Many immigrants living in the United States regularly send money back home to support loved ones. Whether it’s helping a family member with living expenses, paying for education, or providing emergency funds, sending money overseas is an important part of staying connected. But figuring out the best way to send money overseas from US can be confusing. Different services offer various features, fees, and exchange rates that can affect how much your recipient actually receives.
This guide will compare popular international money transfer options, explain how to avoid hidden fees, and help you find a safe and affordable way to send money abroad.
Step 1: Understand Your Options
There are several ways to send money internationally, each with pros and cons. The right choice depends on factors like how quickly you need the money delivered, the destination country, and whether your recipient prefers a bank deposit, cash pickup, or mobile wallet.
Bank Transfers
Using your bank account to transfer money is a common method. Most major banks allow international wire transfers, which move funds directly from your account to the recipient’s bank account.
Pros:
Secure and reliable
Funds sent directly to a bank account
Good for large transfers
Cons:
Higher transfer fees
Slower delivery, often 3–5 business days
Exchange rate markups can make transfers expensive
Check with your bank about their fees upfront. Some banks even let you send money online through online banking without visiting a branch.
For more information about opening a bank account, check out our guide on How to Open a Bank Account as an Immigrant in the U.S.
Money Transfer Services
Companies like Western Union and MoneyGram specialize in fast money transfers with worldwide networks of physical locations.
Pros:
Same day transfers are available in many cases
Recipients can receive money in cash at local pickup points
Wide availability, even in rural areas
Cons:
Transfer fees can be high for urgent transfers
Exchange rates are often less favorable
For urgent needs or when your recipient does not have a bank account, cash pickup can be a convenient option.
Online Money Transfer Apps
Digital services like Wise (formerly TransferWise), Remitly, PayPal, and Xoom allow you to send money online directly from your phone or computer.
Pros:
Transparent pricing with clear fees upfront
Fast and easy to use
Often better exchange rates than banks
Multiple delivery methods like bank deposits, mobile wallets, or cash pickups
Cons:
Transfer limits may apply
Requires internet access and account setup
For many families, these apps provide a balance of speed, cost, and convenience. Some apps even offer referral bonuses or discounts for first-time users, which can help you save a little extra money on initial transfers. This makes them especially appealing for immigrants who send money abroad frequently.
Step 2: Compare Fees and Exchange Rates
When you send money, pay attention to two main costs: transfer fees and exchange rate markup.
Transfer fees: A fixed charge or percentage of the transfer amount. This varies depending on the service, payment method, and delivery method.
Exchange rate markup: The difference between the midmarket rate and the rate offered to you. Even a small markup can significantly reduce the amount your family receives.
Here’s an example: If you send money internationally using a bank with a $30 flat fee and a poor exchange rate, your recipient may lose $50 or more compared to a lower-cost service.
Many services now allow you to calculate total costs upfront. Websites like Wise and Remitly let you preview costs before you complete the transfer. Comparing multiple providers ensures you get the most value for your money.
Also, pay attention to whether the exchange rate updates in real time. Rates can fluctuate throughout the day due to time zones and global currency changes, so timing can make a difference.
Step 3: Choose the Best Payment and Delivery Method
Your payment method and delivery method affect both speed and cost.
Payment Methods:
Debit card: Faster than a bank transfer but may have higher fees.
Credit card: Convenient but often carries extra fees and may count as a cash advance with your credit card issuer.
Bank account: Cheapest for large transfers but slower.
PayPal balance: Works well if you already have a PayPal account.
Delivery Methods:
- Bank deposit: Direct to your recipient’s account.
- Mobile wallet: Funds delivered to an app on your recipient’s phone.
- Cash pickup: Best if your family member does not have a bank account.
Some services even offer door-to-door delivery in certain countries, though this is less common. Always check available options and fees before making a transfer.
The right combination depends on your recipient’s needs and what services are available in the destination country.
Step 4: Watch for Hidden Fees and Scams
Not all international transfers are equal. Some companies advertise low fees but hide costs in unfavorable exchange rates or unexpected service charges.
Tips to stay safe:
Always check the total cost, including exchange rate and transfer fees.
Avoid services that don’t clearly show fees upfront.
Verify that the company is licensed and regulated.
Never share your full account information or receiver’s details with anyone you don’t trust.
Be cautious of emails or texts promising free money or urgent requests.
The Consumer Financial Protection Bureau offers advice on protecting yourself from scams when sending money overseas.
Consider starting with smaller transfers to test a new service before sending large amounts.
Step 5: Plan Ahead to Save Money
If you send money abroad regularly, small changes can lead to big savings:
Schedule transfers when exchange rates are favorable.
Avoid using credit cards unless necessary.
Compare services each time—fees and rates vary by country and service provider.
Consider setting up a dedicated savings account just for remittances.
Take advantage of loyalty programs or discounts for repeat customers.
By planning ahead, you can stretch your funds and make sure your family gets the most benefit.
Frequently Asked Questions About Sending Money Internationally
How long does it take for funds to arrive?
Delivery times vary depending on the service and delivery method. Bank transfers may take several business days, while cash pickups can be ready the same day.
Are there limits on how much I can send?
Yes, many services have transfer limits, especially for new accounts. Check with the provider before you transfer money internationally.
What information do I need to send money?
You’ll usually need:
Your recipient’s full name and address
Their bank name and account information if sending to a bank account
A valid form of ID if your family member is picking up cash
Can I track my transfer?
Most reputable services provide tracking numbers or notifications so you know when your family has received the funds.
Choosing the Best Way to Send Money Overseas from US
Finding the best way to send money overseas from US depends on your goals. Consider the speed of delivery, total cost, and what works best for your family.
For fast, same-day cash, services like Western Union are a good choice.
For affordable transfers with clear pricing, online platforms like Wise or Remitly are excellent options.
For large transfers directly to a bank account, a traditional wire transfer might be best.
By understanding your options and comparing services, you can make smart decisions that save money and keep your family connected.
For more tips about saving money, check our articles about How to Shop for Food and Essentials in the U.S. – Where to Find the Best Deals or 6 Smart Tips for Furnishing Your Apartment on a Budget in the U.S.
