfer.

Alternatives include digital platforms, such as Xoom (a PayPal service) and Wise (formerly TransferWise), which use different payment processing methods that can result in lower fees than traditional banks.

Factors to consider when sending money

Transfer fees

The World Bank reports that the global average cost to send money internationally is just over 6% of the transfer amount. Check out a few different services in addition to your bank to see which charges the lowest fees.

Exchange rates

Verify a service's exchange rate before setting up an international transfer. The "mid-market exchange rate" is the rate big banks use to transfer money between currencies. Many money transfer services will charge this rate, plus a markup, which eats into the amount your recipient will get.

Transfer time

Some money-transfer services will let you expedite your transfer for an additional fee. However, time zones and the method of payment can affect how quickly your recipient gets the money. For example, if you send money from the U.S. to Europe on a Friday afternoon, it may be a few days until the transfer is complete.

Transfer cancellation policies

You may need to cancel an international wire transfer after you make it. According to the Consumer Financial Protection Bureau, customers can cancel an international wire transfer at no charge if they meet the following conditions:

• The wire transfer was initiated through a remittance transfer provider, as defined by federal law
• The money has not been picked up or deposited
• The transfer was paid for less than 30 minutes ago
• Enough information is given to the provider to locate the transfer

For international wire transfers scheduled ahead of time, cancellations may be allowed up to three days before the transfer is made. However, state laws or specific provider rules may allow for more time to cancel.

Avoiding scams and fraud when sending money abroad

The Federal Trade Commission says you should never wire money to someone you haven't met in person. A request to do so is usually a scam. Additionally, never wire money to a person who claims to work for a government agency or a salesperson who insists that wiring money is the only way to pay.

Sending money internationally FAQs