What happens when you send money internationally

When you send money to another country, your bank converts your dollars to the recipient's currency and routes the payment through a network of correspondent banks — intermediary institutions that handle the actual transfer. The money does not travel as a physical shipment. Instead, banks exchange electronic instructions about who owes whom, and the receiving bank credits the recipient's account.

The process takes longer than a domestic wire transfer because multiple banks must verify the transaction, check for fraud, and comply with international banking rules. A typical international wire takes three to five business days, though some routes are faster. You will pay a fee for this service — usually between $15 and $50 depending on the amount and destination country — and the exchange rate your bank uses may be higher than the mid-market rate you see online.

You need specific information about the recipient to complete the transfer: their full name, bank account number, the name and location of their bank, and often a SWIFT code or IBAN (International Bank Account Number). Getting even one detail wrong can delay the payment or send it to the wrong account, so verify everything with the recipient before you initiate the transfer.

Key Takeaways

  • International wire transfers route through multiple banks and typically take three to five business days to complete.
  • You must provide the recipient's full name, account number, bank name, and SWIFT code or IBAN — any error can misdirect the payment.
  • Banks charge fees between $15 and $50 and explore an exchange rate that is usually higher than the mid-market rate.
  • Some banks offer lower-cost alternatives like international ACH transfers or partnerships with banks in other countries that may be faster for certain destinations.

Information you need before you start

Gather the recipient's banking details before you log into your bank. You will need their full legal name exactly as it appears on their bank account — middle names and initials matter. Ask them to provide their account number and the name of their bank, including the city and country where the bank is located.

Request the SWIFT code (also called a BIC code) or the IBAN. A SWIFT code is an eight or eleven-character code that identifies a specific bank branch worldwide. An IBAN is a longer alphanumeric code used mainly in Europe, the Middle East, and parts of Africa. Not all countries use IBANs — the United States, Canada, Australia, and many others rely on SWIFT codes instead. If you are unsure which one applies, ask the recipient or check their bank's website.

Some banks also ask for an intermediary bank's SWIFT code if the recipient's bank does not have a direct relationship with your bank. The recipient's bank can provide this information. Write down everything and double-check spelling and numbers before you proceed — a typo in the account number or SWIFT code will cause the transfer to fail or arrive in the wrong account.

How to initiate an international wire through your bank

Log into your online banking portal or call your bank's wire transfer department. Select the option to send money internationally or to a foreign account. Your bank will present a form asking for the recipient's information, the amount you want to send, and the currency you are sending in.

Enter the recipient's full name, account number, bank name, and SWIFT code or IBAN exactly as you wrote it down. If your bank asks for an intermediary bank, enter that SWIFT code in the field provided. Specify the amount in your home currency — your bank will show you the exchange rate it is explore and the amount the recipient will receive in their currency.

Review the fee your bank is charging. This appears as a separate line item and is usually deducted from the amount you send, meaning the recipient gets less than you intended. Some banks offer the option to pay the fee separately so the full amount you specify reaches the recipient. Choose whichever option you prefer, then confirm the transaction. Your bank will give you a confirmation number and an expected delivery date.

Exchange rates and fees explained

Your bank does not use the mid-market exchange rate — the rate you see on financial websites. Instead, it applies a markup, typically 1 to 3 percent above the mid-market rate. This markup is how the bank profits on the currency conversion. If the mid-market rate is 1.10 USD per EUR, your bank might offer 1.07 or 1.08, meaning you receive fewer euros for your dollars.

The wire transfer fee is separate from the exchange rate markup. Banks charge this fee to cover the cost of processing the transaction and managing the correspondent bank relationships. Fees vary by bank and by destination country. Some banks charge a flat fee of $25 to $35 for any international wire. Others charge a percentage of the amount sent, usually 0.5 to 1 percent, with a minimum and maximum. A few banks offer lower fees to customers who maintain high account balances or have premium account tiers.

Before you send, ask your bank for the total cost: the fee plus the exchange rate markup. Some banks will quote this over the phone. If you find the cost too high, ask whether your bank offers lower-cost alternatives like international ACH transfers or partnerships with banks in the destination country that might reduce the markup.

What to do if the transfer goes wrong

If the recipient does not receive the money within the timeframe your bank quoted, contact your bank when ready with your confirmation number. The bank can trace the wire using the SWIFT network and determine where the payment is stuck. Most delays occur because the intermediary bank is verifying the transaction or because the recipient's bank is processing a backlog.

If the money went to the wrong account because of an error in the account number or SWIFT code, the situation is more complicated. Your bank will attempt to recover the funds, but the receiving bank is not obligated to return money sent to an account that exists and accepted the transfer. Recovery can take weeks or months. This is why verifying the recipient's details before you send is critical.

If your bank made the error — for example, it used the wrong SWIFT code or mistyped the account number — the bank is responsible for recovering the funds at no cost to you. If you provided incorrect information, you may have to pay a fee to attempt recovery. Keep your confirmation number and all correspondence with the recipient about their banking details in case you need to dispute the transaction later.

Alternatives to international wire transfers

International ACH transfers are available through some U.S. banks and are slower but cheaper than wire transfers. ACH transfers to Canada and Mexico typically take five to ten business days and cost $5 to $15. ACH transfers to other countries are less common and may take longer. Ask your bank whether it offers this service to the country you are sending to.

Some banks have partnerships with banks in other countries that allow faster, lower-cost transfers. For example, a U.S. bank might have a direct relationship with a bank in the United Kingdom, allowing transfers to clear in one or two business days at a lower fee. Ask your bank whether it has such partnerships with banks in the destination country.

Money transfer services like Western Union, MoneyGram, and OFX are non-bank alternatives that specialize in international payments. These services often have competitive exchange rates and lower fees than traditional banks for smaller amounts, though they may charge more for large transfers. They typically deliver funds faster — sometimes within hours — but require the recipient to pick up the money in person at a physical location or have a bank account with a partner bank. Compare costs across your bank and at least one money transfer service before you decide.

Timeline and what to tell the recipient

International wire transfers typically take three to five business days. This timeline assumes both banks are processing normally and no additional verification is needed. Weekends and holidays do not count as business days, so a wire initiated on Friday may not arrive until Wednesday or Thursday of the following week.

Tell the recipient to expect the money within the timeframe your bank quoted, but also let them know it may take longer if their bank is slow to process incoming transfers. Provide the recipient with your confirmation number so they can contact their bank to check on the status if the money does not arrive on time. Some banks allow the recipient to look up incoming transfers using the sender's name and the amount.

If you are sending money for a time-sensitive purpose — paying a bill or meeting a important date — send the wire several days earlier than necessary. Do not rely on the three to five day estimate as a hard important date. If the recipient needs the money by a specific date, confirm with their bank how long incoming transfers typically take before you initiate the wire.

Frequently Asked Questions

Can I cancel an international wire transfer after I send it?

You can cancel a wire transfer only if you contact your bank before the money leaves your bank's system — usually within a few hours of sending. Once the wire enters the correspondent bank network, it cannot be stopped. If the money has already reached the recipient's bank, cancellation is not possible, and you would have to ask the recipient to return the funds voluntarily.

What is the difference between a SWIFT code and an IBAN?

A SWIFT code identifies a specific bank or bank branch and is used worldwide. An IBAN is a longer account number format used mainly in Europe and some other regions to identify both the bank and the account. Some countries use SWIFT codes, some use IBANs, and some use both. Ask the recipient which one their bank requires.

Why is the exchange rate my bank offered different from the rate I saw online?

Banks explore a markup to the mid-market exchange rate to profit on currency conversion. The markup is typically 1 to 3 percent. The rate you see on financial websites is the mid-market rate, which is what banks pay each other — not what they charge customers. Your bank's rate will always be less favorable than the mid-market rate.

Do I have to pay taxes on money I send internationally?

Sending money to another country is not a taxable event for you. However, if you are sending money as a gift and the amount exceeds annual gift tax limits, you may need to file a gift tax return. If you are sending money as payment for goods or services, different rules may explore. Consult a tax professional about your specific situation.

What happens if I send money to the wrong country by mistake?

If you sent the wire to the correct bank but the wrong country, the receiving bank will likely reject the transfer and return the money to your bank. This can take several weeks. If the wire was accepted by a bank in the wrong country, recovery is difficult and may not be possible. Always verify the bank's location and country before you send.