The best ways to send money abroad are through companies that don’t charge exorbitant costs and offer competitive exchange rates.
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Wise
Best for high sending limits
U.S. coverage extends to nearly 70 nations, although this figure may vary.
Cost: Wise, previously known as TransferWise, has some of the most favorable exchange rates available, and the upfront fees are generally minimal when funding your transfer via a bank account, typically under 1% of the transfer total.
Speed: While same-day delivery is available for certain nations, bank transfers typically take days. A transfer made with a bank account may take seconds to two business days, depending on the destination, whereas a transfer made with a debit or credit card may reach in a matter of seconds.
Transfer limits and options: If you use an ACH transfer, the sending maximum is $1 million per transfer; if you use your Wise account balance in US dollars, the sending limit is $6 million. Additionally, you can pay using a direct debit (also known as an ACH transfer) from your bank account, a credit card, a debit card, Apple Pay, Google Pay, or another method. Regardless of how you finance the transfer, the receiver must have a bank account in order to receive funds.
Customer experience: The FAQ on Wise’s website is easily accessible, and its mobile app has a great user rating. Phone support is accessible around-the-clock.
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OFX
Best for avoiding transfer fees
Cost: Regardless of the amount sent, OFX does not impose transfer fees. Its markups on exchange rates typically range from 1.35 to 4.50%.
Speed: There is no option for same-day delivery from the United States. OFX typically receives your bank transfer in half a business day and, depending on the location, sends the money to your receiver in another one to three business days.
Transfer limits and options: There is no upper limit, and the sending minimum each transfer is $150. Unlike funding with cash, credit card, or other alternatives offered with some of the providers on our list, transfers can only be conducted between bank accounts.
Customer experience: OFX’s website FAQ and round-the-clock help line are useful resources. Users also give its apps excellent ratings.
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Xoom
Best for scheduling recurring international money transfers
Coverage from the U.S.: Nearly 160 countries and territories.
Cost: When you fund the transfer with a bank account or PayPal balance rather than a debit or credit card, Xoom often has minimal upfront fees, such $0 for a bank deposit. However, markups on exchange rates sometimes exceed 3%. Compared to international wire transfers offered by banks, Xoom is still typically less expensive (see what banks charge).
Speed: Regardless of the payment method, a lot of transfers can arrive in a matter of minutes. However, depending on variables like time zones or banking hours, some can take several days.
Transfer limits and options: In many countries, a delivery alternative is to pick up cash at a supermarket or other locations. Although sending restrictions differ, daily transactions cannot exceed $50,000. PayPal owns Xoom, thus you can fund a transfer using a PayPal account, bank account, or debit or credit card.
Customer experience: Email support and phone support are accessible in multiple languages between 9 a.m. and 9 p.m. ET. The internet platform offers user-friendly cost calculators and frequently asked questions, and mobile apps are well-reviewed.
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MoneyGram
Best for scheduling recurring international money transfers
Coverage from the U.S.: Over 200 countries and territories.
Cost: While costs for other payment methods are typically substantial, upfront fees for transfers made using a debit card are typically free. Rate markups on MoneyGram can exceed 2% and vary based on where you transfer the money.
Speed: Regardless of the method of payment, delivery may occur the same day, but it may take longer based on other variables and banking hours.
Transfer limits and options: In the nations we tested, MoneyGram’s maximum amount for an internet transfer is $5,000. It provides the benefit of physical locations, allowing users to pay with cash and have the money picked up by recipients, especially those without bank accounts. You can use credit and debit cards to make payments on its online platform. Apple Pay can be used to make payments through the smartphone app. Scheduling repeated transfers is another feature that MoneyGram provides.
Customer experience: Support via email, automated online chat and by phone is available, and prices, rates and other information may be obtained online readily. It has good ratings for its mobile apps.
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Western Union
Best for large global network
Cost: varies. Depending on the financing source and delivery method, fees for transfers up to $1,000 might range from less than $5 to more. Depending on the payment method, delivery method, and country of destination, Western Union’s rate markups might vary significantly.
Speed: Sending transfers to cash pickup sites and using a debit or credit card (or paying with cash in person) allows for same-day delivery, although the cost of the expedited service is higher. The least expensive transfers can take up to a week to reach the nations we looked at and require bank accounts for both sending and receiving money.
Transfer limits and options: Transfer limitations differ per country of destination on the Western Union website, for example, $5,000 to Mexico and $50,000 to India. The primary benefit of Western Union, one of the largest transfer companies in the world, is its network, particularly when it comes to in-person cash transfers and cash-pickup delivery choices.
Customer experience: Although there is phone help and live chat accessible around-the-clock, the website makes it difficult to compare conversion rates and makes it difficult to locate frequently asked questions.
How to choose among the best ways to send money internationally
There are a few things to think about when choosing a company for international money transfers. Here are some broad guidelines to assist you make a decision, along with explanations of words related to money transfers.
Definitions: Money Transfer Rates
The cost of your money transfer and the amount your receiver will receive are determined by three rates.
Exchange rate: The price of one currency in respect to another is known as the exchange rate. For instance, you would look up the value of one US dollar in euros if you wanted to convert US dollars to euros.
Midmarket rate: The exchange rate used by large banks to trade currencies with one another is known as the midmarket rate, interbank rate, or interbank exchange rate.
Exchange rate markup: The majority of companies price your transfer using an exchange rate markup. In order to benefit from the transfer, they offer their clients an exchange rate that is the midmarket rate plus an extra percentage, or markup. Your receiver will receive less money in their currency if the markup is larger.
General advice for international money transfers
1. Know how exchange rates work (and how to find the best). Exchange rate markups are one of the ways money transfer companies profit. The exchange rate you might discover on a currency exchange website like Bloomberg.com or Reuters.com is not often provided by transfer providers. These websites only display the value of one currency relative to another, but they are a useful place to start if you want to know what the best rate is right now. Pay attention to the exchange rate markup by examining the foreign currency amount when you use services like Western Union to check the exchange rate for an overseas transfer. The greater it is, the more money your beneficiary gets and the lower the markup.
2. Compare total transfer costs across multiple providers. Costs can be divided into two categories: exchange rate markup (see above) and upfront fees. Look for the service that offers the greatest exchange rate and the lowest cost. Transfers from online nonbank providers are typically less expensive than those from banks.
3. Avoid paying with a credit card. Some suppliers provide it, however there may be a larger upfront cost and additional expenses from your credit card issuer, such interest and cash advance fees. Direct bank account payments are typically more slower and far less expensive. Use a debit card, which will also cost less than a credit card, if you need money sent right away.