How to Send and Receive Money Across Borders

What international payment methods actually do

International payment methods move money from one country to another, converting currency along the way. The method you choose determines how fast the money arrives, how much it costs, and what information the recipient needs to provide. Most methods fall into one of four categories: bank transfers (also called wire transfers), money transfer services, digital wallets, and cryptocurrency. Each has different fees, speed, and requirements.

The core difference between them is who holds the money in the middle. A bank transfer goes directly from your bank to the recipient's bank, with your bank handling the currency conversion. A money transfer service like Western Union or MoneyGram holds the money temporarily and lets the recipient pick it up in cash or deposit it. Digital wallets like PayPal or Wise move money between accounts but add their own conversion rates on top. Understanding which one you need depends on whether the recipient has a bank account, whether they need cash immediately, and how much you want to spend on fees.

Key Takeaways

• Bank wire transfers are slowest (three to seven business days) but often cheapest for large amounts, and require the recipient's full banking details including SWIFT or IBAN codes.
• Money transfer services like Western Union deliver cash within hours but charge higher fees, and the recipient can pick up cash without a bank account.
• Digital wallets and transfer apps like Wise, PayPal, and Remitly show you the exact exchange rate and fee before you send, making costs transparent upfront.
• Currency conversion happens at every step—your bank's rate, the service's rate, or the recipient's bank's rate—so comparing the final amount received matters more than comparing advertised fees alone.
• International transfers require specific recipient information: a bank account number and routing code, a mobile number, a cash pickup location, or a digital wallet username, depending on the method.

Bank wire transfers: slow but direct

A bank wire transfer sends money directly from your bank account to the recipient's bank account. Your bank deducts the money immediately, converts it to the recipient's currency, and sends it through the SWIFT network (the global banking messaging system). The recipient's bank receives it and deposits it into their account. This process typically takes three to seven business days, depending on time zones and whether both banks process on weekends.

Bank wire transfers usually cost between $15 and $50 per transfer, though some banks charge more for international wires. The fee is often the same whether you send $100 or $10,000, which makes wires cheaper for large amounts. However, your bank's exchange rate is usually worse than what you would get from a specialized money transfer service, so the total cost to the recipient can be higher than it appears.

To send a wire, you need the recipient's full banking details: their account number, the bank's routing code or SWIFT code, the bank's name and address, and sometimes an IBAN (International Bank Account Number). Ask the recipient to provide these from their bank statement or by logging into their online banking. Mistakes in these details can delay the transfer or send money to the wrong account, so verify them carefully before you send.

Money transfer services: cash in hours

Money transfer services like Western Union, MoneyGram, and Ria operate physical locations in most countries and let you send cash that the recipient can pick up the same day or within a few hours. You go to a location, provide cash and the recipient's name, and they receive a reference number. The recipient goes to a location in their country, provides the reference number and identification, and receives the cash. No bank account is required on either end.

These services charge higher fees than banks—typically 3 to 8 percent of the amount sent, plus a conversion fee. A $500 transfer might cost $25 to $40 in fees alone. However, the speed and the fact that the recipient does not need a bank account make them valuable for emergencies or when sending to countries with limited banking infrastructure. Some services also offer bank deposit options, which are slightly cheaper and take one to two business days.

To use a money transfer service, you need the recipient's full name (exactly as it appears on their identification), their country, and the city or location where they will pick up the money. Some services ask for their phone number or address as well. The recipient needs a valid government-issued ID to collect the cash. Check the service's website or app to see which locations are open in the recipient's area before you send.

Digital wallets and transfer apps: transparent rates

Digital transfer services like Wise, Remitly, OFX, and PayPal show you the exact exchange rate and total fee before you confirm the transfer. You log into an app or website, enter the amount and the recipient's details, and see exactly how much they will receive. These services are popular because the rates are usually better than banks and the fees are clearly stated upfront, with no hidden conversion markups.

Wise specializes in international transfers and typically charges a small percentage fee (around 0.5 to 2 percent) plus the real mid-market exchange rate. Remitly focuses on transfers to specific countries and often has promotional rates for first-time users. PayPal charges a percentage plus a fixed fee and is useful if both you and the recipient already have PayPal accounts. OFX is geared toward larger transfers and businesses. All of them require the recipient to have either a bank account or a digital wallet account in their country.

Speed varies: Wise and Remitly typically deliver within one to three business days, while PayPal can be faster if both accounts are in the same country. To send through any of these services, you need the recipient's bank account details (account number and routing code) or their digital wallet username. Create an account, verify your identity (usually by uploading a government ID), link your bank account or card, and then you can send. Most services let you set up recurring transfers if you send money regularly.

Cryptocurrency and peer-to-peer transfers

Cryptocurrency like Bitcoin or stablecoins (cryptocurrencies pegged to a real currency like the US dollar) can move money across borders without a bank or transfer service. The sender and recipient each need a digital wallet, and the transaction settles in minutes to hours. Fees are usually low, and there is no currency conversion markup because the recipient receives the same cryptocurrency you send.

However, cryptocurrency has real drawbacks for most people. The recipient must know how to use a digital wallet and convert the cryptocurrency back to their local currency, which adds another step and another fee. Cryptocurrency prices fluctuate, so the amount the recipient receives in their local currency can change between the time you send and the time they convert it. If you send the wrong amount or to the wrong wallet address, the transaction cannot be reversed. Cryptocurrency is also not insured or protected by any government, so if the exchange or wallet is hacked, your money is gone.

Peer-to-peer (P2P) transfer apps like Wise, PayPal, and Venmo let you send money directly to someone's account if you both use the same app. These are fast and cheap for small amounts but only work if the recipient has the same app and is in a supported country. They are best for splitting bills or sending money to friends rather than for regular international transfers.

Comparing costs: what the recipient actually receives

The advertised fee is not the same as the total cost. A bank wire might charge $25 but use an exchange rate that is 2 percent worse than the real rate, costing the recipient an extra $20 on a $1,000 transfer. A money transfer service might charge 5 percent but use the real market rate. A digital wallet might charge 1 percent and use the real rate. The only way to know the true cost is to check what the recipient will actually receive in their local currency.

Before you send, ask the recipient what amount they need to receive in their local currency. Then check each method to see how much you would need to send to deliver that amount. The method that requires you to send the least is the cheapest, regardless of what the advertised fee says. Most digital transfer services show this comparison on their website or app. For bank wires, call your bank and ask what the recipient will receive after all fees and conversion. For money transfer services, use their calculator on the website.

Exchange rates change throughout the day, so the amount the recipient receives can vary by a few dollars depending on when you send. Some services let you lock in a rate for a set period (usually 24 to 48 hours) so the recipient knows exactly what they will receive. This is useful if you are sending a specific amount that the recipient is counting on.

What information you need from the recipient

The information required depends on the method. For a bank wire, you need the recipient's account number, the bank's SWIFT code or routing number, the bank's name and address, and sometimes their IBAN. For a money transfer service, you need their full name, the country and city where they will pick up the money, and sometimes their phone number or address. For a digital wallet or transfer app, you need their bank account details or their username in the app.

Ask the recipient to provide this information from their bank statement, their online banking portal, or their digital wallet app. Do not guess or use information from an old transfer—banks change routing codes and account numbers sometimes. Verify the information by reading it back to the recipient before you send. If the recipient is in a country where banking information is not standardized (some developing countries do not use SWIFT codes), ask them what information their bank requires and provide that to the transfer service.

Frequently Asked Questions

How long does an international transfer actually take?

Bank wires take three to seven business days because they pass through multiple banks and clearing systems. Money transfer services deliver cash within hours to a day. Digital wallets and apps typically deliver within one to three business days. Cryptocurrency settles in minutes to hours. Speed also depends on time zones—a transfer sent on Friday evening might not process until Monday.

What happens if I send money to the wrong account?

Bank wires are difficult to reverse once sent. Contact your bank immediately and provide the details of the incorrect transfer. The bank can try to recall it, but if the recipient's bank has already accepted it, recovery is unlikely. Money transfer services and digital wallets are easier to reverse if you catch the error before the recipient picks up or accepts the money. Always verify the recipient's details before you send.

Why is the exchange rate different from what I see online?

The exchange rate you see online is the mid-market rate, which is what banks trade at with each other. Banks, money transfer services, and digital wallets all add a markup to this rate to make money. The markup is usually 1 to 3 percent but can be higher. Digital wallets typically have smaller markups than banks. Always check what the recipient will actually receive rather than comparing advertised rates.

Can I send money if the recipient does not have a bank account?

Yes, if you use a money transfer service like Western Union or MoneyGram, the recipient can pick up cash without a bank account. Some digital wallets also partner with local services to let recipients withdraw cash at convenience stores or partner locations. Bank wires and most digital wallet transfers require the recipient to have a bank account or a digital wallet account.

Are international transfers taxed or reported to the government?

Large transfers are reported to tax authorities in many countries. In the United States, transfers over $10,000 trigger a Currency Transaction Report filed with the Financial Crimes Enforcement Network. This is not a tax—it is a reporting requirement. Whether you owe tax on the transfer depends on whether it is a gift, a loan, or income, and the tax laws of your country. Consult a tax professional if you are unsure.