What happens when you send money to another country
When you send money internationally, your bank or money transfer service converts your dollars, routes the payment through one or more intermediary banks, and delivers it to a recipient's account abroad. The process takes longer than a domestic wire — usually three to five business days — because each country's banking system has its own rules, and the money often passes through correspondent banks that take a cut along the way.
The recipient gets paid in their local currency at an exchange rate set by the sending bank or service, not by you. That rate is almost never the mid-market rate you see online; banks and transfer services add a markup that can range from 1 to 5 percent. You also pay a flat fee — typically $15 to $50 from a bank, or $0 to $15 from a dedicated transfer service — plus the recipient's bank may charge them to receive it.
The total cost of sending $1,000 internationally can easily be $40 to $80 when you add the fee, the exchange rate markup, and any receiving fees. Choosing the right service matters because the same $1,000 might cost half as much through one provider as another.
Key Takeaways
- Banks charge higher fees and worse exchange rates than dedicated money transfer services, so compare costs before you send.
- The recipient's country, their bank, and the amount you send all affect how long the money takes to arrive and what it costs.
- You need the recipient's full name, account number, bank name, and SWIFT or IBAN code — getting these details wrong delays or blocks the transfer.
- Some services offer faster delivery (same-day or next-day) for an additional fee, while standard transfers take three to five business days.
- Exchange rates and fees vary daily, so the cost you see when you start the transfer is the cost you pay — rates don't change mid-transaction.
Banks versus dedicated money transfer services
Your bank can send money internationally, but it is usually the most expensive option. Banks charge $15 to $50 per transfer, apply an exchange rate markup of 2 to 5 percent, and take three to five business days. They also have limited hours for customer service if something goes wrong.
Dedicated money transfer services — companies like Wise, OFX, Remitly, and MoneyGram — typically charge $0 to $15, offer exchange rates closer to mid-market, and sometimes deliver money the same day or next day. The trade-off is that you need to set up an account online and verify your identity before you can send. For a one-time transfer, a bank may be simpler. For regular transfers or larger amounts, a transfer service usually saves you money.
Some services specialize in specific corridors — sending to Mexico, the Philippines, or India, for example — and offer better rates and faster delivery on those routes because they handle high volume. If you send to the same country repeatedly, research services that focus on that destination.
Information you need before you send
The recipient must provide their full legal name (exactly as it appears on their bank account), their account number, and their bank's name and location. You also need either a SWIFT code (used worldwide) or an IBAN (International Bank Account Number, used in Europe and some other regions). Without these details, the money may be returned or held in limbo while the bank tries to match it to an account.
Ask the recipient to confirm these details with their bank, because a single digit wrong in an account number or a misspelled name can cause the transfer to fail. Some services let you test a small transfer first to verify the account is correct before you send a larger amount.
You will also need to provide your own bank account information and proof of identity (a driver's license or passport). If you are sending more than $10,000, federal law requires the service to report it, and you may be asked additional questions about the purpose of the transfer and your relationship to the recipient.
How exchange rates and fees work
The exchange rate you see advertised online is the mid-market rate — the rate banks trade with each other. When you send money, you do not get that rate. Instead, you get the rate the sending bank or service offers, which includes their markup. A bank might show you a rate that is 3 percent worse than mid-market; a transfer service might show you a rate that is 0.5 to 1 percent worse.
The fee is separate from the exchange rate. A bank might charge you $30 flat plus a poor exchange rate. A transfer service might charge you $5 flat plus a better exchange rate. The total cost — fee plus the difference between mid-market and the rate you receive — is what matters.
Once you lock in a rate and confirm the transfer, that rate is may provide. If the market rate moves before the money arrives, you still get the rate you agreed to. This protects you from currency swings during the transfer window.
Timing: how long it actually takes
A standard international wire takes three to five business days. The money leaves your account immediately, but it travels through the receiving country's banking system, which may process it overnight or over a weekend. Weekends and holidays in either country add time.
Faster options exist. Some transfer services offer next-day or same-day delivery for an additional fee — often $10 to $25 extra. These work because the service has local bank accounts in the recipient's country and can pay out from there immediately, then settle with your bank later. Same-day delivery is most common for transfers to major financial centers like Canada, the UK, and Australia.
If the recipient's bank is small or in a remote area, or if the receiving country has strict banking controls, the transfer may take longer than five days. Ask the service what the typical timeline is for the specific country and bank before you send.
What can go wrong and how to fix it
The most common problem is incorrect recipient information. If the account number is wrong or the name does not match the account exactly, the receiving bank will reject it. Some banks return the money automatically; others hold it while they try to contact the recipient. This can take two to four weeks.
If your transfer is rejected or delayed, contact the sending service or bank immediately with your transaction reference number. They can check the status and, if the money was returned, reissue it. Do not send the money again until you confirm the first transfer failed, or you may end up sending it twice.
Fraud is rare with established banks and major transfer services, but it happens. Never send money to someone you do not know or trust, and never wire money to pay for something you have not verified independently. If you are sending to a business, call them directly using a phone number you find yourself — not one provided in an email.
Limits and reporting requirements
Banks and transfer services have daily and monthly limits on how much you can send. A new account might be limited to $5,000 per day; after you have been a customer for a while, the limit may increase to $10,000 or more. Check the service's terms before you try to send a large amount.
Any single transfer of $10,000 or more triggers a Currency Transaction Report (CTR) filed with the U.S. Treasury. This is routine and legal; it does not mean you are under investigation. The service will ask you to confirm the purpose of the transfer and your relationship to the recipient. Structuring multiple smaller transfers to avoid the $10,000 threshold is illegal, so do not do that.
Some countries have their own restrictions on receiving money from abroad. A few nations limit the amount or require the recipient to report it to their tax authority. If you are sending to an unusual destination, ask the transfer service whether there are local rules you should know about.
Frequently Asked Questions
Can I cancel a transfer after I send it?
It depends on how far the money has traveled. If you cancel within a few minutes of sending, most services can stop it. Once it has left your bank and entered the international system, cancellation is difficult or impossible. Contact the service immediately if you need to cancel; do not wait.
What if the recipient's bank charges them a fee to receive the money?
Many banks charge the recipient $5 to $15 to receive an international wire. You cannot control this, but you can ask the recipient to confirm their bank's policy before you send. Some transfer services offer "pay-out" options where the recipient picks up cash at a local agent instead of using a bank account, which may avoid the fee.
Is it cheaper to send cash through a friend or family member?
Physically carrying cash is risky and illegal if you cross a border with more than $10,000 without declaring it. A wire transfer or money transfer service is safer, traceable, and often cheaper than you think once you compare the total cost.
Do I need a bank account to send money internationally?
You need a bank account to send from a bank. Some transfer services let you pay with a debit card or credit card instead, though they may charge a higher fee for card payments. You always need a bank account or mobile money account for the recipient to receive the funds.
What is the difference between SWIFT and IBAN?
A SWIFT code identifies a specific bank branch worldwide and is used in most countries. An IBAN is a standardized account number used mainly in Europe and some other regions. You need one or the other; ask the recipient which their bank uses. Some banks require both.