The main ways to transfer money internationally

You have four main routes to move money from a US bank account to a foreign bank account: a wire transfer through your bank, an international money transfer service, a peer-to-peer payment app, or a currency exchange broker. Each one differs in speed, cost, and how much paperwork you need to do upfront.

Wire transfers are the oldest method and still the most common for large amounts. Your US bank sends the money directly to the foreign bank using the SWIFT network (the international banking system). International money transfer services like Wise, OFX, and Remitly sit between you and the banks and often charge less in fees. Peer-to-peer apps like PayPal and Wise also move money but work best for smaller amounts. Currency exchange brokers handle large transfers and give you better exchange rates if you're moving significant sums.

The method you choose depends on how much you're sending, how fast you need it to arrive, and whether you want to lock in an exchange rate ahead of time.

Key Takeaways

  • Wire transfers through your bank take one to three business days and work for any amount, but typically cost $15 to $50 per transfer.
  • International money transfer services often charge lower fees than banks and show you the exact exchange rate and total cost before you confirm.
  • You will need the recipient's full name, bank account number, bank name, and SWIFT code or IBAN (International Bank Account Number) to complete any transfer.
  • Exchange rates vary by provider and change throughout the day, so the amount your recipient gets depends on when you send and which service you use.
  • Transfers to some countries take longer or cost more due to banking restrictions or currency controls in that country.

What information you need before you start

Before you initiate any transfer, you need the recipient's banking details. Ask them for their full legal name exactly as it appears on their bank account, their account number, their bank's name, and either the SWIFT code or IBAN. The SWIFT code is an eight- or eleven-character code that identifies the bank. The IBAN is a longer alphanumeric code (up to 34 characters) used mainly in Europe, the Middle East, and parts of Asia. Not all countries use IBANs, so you may only need the SWIFT code.

If the recipient is unsure, they can ask their bank directly or check their bank statements—both usually show this information. Getting these details wrong is the most common reason a transfer gets delayed or sent to the wrong account, so double-check before you send.

You also need to know how much money you're sending and whether you want to send a specific US dollar amount or have the recipient receive a specific amount in their local currency. This matters because the exchange rate changes daily, and different providers charge different fees.

Wire transfers through your bank

A wire transfer is a direct electronic payment from your US bank to the foreign bank. You initiate it at your bank's branch, online portal, or by phone. Your bank will ask for the recipient's name, account number, bank name, and SWIFT code. Some banks also ask for an IBAN or a bank address.

Wire transfers typically arrive in one to three business days, though some banks promise next-day delivery for an extra fee. The cost ranges from $15 to $50 depending on your bank and whether it's a domestic or international wire. Some banks charge a flat fee; others charge a percentage of the amount sent. Ask your bank for the exact fee before you confirm.

The downside is that banks often apply a poor exchange rate—they add a markup to the mid-market rate (the real rate you see on financial news sites). This markup can be 2 to 5 percent, meaning you lose money on the conversion. Wire transfers are most useful when you need the money fast or when the amount is very large and your bank waives the fee.

International money transfer services

Services like Wise, OFX, Remitly, and MoneyGram offer an alternative to bank wire transfers. You set up an account online, enter the recipient's banking details, and choose how much to send. The service shows you the exact exchange rate and total fee before you confirm. Once you approve, the money moves to the recipient's bank account.

These services typically charge lower fees than banks—often $0 to $15 for transfers under $10,000—and use the mid-market exchange rate or close to it, so you lose less money in the conversion. Delivery times vary: some promise one to two business days, others take three to five. The speed often depends on the destination country and the time of day you send.

The trade-off is that you need to fund the transfer from your US bank account, which may take an extra day if you use a bank transfer instead of a debit card. Some services also hold your money for a day or two before sending it, which can matter if the exchange rate is moving fast.

Peer-to-peer payment apps

Apps like PayPal, Wise, and Remitly also let you send money to a foreign bank account directly from your phone. You link your US bank account or debit card, enter the recipient's details, and send. These work best for amounts under $5,000 and for countries with established banking infrastructure.

Fees are usually lower than banks—$1 to $10 for smaller transfers—and the exchange rates are competitive. Delivery typically takes one to three business days. The main limitation is that not all countries are supported, and some countries have daily or monthly limits on how much you can send.

PayPal and similar apps also let you send money to an email address or phone number if the recipient has an account with the same service, which skips the need for banking details. However, the recipient still needs to withdraw the money to their bank account eventually, which may involve fees on their end.

Currency exchange brokers for large transfers

If you're sending $50,000 or more, a currency exchange broker may save you money. Brokers like OFX, Currencies Direct, and OANDA work with large transfers and offer better exchange rates than banks or consumer money transfer services. They also let you lock in an exchange rate for a set period (usually 24 hours to two weeks), which protects you if the rate moves against you.

Brokers typically charge a flat fee of $50 to $150 plus a small markup on the exchange rate. For large amounts, this is often cheaper than the combined fees and poor rates you'd get from a bank. The trade-off is that brokers usually require you to open an account and may ask for proof of the source of the funds (to comply with anti-money-laundering rules).

Delivery times are similar to banks—one to three business days—but brokers often have more flexibility if you need the money to arrive on a specific date.

How exchange rates and fees affect what your recipient gets

The amount your recipient receives depends on three things: the mid-market exchange rate on the day you send, the markup or fee the provider adds, and any fees the recipient's bank charges on their end.

The mid-market rate is the real rate you see on financial websites. Most providers don't use this rate; they add a markup of 1 to 5 percent. Banks typically add the largest markup. Money transfer services add smaller markups. Some services (like Wise) advertise that they use the mid-market rate, but they still charge a flat fee to cover their costs.

The recipient's bank may also charge a receiving fee, which comes out of the money they get. This fee varies by country and bank—some charge $5, others charge $25 or more. Ask the recipient to check with their bank before you send so you both know what to expect.

To compare providers fairly, enter the amount you want to send and see what the recipient will actually receive after all fees and the exchange rate. Don't compare fees alone; compare the final amount.

What to do if the transfer is delayed or goes to the wrong account

Most transfers arrive on time, but delays happen. If your transfer hasn't arrived after the promised timeframe, contact the provider or your bank immediately. They can check the status using the reference number they gave you when you sent the money.

If the money went to the wrong account because you provided incorrect banking details, recovery is difficult. The recipient's bank may not return the money automatically. You'll need to contact the bank that received it and ask them to reverse the transfer, which can take weeks or may not happen at all. This is why verifying the recipient's details before you send is critical.

If the provider or bank made an error on their end, they are responsible for fixing it. Document everything—screenshots of the transfer confirmation, the reference number, and any emails—and escalate to a supervisor if the first response doesn't help.

Frequently Asked Questions

How long does an international wire transfer actually take?

Most wire transfers arrive in one to three business days. Some banks offer next-day delivery for an extra fee. The exact time depends on the destination country, the time of day you send, and whether the receiving bank processes transfers on weekends. Weekends and holidays can add extra days.

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

The rate you see online is the mid-market rate, which is what banks trade at with each other. Banks and money transfer services add a markup to this rate to cover their costs and make a profit. The markup ranges from 1 to 5 percent depending on the provider. Some services show you the markup upfront; others hide it in the rate they quote.

Can I send money to a country that the US has sanctions against?

No. US banks and money transfer services cannot send money to countries under US government sanctions, including Iran, North Korea, Syria, and Cuba. Attempting to do so is illegal. If you need to send money to someone in a sanctioned country, you will need to consult a lawyer about your options.

What happens if I send money to the wrong bank account number?

The money may be rejected and returned to your account, or it may be deposited into someone else's account. If it's rejected, the return can take one to two weeks. If it's deposited elsewhere, recovery is difficult and may require the receiving bank's cooperation. Always verify the account number with the recipient before you send.

Do I need to report international transfers to the IRS?

If you're sending money as a gift or personal transfer, you generally don't need to report it to the IRS. However, if you're sending money as payment for goods or services, or if the amount is very large, you may have reporting obligations. Consult a tax professional or accountant about your specific situation.