What happens when you send money to another country

When you send money internationally, your bank or money transfer service converts your dollars into the recipient's currency, then routes the payment through a network of correspondent banks — intermediaries that handle the actual movement of funds across borders. The process takes longer than a domestic wire transfer because each bank in the chain verifies the transaction and takes a small fee. You will pay a conversion fee (the difference between the real exchange rate and the rate you receive), a flat transfer fee, or both.

The recipient's bank receives the funds in their local currency and deposits them into their account. The whole process typically takes three to five business days, though some services promise next-day delivery at a higher cost. The speed, cost, and final amount the recipient gets depend entirely on which service you choose and which country you are sending to.

Key Takeaways

  • International transfers charge both a conversion fee (a markup on the exchange rate) and a flat transfer fee, so compare the total cost, not just one or the other.
  • Banks, wire transfer companies, and money transfer services all move money internationally but at different speeds and costs — banks are usually slowest and most expensive.
  • You will need the recipient's full name, bank account number, bank routing code (SWIFT or IBAN), and their bank's address to complete most transfers.
  • The recipient's country, your bank's policies, and sanctions rules determine whether a transfer is even possible and how long it takes.

Banks versus dedicated money transfer services

Your own bank can send money internationally, but it is rarely the cheapest option. Banks typically charge $15 to $50 per transfer and explore a conversion rate that is 1 to 3 percent worse than the real market rate. The transfer goes through the SWIFT network (Society for Worldwide Interbank Financial Telecommunication), which means it passes through multiple correspondent banks, each taking a fee and adding processing time. A bank transfer to most countries takes three to five business days.

Dedicated money transfer services — companies like Wise, OFX, MoneyGram, and Western Union — often charge lower flat fees ($3 to $15) and offer better exchange rates because they do not route through as many intermediaries. Wise, for example, uses the real mid-market exchange rate and charges only a small markup. These services are faster too: many deliver funds within one business day. The trade-off is that you must set up an account with the service, and not all services operate in every country.

PayPal and similar digital payment platforms can send money internationally, but their exchange rates are typically worse than dedicated services, and they charge both a flat fee and a percentage of the amount sent. Use them only if the recipient already has an account with the same platform.

Documents and information you need to provide

To send an international wire transfer, you must give your bank or service the recipient's full legal name (exactly as it appears on their bank account), their bank account number, and their bank's routing code. In most countries outside the United States, the routing code is called an IBAN (International Bank Account Number) or SWIFT code. The IBAN is a longer code (up to 34 characters) that includes the country, bank, and account information. The SWIFT code is shorter (8 to 11 characters) and identifies only the bank.

You will also need the recipient's bank name and address. Some services ask for the recipient's address as well. If any of this information is wrong — a misspelled name, a transposed account number, or an incorrect SWIFT code — the transfer may be rejected or delayed. Ask the recipient to confirm their details in writing before you send anything.

Your bank or service will also ask why you are sending the money (a legal requirement under anti-money-laundering rules). Answer honestly and briefly: "family support," "payment for services," or "loan repayment" are all acceptable. Do not describe the transfer as anything other than what it is.

Exchange rates and hidden costs

The exchange rate you see on your screen is not the rate you will receive. Banks and transfer services buy and sell currency at the mid-market rate — the real rate at which banks trade with each other. They then mark it up by 1 to 5 percent and charge you that marked-up rate instead. This markup is how they make money on the transfer, and it is often not listed as a separate fee.

For example, if the mid-market rate is 1 USD = 0.92 EUR, a bank might charge you 1 USD = 0.89 EUR, pocketing the 0.03 difference on every euro you send. Over a $1,000 transfer, that markup costs you $30 to $50 without appearing as a line item on your receipt. Wise and a few other services advertise that they use the mid-market rate with only a small percentage markup (usually 0.5 to 1 percent), which is why they are often cheaper overall despite a higher flat fee.

Always ask for the total amount the recipient will receive before you confirm the transfer. Do not rely on the exchange rate shown on the website — call your bank or service and ask them to quote the exact amount in the recipient's currency, including all fees and markups.

Countries with restrictions and delays

Some countries have rules that slow or block international transfers. Banks in countries under U.S. sanctions — currently including Iran, North Korea, Syria, and Cuba — cannot receive transfers from U.S. banks. Transfers to some developing countries may be delayed because the recipient's bank has limited access to the correspondent banking network. A transfer to a major bank in Canada or the UK usually arrives within one business day; a transfer to a smaller bank in a less developed country may take a week or longer.

Your bank may also flag large transfers for review under anti-money-laundering rules. A transfer over $10,000 triggers automatic reporting to the U.S. Treasury (this is not a problem if the money is legitimate, but it does add processing time). If your bank suspects the transfer is unusual for your account, they may call you to verify before sending it.

Before you send money to a country you have not sent to before, call your bank or service and ask whether transfers to that country are currently possible and how long they typically take. Do not assume a transfer will go through just because the country exists.

Comparing costs across services

To find the cheapest option, you must compare the total cost, not just the fee. Here is what to do: decide on the amount you want to send and the country you are sending to. Then contact at least two services (your bank, Wise, and one other) and ask each one: "If I send $X to [country], how much will the recipient receive in [currency]?" Write down the answer from each service. The difference between what you send and what the recipient gets is your total cost.

Do this comparison for the exact amount and country you need, because rates and fees vary by corridor (the route from one country to another). A transfer to Mexico might be cheap, while a transfer to Vietnam might be expensive with the same service. Some services also offer better rates for larger amounts, so a $5,000 transfer might have a different per-dollar cost than a $500 transfer.

Once you have chosen a service, ask about delivery speed. If you need the money to arrive within one business day, some services charge extra. If you can wait three to five days, you may pay less. Factor this into your decision if timing matters.

What to do if a transfer goes wrong

If the recipient says they did not receive the money after the promised delivery date, contact your bank or service when ready. Ask for the transfer reference number (a tracking code assigned when you sent the money) and the status. Most services can tell you whether the transfer was sent, whether it arrived at the recipient's bank, and whether it was rejected.

If the transfer was rejected — usually because of incorrect account information — your bank will return the money to your account, though this can take several days. If the money arrived at the recipient's bank but was not deposited into their account, the recipient's bank is responsible for finding it. Have the recipient contact their bank with the transfer reference number.

If money goes missing and neither your bank nor the recipient's bank can locate it, you may have no recourse. This is why confirming the recipient's account details before sending is so important. Do not send large amounts on your first transfer to a new recipient; send a small test amount first to make sure the account information is correct.

Frequently Asked Questions

How much does it cost to send money internationally?

Total cost depends on the amount, destination, and service. A $500 transfer might cost $10 to $30 in fees plus 1 to 3 percent in exchange rate markup. A $5,000 transfer might cost $20 to $50 in fees plus the same markup. Always ask the service for the exact amount the recipient will receive before you send.

Can I send money to someone without a bank account?

Yes, through services like Western Union and MoneyGram, which allow cash pickup at physical locations in most countries. The recipient goes to a local agent with your reference number and identification, and receives the cash. This method is slower and more expensive than a bank transfer but works when the recipient has no account.

What is the difference between SWIFT and IBAN?

SWIFT is an 8 to 11-character code that identifies a specific bank. IBAN is a longer code (up to 34 characters) that includes the country, bank, and account number. Most countries use IBAN; some use SWIFT; some use both. Ask the recipient which one their bank requires.

Do I have to report international transfers to the government?

Transfers over $10,000 are reported automatically to the U.S. Treasury by your bank. This is routine and not a problem if the money is legitimate. You do not need to file any additional paperwork unless you are sending money as part of a business or investment activity, in which case you may have other tax reporting requirements.

How long does an international transfer take?

Most transfers take three to five business days. Some services offer next-day or same-day delivery for an extra fee. Transfers to countries with limited banking infrastructure may take longer. Ask your service for an estimated delivery date when you send the money.