How to Transfer Money Abroad: Methods, Costs, and What to Expect

The main ways to send money internationally

You have four main routes to move money out of the United States: a wire transfer through your bank, a money transfer service like Western Union or MoneyGram, an international payment app, or a peer-to-peer transfer service. Each one works differently, costs different amounts, and takes a different amount of time. Your choice depends on how much you're sending, where it's going, how fast you need it to arrive, and how much you want to pay in fees.

A wire transfer is the most common method for larger amounts. Your bank sends the money directly to a bank account in another country using the SWIFT network (the international banking system). A money transfer service like Western Union lets the recipient pick up cash at a physical location instead of needing a bank account. International payment apps like Wise (formerly TransferWise) and PayPal convert your money and deposit it into a foreign bank account, often with lower fees than banks charge. Peer-to-peer services like Remitly and OFX connect you to people sending money the same direction, which can lower costs.

Key Takeaways

• Wire transfers through your bank are reliable for large amounts but charge $15 to $50 per transfer and take one to three business days.
• Money transfer services like Western Union let recipients pick up cash but charge higher percentages (3% to 10%) and are best for smaller amounts.
• International payment apps like Wise offer the real exchange rate with a small markup and are fastest for bank-to-bank transfers.
• You will need the recipient's bank details (account number, routing number, SWIFT code) for most methods, or their location for cash pickup.
• Exchange rates vary by provider and change throughout the day, so the amount your recipient gets depends on when you send and which service you use.

Wire transfers: How your bank sends money abroad

A wire transfer is an electronic payment your bank sends directly to another bank using the SWIFT system. You go to your bank (in person, online, or by phone), provide the recipient's bank details, and your bank deducts the money from your account and sends it to the foreign bank. The receiving bank deposits it into the recipient's account there.

You will need the recipient's full name, bank account number, the name and address of their bank, and the bank's SWIFT code (an eight- or eleven-character code that identifies banks internationally). Some banks also ask for an IBAN (International Bank Account Number), which is standard in Europe and some other regions. Ask your recipient to get these details from their bank or bank statement.

Wire transfer fees from U.S. banks typically range from $15 to $50 per transfer, depending on your bank and whether the receiving bank charges a fee on their end (which the recipient may pay). The transfer usually takes one to three business days, though some corridors (common routes like U.S. to Canada or U.S. to Mexico) can be faster. The exchange rate your bank uses is usually not the real market rate — banks add a markup of 1% to 3%, meaning your recipient gets less than they would with a service that uses the real rate.

Money transfer services: Cash pickup and higher fees

Services like Western Union, MoneyGram, and Ria let you send money that the recipient picks up as cash at a physical location (a Western Union office, grocery store, or partner business) rather than depositing it into a bank account. You can start the transfer online, by phone, or in person at a location. The recipient needs only your name, a reference number, and a valid ID to collect the cash.

These services charge higher fees than banks or apps — typically 3% to 10% of the amount you send, depending on the destination country and how much you're sending. A $500 transfer might cost $25 to $50. The exchange rate also includes a markup. Money usually arrives within minutes to a few hours, making this the fastest option if the recipient needs cash when ready.

Money transfer services are most useful for smaller amounts, emergencies, or when the recipient does not have a bank account. For regular or large transfers, the fees add up quickly. Compare the total cost (fee plus the exchange rate markup) across services before you send, because rates and fees vary significantly by destination.

International payment apps: Lower fees and real exchange rates

Apps like Wise, OFX, and Remitly connect directly to the banking system and often charge lower fees than traditional banks or money transfer services. Wise, for example, charges a small percentage (usually 0.5% to 2%) plus a small fixed fee, and uses the real mid-market exchange rate with only a tiny markup. You link your U.S. bank account, enter the recipient's bank details, and the money moves to their account.

These services work best for bank-to-bank transfers and are usually cheaper than wire transfers for amounts under $10,000. Transfer times vary: some apps deliver within hours, others take one to two business days. The recipient must have a bank account in their country, so this does not work if they need cash pickup.

To use an international payment app, you create an account, verify your identity (usually by uploading a photo ID), link your U.S. bank account, and enter the recipient's bank details. The app shows you the exact fee and exchange rate before you confirm, so you know exactly what your recipient will receive.

Peer-to-peer and specialized services

Some services like Remitly, WorldRemit, and Wise focus on specific corridors (common routes like U.S. to Mexico or U.S. to the Philippines) and offer competitive rates because they match senders and receivers going the same direction. This balances currency flows and lowers costs. These services often combine bank transfer and cash pickup options.

Specialized services also exist for particular situations: some focus on sending to specific countries, others on business payments, and others on moving large amounts. If you send money to the same country regularly, research services that specialize in that route — they often have better rates than general-purpose options.

What information you need before you send

For a bank-to-bank transfer, you need the recipient's full name (exactly as it appears on their bank account), their bank account number, their bank's name and address, and the bank's SWIFT code. In Europe and some other regions, you also need the IBAN. Ask your recipient to provide these details from their bank statement or by calling their bank — getting them wrong can delay or misdirect the transfer.

For cash pickup through Western Union or MoneyGram, you need only the recipient's full name and the country and city where they will pick up the money. You will receive a reference number to give them.

For international payment apps, you need the recipient's bank account number, bank name, and sometimes their address. The app will tell you exactly what information is required for that specific country.

Exchange rates and hidden costs

The exchange rate you see online (the "mid-market rate") is the real rate banks use to trade currencies. However, most services do not give you that rate — they add a markup of 0.5% to 3% or more. A bank wire might add 2%, while an international app might add 0.5%. Over time, this difference adds up significantly.

Beyond the exchange rate markup, watch for these costs: a flat transfer fee (charged by your bank or the service), a receiving fee (charged by the recipient's bank, sometimes passed to you), and a percentage fee (a percentage of the amount you send). Some services bundle these into one fee; others charge them separately. Before you send, ask the service to show you the total cost and the exact amount your recipient will receive.

Exchange rates change throughout the day. If you lock in a rate with an app like Wise, you have a set window (usually 24 to 48 hours) to complete the transfer at that rate. If you wait longer, the rate may change.

How long transfers take and what can go wrong

Wire transfers through banks typically take one to three business days, though some take longer if the receiving bank is in a country with slower banking infrastructure. Money transfer services (Western Union, MoneyGram) deliver within minutes to a few hours. International apps vary: some deliver within hours, others take one to two business days.

Transfers can be delayed or rejected if the recipient's bank details are wrong, if the amount triggers anti-money-laundering checks, or if there is a mismatch between the name on the sending account and the name on the receiving account. If a transfer is rejected, the money returns to your account, but this can take several days.

If you send money and it does not arrive within the promised timeframe, contact the service or your bank when ready. They can trace the transfer using the reference number or SWIFT details. Keep your confirmation email or receipt until the money arrives.

Frequently Asked Questions

What is the cheapest way to send money abroad?

International payment apps like Wise usually offer the lowest total cost for bank-to-bank transfers because they charge small fees and use the real exchange rate with minimal markup. For cash pickup, money transfer services are the only option, but they charge higher fees. For very large amounts, compare wire transfer fees at your bank against app fees — sometimes a bank wire is cheaper despite the higher percentage.

Can I send money to someone without a bank account?

Yes, through money transfer services like Western Union and MoneyGram, which let the recipient pick up cash at a physical location. You can also send to a mobile money service in some countries (like M-Pesa in Kenya), which does not require a traditional bank account. Ask the recipient which option is available in their area.

How much money can I send at once?

Limits vary by service and by country. Banks typically allow wire transfers of $10,000 or more without special documentation, though larger amounts may trigger reporting requirements. Money transfer services often have daily or per-transaction limits (sometimes $2,500 to $10,000). International apps usually allow larger amounts. Check your specific service's limits before you send.

Do I pay taxes on money I send abroad?

Sending money abroad is not a taxable event for you — you are moving your own money, not receiving income. However, if the money is a gift, the recipient may owe taxes on it depending on their country's laws. If it is payment for work or services, different rules explore. Consult a tax professional if you are unsure.

What happens if I send money to the wrong account?

If the account number is wrong, the receiving bank will usually reject the transfer and return the money to you, though this can take several days. If the account number is correct but belongs to someone else, the money may be deposited into that account, and recovering it is difficult. Always double-check the recipient's account details before you send, and ask them to confirm the details are correct.