International Money Transfers: How to Send Money Abroad

Today, businesses, travel, families, and relationships can span continents, making it a common thing to send money internationally. This naturally begs the question: how to transfer money abroad quickly and without losing cash to hidden fees? Whole generations have struggled with this conundrum for the past two decades.

In this guide, we’ll explain how international transfers work and review different ways to transfer money abroad so you can choose one that matches your situation.

What Are International Money Transfers?

An international funds transfer is a financial transaction where an individual or company moves money from one country to another in compliance with international banking regulations. This type of transaction comes in handy in lots of cases, helping families support their loved ones abroad, businesses handle global operations, freelancers receive payments from foreign clients, and much more.

While sending funds abroad is easy, international transfers are still more complex than their domestic equivalent, since several systems and institutions are usually involved in the process.

Key Things to Know About International Transfers

There are a few important details you should check to pick the best way to transfer money abroad.

• Transfer fees: Unsurprisingly, international transfers aren’t free. Some providers come up with flat rates and charge them upfront, while others integrate fees into the exchange rate, promising a free service while still charging you in secret.
• Currency exchange rate: Moving money between countries often entails currency conversion, and the exchange rate directly impacts how much money the recipient will actually get. So, compare exchange rates across providers and platforms. Those that hide transfer fees in exchange rates will have higher markups. 
• Transfer time: Depending on the method and destination country, transfers can take anywhere from a few seconds to several business days.
• Receipt options: You can receive funds on your bank account, mobile wallet, or pick them up in cash at a local bank branch or partner location. Different services offer different options.
• Transfer limits: Many banks and services set minimum and maximum limits for international transfers. Those limits are usually determined by your account type, transfer destination, and local regulations.

Common Methods to Transfer Money Abroad

Modern banking offers several ways to transfer money abroad. These could be split into several major categories.

• Bank transfers: You can initiate a transfer directly through your bank in person, online, or via a mobile app. Your bank will use a global network like SWIFT to transfer funds to your recipient’s account overseas.
• Money transfer services: These services usually rely on their own networks and offer faster and more affordable international transfers compared to banks. These include traditional operators, like MoneyGram and Western Union, and digital platforms like Wise, Remitly, or Paysend.
• Online payment apps: Payment processors like PayPal, Payoneer, or Revolut provide one of the easiest ways to transfer money abroad, requiring only an email address, phone number, or app account. A recipient can then use their balance online or withdraw funds to their local bank account.
• Cryptocurrency: Crypto allows for peer-to-peer transfers that don't involve traditional banks and thus have lower transaction fees. Yet, using cryptocurrencies requires some research and is considered an option for tech-savvy users.

How to Choose the Right Transfer Service?

With dozens of apps, banks, and services offering “the best rates” for international transfers, how do you really know which one is the right choice for your needs? The cheapest and fastest way to transfer money abroad always depends on the kind of transfer you need.

Regular Transfers

If you send money to the same person on a weekly or monthly basis, the safest and most convenient option might be an international bank your recipient has access to, such as Bank of America, J.P. Morgan, Wells Fargo, or Citibank. With the right account type, it will be the cheapest way to transfer money abroad, since you can bypass a lot of fees and benefit from much lower charges.

Money transfer services are another good option for frequent or scheduled transfers like remote work or support payments, recurring services, and business expenses.

One-off and Small Transfers

When you need to make a single payment, for example, to complete an occasional purchase abroad or pay for a friend’s birthday gift, you probably wouldn’t want to deal with a complex banking setup or a recurring system. What you need is a fast and cheap way to send a small amount anywhere in the world. Thankfully, there are several online payment apps to meet your one-time needs.

High-Value Transfers

The top priorities for dealing with larger sums (when purchasing property, paying tuition, or handling business expenses) are exchange rates, security standards, processing speed, and transfer limits. It’s also essential to double-check whether your chosen provider is authorized and regulated by financial authorities (FCA, FinCEN, etc.).

* Bank international transfer limits may still apply.

Final Thought

In this day and age, sending funds overseas is nothing special. Several transfer methods are available to match just about any situation, while numerous service providers offer instant transfers, making it easy to move funds anywhere in the blink of an eye.

Digital platforms and online services confidently take the lead in international transfers. By offering faster transfer speeds and competitive fees, they leave banks and traditional payment methods behind. By choosing the right platform for your purposes, you can ensure your money travels safely, quickly, and as cheaply as possible.