Are you trying to figure out how to send money to a relative who lives abroad? Or perhaps you’re an employer looking to send a significant amount of money to a worker abroad. Or maybe you are a freelancer who serves international clients. Whatever the case is, you are here because you want to explore new payment options for international transactions. If so, you’ve come to the right place!
In this blog post, we’ll discuss the best ways to transfer money internationally. But before we begin, let’s take a closer look at the factors you should take into account before using an international money transfer service.
What to consider before transferring money internationally?
The following are some considerations to make before you avail a fintech service for transferring money internationally:
Processing Time
The processing time is the time required by a fintech service to transfer money to the receiver’s account abroad. It may range from a few hours to 2 or 3 days (or longer) for different services. It is a significant determining factor in choosing the transfer method. If the money needs to be transferred instantly, there are additional protocols to follow. But be prepared to pay an additional fee for this purpose.
Deductible fees
All international money transfer services charge fees to send money outside of the United States. Usually, it is taken out of the funds transferred and is calculated as a fixed percentage of the total. Some fintech solutions charge fees from both the sender and the recipient’s side. It’s also important to keep in mind that these services end up paying less than the most recent exchange rate. Therefore, you must not expect to get the actual currency exchange rate when receiving or sending U.S. dollars abroad.
Transaction Limits
There may be a minimum or maximum sum of money that you can send abroad to meet the foreign banking restrictions. A fintech service may apply cumulative transaction restrictions over a predetermined amount of time. Or they may apply limits to every transaction. In most cases, money transfer providers impose transaction limits on a daily basis.
The Destination Of Money
While most international fintech services require the receiver to have an account or wallet with them first, some providers will transfer funds directly to the recipient’s bank account. A few providers, like Western Union, allow receivers to pick up cash from numerous physical locations. Thus, prior to the money transfer, you must choose the option that works best for you.
The Sender’s and Receiver’s Locations
Some fintech services are operational in some countries but don’t work for others. Therefore, you must confirm that the service you are availing of is available in the country where your receiver lives.
10 Best Ways to Send Money Internationally
If you’ve ever found yourself wondering how to send money internationally, your search is over now. Here, we’ll go through 10 of the most effective methods for transferring funds abroad. So, whether you need to transfer a large amount of money to an employee or are seeking a quick, affordable way to send money to friends or relatives who live abroad, we have you covered. Without further ado, let’s get started!
1. International Bank Transfer
Before you sign up with a fintech service, it is advisable to confirm with your bank if they offer international wire transfers. Most banks around the globe do wire transfers, and it is also a straightforward way to send money abroad. Moreover, you already have an account with your bank, so this is the most hassle-free method of money transfer. Some accounts may not be automatically configured for international transfers. In such a case, you may start by contacting your bank to discover the procedure.
Processing Time: Wire transfer processing typically takes 2 to 3 business days in most banks in most countries.
Deductible fees: Every bank has its own fees for money transactions with foreign banks. But all of these mostly fall between 1% and 5% of the amount transferred.
Transaction Limits: Mostly, the transaction limit is $10,000 daily or $100,000 annually. But it can be more or less depending on some banks’ policies.
Location: International bank transfers are viable in banks in almost all countries.
2. Western Union
If any of your overseas relatives or friends want to receive money in cash, Western Union is the best option. No matter what corner of the world your loved ones are in, you can easily send them money through Western Union. This fintech service has 500,000 agents all over the world, allowing recipients to pick up cash from various physical locations.
Processing Time: Money can be received within a day if you send it using cash, a debit card, or a credit card.
Deductible fees: The fee charged by Western Union and the exchange rate markup may vary from less than 1% to more than 6%. It depends on the currency being exchanged and the destination.
Transaction Limits: You can send no more than $3,000 per day. But if you get yourself verified, which can be done online as well as with the help of a local agent, you can send $50,000 daily.
Location: Western Union serves more than 200 countries.
3. MoneyGram
Just like Western Union, MoneyGram is another reliable way to send money from the US to different countries across the globe. It gives you a variety of transaction options, from bank accounts and mobile wallets to self-pickups.
Processing Time: The timing of funds becoming available to the receiver depends on the country to which they are being transferred, banking hours, and foreign banks’ policies. Usually, it ranges from 1 to a few business days.
Deductible fees: The fee charged by MoneyGram depends on the currency exchange rates and the amount being transferred. You can estimate the fees online before the transaction.
Transaction Limits: From the U.S. to 42 different countries, you can transfer up to $15,000 per online transaction.
Location: MoneyGram is operational in more than 200 countries and territories.
4. PayPal
PayPal is the quickest way to transfer money abroad. All you need to have is a Paypal account linked to your bank account. You can then easily transfer funds to your recipient’s PayPal account digitally using the PayPal mobile app.
Processing Time: The funds being transferred from one PayPal account to another PayPal account should take no more than a few minutes.
Deductible fees: 5% of the total amount is deducted from the money being transferred. These fees can be a minimum of $0.99 or a maximum of $4.99. The fee for using a debit or credit card is 5% + 2.9% + a fixed fee (that is dependent on the currency).
Transaction Limits: There is no limit to the amount of money being transferred from your account, provided you have a verified PayPal account. You can often send up to $60,000 in a single transaction.
Location: You can transfer money from the U.S. to a number of different countries. Here’s the complete list of countries you can send money to.
5. Payoneer
Payoneer works almost exactly like PayPal. You need to have a Payoneer account to make international transactions. This Fintech service connects you to the entire world. Whether you’re sending or receiving money internationally, running your online business, or getting foreign funding, you can do everything at the distance of a click.
Processing Time: International transactions with Payoneer usually take 2-5 business days.
Deductible fees:
- The payment sent from the Payoneer balance to another Payoneer user is always free.
- The fee for payment upon request from clients is 3% for all currencies.
- Fees for different marketplaces vary.
- Fees for receiving accounts, like bank accounts, vary from 0-1%.
- The fee for withdrawal into the recipient’s local currency is 2%.
Transaction Limits: It allows you to make 30 transactions daily, with a daily limit of $5000.
Location: Payoneer is available in 190+ countries.
6. Ria
If your relatives and friends live in some other country than where you do, Ria is a convenient method to transfer money to them. This fintech service is available in many different locations. When possible, several agents in different countries allow same-day pickup with Ria. However, payments must be made by bank account rather than debit or credit card.
Processing Time: Usually bank account transfers can be made instantly. Sometimes, transfers may take 2 to 4 days depending on the amount and destination.
Deductible fees: The total fees deducted depend on the method of payout, the recipient’s location, and the amount to be transferred. For further confirmation of fee rates, click here.
Transaction Limits: You can transfer a maximum amount of $3,000 per day using this service.
Location: This service is operational in 150 countries and has more than 370,000 branches worldwide.
7. Xoom
The same corporation that owns Venmo and PayPal also owns Xoom. Xoom offers three easy ways of transferring money internationally. You can send money for pickup by the recipient, to his/her bank account, or to his/her Visa debit card.
Processing Time: Instant transfers can be done using Xoom. However, sending more than $10,000 in a single transaction may cause a delay of a few days.
Deductible fees: For all bank account transfers, there is a fee of $5.99. The markup on the exchange rate may range from 1% to 3%.
Transaction Limits: Any amount up to $50,000 can be transferred instantly using a verified Xoom account.
Location: Just like PayPal, Xoom is available in several countries. You can use it to transfer money to almost 160 different countries.
8. Wise
The Wise, formerly known as TransferWise, is an international money transfer service that is known for its best exchange rates. The Wise app is currently being used by more than 13 million people for international transactions. This fintech service allows you to exchange money in more than 53 currencies.
Processing Time: Bank transactions through Wise take one to three business days. Transactions that are made using a debit or credit card can be executed instantly.
Deductible fees: It gives you the highest exchange rate as compared to other international money transfer services.
Transaction Limits: The amount you can send with this service is subject to a cap. The limit depends on the currencies being exchanged as well as the method of payment. Here is all the information about each currency’s transaction restrictions.
Location: Wise allows you to send money to more than 70 different countries across the globe.
9. WorldRemit
WorldRemit is a UK-based company trusted by millions of users across the world. It offers various methods of international transactions, including bank transfers, cash pick-up, mobile money, and airtime top-up. The company has worked hard to expedite international transfers and make them secure for everyone.
Processing Time: The majority of transactions, particularly bank transfers, are completed within a few days.
Deductible fees: Like other services, WorldRemit charges transfer fees and exchange rate mark-ups. Since they are an online service, their rates are lower than those of other services. Their costs are 46% less than most banks and 22% less than Ria, Western Union, and MoneyGram.
Transaction Limits: The maximum amount that can be transferred per day is $9,000. However, the transaction limit per transfer is $5,000.
Location: You can make digital transactions to over 130 other countries.
10. OFX
OFX is another cheap option to send money abroad. This fintech service gives you many flexible options for money transfers. For example, you can schedule one-time or ongoing transfers. You can exchange your money for more than 50 currencies with the help of OFX.
Processing Time: The processing time for a transaction may vary from 5 to 7 business days.
Deductible fees: OFX doesn’t charge any transaction fees. Its markup rates are also under 1%.
Transaction Limits: There is no maximum limit for transferring money through OFX. However, you must send at least $1,000 per transaction.
Location: This service is available in 190+ countries worldwide.
Final Thoughts
From Western Union to OFX, all the above are reliable methods for transferring money internationally. The services we mentioned earlier are quick and cost less compared to others in the fintech industry. All of these are operational in several countries across the world. All you need to do now is visit the website or download the mobile application of the service you liked the most. But before you do that, don’t forget to confirm if your bank offers international money transfer services.
