How to Send Money Across Borders and What It Costs

What global payment means and why the cost matters

A global payment is money you send to someone in another country—a family member abroad, a vendor overseas, a loan repayment to an international lender. The money leaves your bank account in one currency and arrives in another, crossing borders through networks that charge fees at every step. Understanding those fees and the route your money takes is the difference between sending $100 and having $75 arrive.

Most people think of a wire transfer when they think of sending money internationally, but that is only one path. You can also use a money transfer service, a peer-to-peer app, your bank's online portal, or a physical location. Each route has different costs, speed, and exchange rates. The cheapest option for one person might be the slowest for another, depending on where the money is going and how much you are sending.

Key Takeaways

• Wire transfers through banks are fast but expensive, often costing $15 to $50 per transfer plus an unfavorable exchange rate markup.
• Money transfer services like Western Union and MoneyGram charge lower fees but may take longer and have daily or monthly limits.
• The exchange rate your provider uses—not the real market rate—is often where the largest hidden cost sits.
• Peer-to-peer apps and online transfer services can be cheaper for regular transfers, but work best for countries with established digital infrastructure.
• Always compare the total cost (fee plus exchange rate loss) across at least two providers before sending, because the cheapest upfront fee is not always the cheapest overall.

Wire transfers: fast, direct, and expensive

A wire transfer moves money directly from your bank to a bank account overseas. Your bank sends the funds through SWIFT (the Society for Worldwide Interbank Financial Telecommunication), a network that connects banks globally. The money typically arrives within one to three business days, sometimes faster.

Wire transfers cost between $15 and $50 per transaction, depending on your bank and the destination country. Some banks charge a flat fee; others charge a percentage of the amount sent. On top of the fee, your bank applies its own exchange rate—usually 1 to 3 percent worse than the real market rate. If you send $1,000 to Mexico and the real rate is 17 pesos per dollar, your bank might give you 16.5 pesos per dollar, pocketing the difference. That hidden markup often exceeds the stated fee.

Wire transfers work well when you need money to arrive quickly and the recipient has a bank account. They do not work if the recipient has no bank, or if the destination country has restrictions on incoming wire transfers. Some countries also require you to provide a reason for the transfer or documentation of the funds' origin.

Money transfer services: lower fees, physical locations

Money transfer services like Western Union, MoneyGram, and Remitly specialize in moving cash across borders. You can send money online, by phone, or in person at a physical location (a grocery store, a post office, a dedicated agent). The recipient can pick up cash at a corresponding location in their country, or have it deposited into a bank account.

Fees typically range from $3 to $15 for smaller amounts, though they can be higher for large transfers or certain destinations. Exchange rates are usually better than banks offer, but still 1 to 2 percent above the real market rate. The trade-off is speed: cash pickups usually take one to three business days, sometimes longer depending on the destination country and time of day you send.

Money transfer services are useful when the recipient does not have a bank account, or when you need a physical location to send from. They also often have lower daily limits than banks—sometimes $500 to $2,500 per day—so they work better for frequent small transfers than for one large payment. Check the specific service's limits for the country you are sending to, because they vary widely.

Online transfer services and peer-to-peer apps

Services like Wise (formerly TransferWise), OFX, and Remitly's online platform use a different model: they hold money in multiple countries and match senders and receivers, reducing the number of times currency actually changes hands. This approach typically offers better exchange rates than banks or traditional money transfer services.

Fees are usually $1 to $5 for smaller transfers, with exchange rates very close to the real market rate. The catch is that these services work best when both sender and recipient have bank accounts and internet access. They also tend to work faster and cheaper for transfers to countries with strong banking infrastructure—the UK, Canada, Australia, Europe—than to countries with fewer digital banking options.

Peer-to-peer apps like PayPal, Square Cash, and Wise also allow transfers between individuals, though limits are often lower and fees may apply if you are converting currency. These work well for regular transfers to the same person or country, because you can set up a recurring payment and avoid re-entering details each time.

How exchange rates hide the real cost

The exchange rate is where most people lose money without realizing it. The real exchange rate (also called the mid-market rate) is what you see on financial news sites and currency converters—it changes constantly throughout the day. Your bank or transfer service does not use that rate. Instead, they use their own rate, which is always worse for you.

A bank might advertise "competitive rates" but still mark up the rate by 1 to 3 percent. A money transfer service might mark it up by 2 to 4 percent. Over time, this markup costs more than the stated fee. If you send $5,000 to the Philippines monthly and lose 2 percent on the exchange rate, you are losing $100 per month—$1,200 per year—before you even count the transfer fee.

To compare providers fairly, ask each one for the total amount the recipient will receive, not just the fee. Some will tell you upfront; others require you to enter the amount and destination to see the real number. That total is what matters. A service with a $5 fee but a better rate might deliver more money than one with a $2 fee and a worse rate.

Limits, timing, and what can go wrong

Every provider sets daily, weekly, or monthly limits on how much you can send. Banks often allow larger amounts ($10,000 or more per day), while money transfer services and apps may cap you at $500 to $2,500 per day. If you are sending a large amount, you may need to split it across multiple days or use a different provider.

Timing also varies. A wire transfer might arrive in one to three business days, but weekends and holidays can add delays. A money transfer service might take one to five business days depending on the destination. An online transfer service might be faster or slower depending on whether the recipient's bank is in their network. Always ask the provider for an estimated delivery date before you send, not after.

Problems can happen: a typo in the recipient's account number, a mismatch between the name on the account and the name you provided, a destination country's restrictions on incoming transfers, or a bank that does not accept transfers from certain countries. If money is sent to the wrong account, recovering it is slow and sometimes impossible. Before you send, double-check the recipient's account number, full name, and bank details. Ask them to confirm the information matches their bank records.

Comparing providers: what to check before you send

Do not choose a provider based on the fee alone. Instead, gather this information from at least two providers:

• The total fee (stated upfront)
• The exchange rate they will use (ask for the rate in writing or take a screenshot)
• The total amount the recipient will receive (in their local currency)
• The estimated delivery date
• Any daily or monthly limits
• Whether the recipient receives cash or a bank deposit

Then calculate the real cost: the amount you send minus the amount the recipient receives. The provider with the lowest real cost is the one to use. This takes five minutes and can save you hundreds of dollars per year if you send money regularly.

Frequently Asked Questions

Is it safe to send money internationally online?

Yes, if you use an established provider with encryption and fraud protection. Banks, Western Union, Wise, and Remitly all use security measures to protect your account and the recipient's. The risk is not the provider—it is sending money to the wrong person or account. Verify the recipient's details before you send, because once money leaves your account, recovery is difficult.

What documents do I need to send money internationally?

Most providers require your name, address, phone number, and bank account or payment method. Some countries require you to state the reason for the transfer (family support, business payment, loan repayment). A few countries require documentation of the funds' origin for large transfers. Ask the provider what they need before you start the process.

Can I send money to someone without a bank account?

Yes, if you use a money transfer service like Western Union or MoneyGram that allows cash pickup. The recipient goes to a physical location in their country, provides identification, and collects the cash. Online transfer services and peer-to-peer apps usually require a bank account on both ends.

What happens if the money does not arrive?

Contact the provider immediately with your transfer confirmation number. They can track the payment and tell you where it is. If it was sent to the wrong account, the provider may be able to recall it, but this takes time and is not always possible. If the recipient's bank rejected it, the money usually returns to your account within five to ten business days.

Are there limits on how much I can send?

Yes. Banks typically allow larger amounts ($10,000 or more per day), while money transfer services and apps cap daily or monthly transfers at $500 to $2,500. Some countries also restrict incoming transfers. Check with your provider and the recipient's country for any limits that apply to your situation.