Sending money to loved ones or business partners abroad is a common need for many families and immigrants in the U.S. Knowing how to send money overseas safely is essential to prevent fraud and unnecessary losses. Scammers often target people who send money internationally, using fake services or manipulating fees and exchange rates.
This guide will help you understand the safest ways to send money internationally, recognize warning signs, and choose reliable services that protect both you and the recipient.
Understanding Common Money Transfer Scams
When sending money internationally, you may encounter different types of scams. These include fake websites, misleading rates, or urgent requests designed to pressure you into acting quickly.
Some common scams include:
Fake Services: Fraudulent companies pretending to be trusted providers.
Urgent Requests: Scammers claiming a family emergency to pressure you to send cash quickly.
Upfront Fees: Requests for you to pay additional costs before a transfer begins.
Identity Theft: Asking for your bank account or credit card details under the pretense of verification.
Taking extra time to verify both the service and the situation can prevent costly mistakes. The Consumer Financial Protection Bureau offers advice on spotting and reporting suspicious transfers.
Choosing a Safe Way to Send Money
There are several ways to send money abroad, but not all are equally safe. The right method depends on your needs and the recipient’s situation.
Bank Transfers
Sending money through your checking or savings account directly to the recipient’s bank account is one of the most secure methods. Banks are regulated and must follow strict safety protocols.
However, transfer fees can be higher, and banks may add exchange rate markups that lower the total amount the recipient receives. Always double-check the recipient’s account information before confirming the transfer. Even small mistakes can delay the process by several business days.
Digital Wallets and Mobile Apps
Digital wallets and apps are popular for their convenience and speed. Some trusted providers include:
PayPal — Widely used for both personal and business transfers worldwide.
Wise (formerly TransferWise) — Known for transparent fees and midmarket exchange rates.
Remitly — Offers various delivery options, including bank deposit and cash pickup.
These services often have lower fees than banks and allow you to send money online or from a mobile phone. Always ensure you download apps directly from official stores and enable two-factor authentication to protect your account.
Cash Pickup Services
Some recipients may not have access to a bank account, making cash pickup a practical choice. Companies like Western Union and MoneyGram allow recipients to collect cash at thousands of physical locations worldwide.
Because cash transfers are difficult to reverse, only use this method for trusted family members or close contacts. Double-check the receiver’s details to avoid issues at pickup.
Comparing Costs and Exchange Rates
Different services have different cost structures, which can be confusing if you’re not careful.
Transfer Fees: Fixed or percentage-based charges for processing the transfer.
Exchange Rate Markup: The difference between the midmarket rate and the rate you’re offered.
Extra Charges: Additional costs depending on payment type, like debit or credit card usage.
To get the best deal, compare services before making a transfer. Exchange rates and fees can vary depending on the destination country, transfer amount, and how quickly you need the funds delivered.
For tips on reducing costs, see our guide Receiving Money from Abroad Made Simple: Tips for U.S. Families.
Avoiding Hidden Fees
Hidden fees are one of the most common frustrations for people sending money overseas.
Read Carefully: Review the full terms and conditions before sending money.
Ask Questions: Request a clear breakdown of fees and exchange rates.
Compare Rates: Services advertising low fees may offer poor exchange rates.
Pick Wisely: Direct bank transfers may have fewer hidden fees than credit card payments.
Verifying the Recipient and Service Provider
Before sending money, confirm that both the recipient and provider are legitimate.
Recipient Verification: Confirm their full name, account details, and pickup location if applicable.
Provider Verification: Make sure the company is licensed and regulated.
Reputation Check: Look for customer reviews on sites like Better Business Bureau and Trustpilot.
Secure Communication: Avoid sending sensitive details over unsecured messaging apps or email.
Setting Limits and Tracking Your Transfer
Most banks and services set transfer limits for security reasons. Knowing these limits helps you plan larger transfers.
Always request a tracking number or receipt. Services like Wise, Western Union, and PayPal provide real-time updates, often through text messages or mobile notifications. This ensures you can confirm when the funds reach the recipient.
Choosing the Right Payment Method
The best payment method depends on your needs:
Bank Transfer: Secure and reliable for large sums but slower.
Mobile Wallet: Quick and affordable for smaller, frequent transfers.
Cash Pickup: Useful when the recipient does not have a bank account.
Debit or Credit Card: Convenient for same-day transfers but typically higher fees.
For more details about how payment methods affect costs and safety, read our article Best Way to Send Money Overseas from US.
Security Practices to Protect Yourself
Follow these simple steps to stay secure:
Protect Accounts: Use strong passwords and two-factor authentication.
Monitor Transfers: Enable alerts to track activity on your bank or PayPal account.
Stay Private: Never share login information or sensitive details with others.
Take Your Time: Scammers rely on urgency. Pause and verify before sending money.
Final Steps to Safely Send Money Abroad
Knowing how to send money overseas safely ensures your funds reach the right recipient while minimizing risks. By choosing trusted services like PayPal, Wise, Western Union, or MoneyGram and by comparing fees and exchange rates, you can keep more money in your loved ones’ hands.
A few extra steps today can prevent major losses tomorrow, allowing you to send money internationally with confidence and peace of mind.
