How to Send Money Across Borders and Pay International Bills
What global payment services do and who uses them
Global payment services move money from your bank account to someone in another country—whether that's a family member, a business you owe, or a utility company abroad. The money leaves your U.S. bank account and arrives in a foreign bank account, usually within one to five business days, though speed and cost depend on which service you use and where the money is going.
You might use these services to pay rent on a property overseas, send money to relatives, cover medical bills in another country, or pay for goods and services from international vendors. The mechanics are different from domestic bill pay because currency conversion happens, fees are higher, and the receiving bank is outside the U.S. financial system.
Most people access global payment services through their own bank, a money transfer company like Western Union or MoneyGram, or a digital platform like Wise (formerly TransferWise) or PayPal. Each route has different costs, speed, and exchange rates.
Key Takeaways
- Global payments involve currency conversion and cross-border banking, which means higher fees than domestic transfers—typically 1 to 8 percent of the amount sent, depending on the service and destination country.
- Your bank's exchange rate is usually worse than the mid-market rate; money transfer companies and digital platforms often offer better rates but charge separate fees.
- Delivery speed ranges from same-day to five business days; faster options cost more, and some destinations have no fast option regardless of price.
- You will need the recipient's full name, bank account number, and bank routing information (called SWIFT or IBAN codes); incorrect details can delay or lose the transfer.
- Sending money to certain countries may require extra documentation or may be restricted entirely due to U.S. sanctions or anti-money-laundering rules.
How banks, money transfer companies, and digital platforms differ
Your own bank can send money internationally, but it is usually the most expensive option. Banks charge an outgoing wire fee (typically $15 to $50), add a markup to the exchange rate (usually 1 to 3 percent above the real rate), and may charge the receiving bank a fee as well. The total cost can easily reach 5 to 8 percent of what you send. Speed is reliable—most international wires arrive within one to three business days—but you pay for that reliability.
Money transfer companies like Western Union, MoneyGram, and Remitly specialize in cross-border payments and often have better exchange rates than banks, though they still mark up the rate and charge a separate transfer fee. Their fees are usually lower than banks for smaller amounts, but the exchange rate markup can still make the total cost high. Speed varies: some offer same-day delivery to certain countries, others take three to five days. These companies have physical locations or online platforms, so you can send money without a bank account if you have cash and a photo ID.
Digital platforms like Wise, OFX, and Remitly's online service use the real mid-market exchange rate with no markup, then charge a flat fee or small percentage. For larger transfers or frequent sending, these are usually cheapest. The tradeoff is that delivery is slower—typically three to five business days—and you must have a bank account to send from. Some digital platforms also let you hold foreign currency in a digital wallet before converting, which can save money if exchange rates move in your favor.
Understanding fees, exchange rates, and what your money actually costs
The total cost of sending money internationally has three parts: the outgoing fee (what the sender pays), the exchange rate markup (the difference between what you get and the real rate), and sometimes a receiving fee (what the recipient's bank charges). You control the first two; the third depends on the receiving bank.
An example: you send $1,000 to Mexico. The mid-market exchange rate is 17 pesos per dollar. Your bank charges a $30 wire fee, marks up the rate to 16.5 pesos per dollar, and the receiving bank charges 150 pesos (about $9). You pay $30 upfront. Your $1,000 converts to 16,500 pesos instead of 17,000 pesos—a loss of 500 pesos ($29). The recipient receives 16,350 pesos after the receiving bank's fee. Your total cost is roughly $59, or 5.9 percent. A digital platform charging a flat $3 fee and using the true 17-peso rate would cost you $3 total, or 0.3 percent.
Always ask before you send: What is the exchange rate you will use? What fees do you charge? Will there be a receiving fee, and if so, how much? Some services show you the exact amount the recipient will get before you confirm; others do not. Knowing the final number matters, especially if you are sending a specific amount that needs to arrive intact.
Speed of delivery and when you need money fast
International transfers are not instant. The U.S. banking system uses the SWIFT network to route money between countries, and each bank in the chain takes time to process and verify. Even with the fastest service, money typically takes one to three business days to arrive. Weekends and holidays add delays because banks do not process transfers outside business hours.
Some services offer same-day or next-day delivery, but only to certain countries and usually for a premium fee. Western Union and MoneyGram can deliver cash same-day in many countries if the recipient picks it up at a physical location. Digital platforms rarely offer faster than three business days. Your bank's international wire is usually one to three days but can take longer if the receiving bank is slow or if there are compliance checks.
If you need money to arrive by a specific date, send it at least five business days early and account for weekends. If you are paying a bill with a due date, contact the payee first to confirm they accept international transfers and how long they expect the money to take. Some utilities and services abroad do not accept wire transfers at all and require local payment methods instead.
What information you need to send money and what can go wrong
To send money internationally, you need 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 U.S., this routing code is called an IBAN (International Bank Account Number) or SWIFT code. Some countries use both; some use only one. If the information is wrong—a misspelled name, a transposed account number, or an incorrect SWIFT code—the money can be rejected, returned to you (taking another week), or in rare cases, sent to the wrong person's account.
Before you send, ask the recipient to confirm their details in writing. Many international transfers cannot be reversed once sent, so verification is critical. If money does go to the wrong account, your bank can file a trace, but recovery is slow and not may provide. Some services offer transfer insurance or money-back guarantees if delivery fails, but read the fine print—most guarantees exclude errors in the information you provided.
You will also need to provide your own information: your name, address, and bank account details. Services are required by law to verify your identity and the source of the funds. If you are sending a large amount (usually over $10,000), you may be asked for additional documentation like a tax return or proof of income. This is anti-money-laundering compliance, not a sign of suspicion—it is standard for all large international transfers.
Restrictions, sanctions, and countries where you cannot send money
The U.S. government restricts money transfers to certain countries and individuals due to sanctions and anti-money-laundering rules. You cannot send money to Iran, North Korea, Syria, or Crimea, and transfers to Cuba, Sudan, and a few other countries are heavily restricted. If you try to send to a restricted country, the transfer will be blocked and your money returned.
Even within allowed countries, some banks and money transfer services have their own restrictions. They may not serve certain regions, may require extra documentation, or may charge higher fees for higher-risk destinations. If you are sending to a country you are unsure about, contact your bank or the money transfer service first to confirm it is possible before you initiate the transfer.
If you are sending money on behalf of someone else or to a business, you may need to provide documentation proving the purpose of the transfer. This is routine for large amounts and is part of compliance screening. Be honest about the purpose—saying "gift" when you mean "payment for services" can flag the transfer for review and delay it.
Comparing your options: when to use your bank, a money transfer company, or a digital platform
| Service Type | Best For | Typical Cost | Speed | Exchange Rate |
|---|---|---|---|---|
| Your bank | One-time transfers, when speed is critical, if you need a paper trail for compliance | 5–8% of amount sent | 1–3 business days | Marked up 1–3% above mid-market |
| Money transfer company (Western Union, MoneyGram, Remitly) | Sending cash, no bank account needed, same-day delivery to certain countries | 3–7% of amount sent | Same-day to 5 business days | Marked up 1–2% above mid-market |
| Digital platform (Wise, OFX, Remitly online) | Frequent transfers, large amounts, best exchange rate, lowest total cost | 0.5–2% of amount sent | 3–5 business days | Mid-market rate, no markup |
If you are sending money once and do not care about cost, your bank is simple and reliable. If you are sending regularly or a large amount, a digital platform saves money. If you need same-day delivery or do not have a bank account, a money transfer company is your only option. For paying bills abroad, check whether the payee accepts wire transfers or requires a local payment method—some utilities and services do not accept international transfers at all.
Frequently Asked Questions
Can I send money internationally from my checking account without going to my bank?
Yes. Money transfer companies and digital platforms let you send from your checking account online or through an app without visiting a branch. You authorize the transfer, and they pull the money from your account via ACH (which takes one to two business days) before sending it overseas. This is usually cheaper than your bank's wire service.
What happens if I send money to the wrong account number?
The money may be rejected and returned to you, which takes another week or more. In rare cases, it reaches the wrong person's account, and recovery is difficult. Always verify the recipient's account details in writing before sending. Some services offer money-back guarantees if the transfer fails due to their error, but not if you provided wrong information.
Why does the exchange rate I see online differ from the rate I actually get?
The rate you see online is usually the mid-market rate—the real rate banks use among themselves. Your bank, money transfer company, or digital platform adds a markup to that rate to make money. Digital platforms like Wise use the mid-market rate with no markup but charge a flat fee instead. Always ask what rate you will receive before you send.
Do I need to report international transfers to the IRS?
Transfers of your own money to your own account abroad do not need to be reported. However, if you send money to someone else or receive money from abroad, there may be tax or reporting requirements depending on the amount and your situation. Consult a tax professional if you are unsure. Banks report large transfers (over $10,000) to the government as part of anti-money-laundering compliance, but this is routine and not a sign of wrongdoing.
Can I cancel an international transfer after I send it?
It depends on how far the money has traveled. If you cancel within minutes of sending, before the money leaves your bank, you can usually stop it. Once it has entered the international banking system, cancellation is difficult or impossible. Contact your bank or money transfer service immediately if you need to cancel. This is another reason to verify all details before you send.