For many immigrants and families living in the United States, receiving money from abroad is part of everyday life. Whether it’s financial support from relatives, business payments, or a gift for a special occasion, the method you choose can affect how much you actually receive.
The costs, speed, and security of international payments vary widely. By understanding how transfers work and comparing your options, you can save money and avoid common mistakes. This guide explains the main ways to receive money from abroad, plus strategies to protect your funds and minimize fees.
Understanding the Process of Receiving Money
When you receive money from abroad, the payment travels through multiple systems. Typically, there’s your U.S. bank, the sender’s bank, and sometimes an intermediary bank or transfer service in between. Each step can add time and potential fees.
To ensure the process goes smoothly, you’ll need to provide clear and accurate bank details, such as:
• Bank name and branch address
• Account number and routing number
• Bank identifier code (BIC) or SWIFT code for international wire transfers
Mistakes in these details can delay your transfer by several business days or result in extra charges. For more information about how international banking works, visit the Consumer Financial Protection Bureau’s guide to money transfers.
Common Ways to Receive Money
There are three main ways to receive money from abroad. The best choice depends on how quickly you need the funds and how much you’re willing to pay in fees.
Bank Transfer
A direct bank transfer into your checking or savings account is reliable and secure. Many people prefer this option because funds are deposited straight into their account. However, banks often charge intermediary fees and may use less favorable exchange rates, which lowers the total amount you receive.
If you’re new to the U.S., setting up a checking account is an important first step. Our guide on How to Open a Bank Account as an Immigrant explains the process and required documents.
Digital Wallets and Apps
Digital wallet services such as Wise,PayPal, and Xoom have become popular for international transfers. They often provide faster service and competitive rates compared to banks. However, you may need to move funds from the digital wallet to your bank account, which can involve an extra step and sometimes additional fees.
Money Orders and Cheques
Though slower and less common, it’s still possible to receive funds by international cheque or money order. These require you to physically visit your bank, and the bank may hold the funds for several days to ensure they clear.
The Role of Exchange Rates
The exchange rate determines how much foreign currency is converted into U.S. dollars. Even small differences can make a big impact, especially with large sums.
Banks often automatically convert incoming foreign funds, sometimes at less favorable rates. Specialist services may let you hold the funds in the original currency until you choose the best time to convert, giving you more control.
To compare rates, use reliable tools like XE.com or OANDA. This helps you decide whether to wait for better rates or proceed immediately.
Comparing Fees and Total Costs
Fees can be confusing because they’re not always clearly stated. Some of the most common include:
• Transfer fees from the sender’s bank or service
• Intermediary bank fees along the route
• Currency conversion fees applied during exchange
The cheapest option isn’t always the one with the lowest transfer fee. A service with zero upfront fees but poor exchange rates can cost more in the end. Always check whether fees are deducted from the amount you receive or paid by the sender.
If you also send money to family overseas, knowing how fees work on both ends can help you plan better. See our guide on Best Way to Send Money Overseas from US for tips on minimizing costs when sending and receiving.
Specialist Providers vs. Traditional Banks
Specialist providers focus only on international money transfers. They usually offer better exchange rates and lower fees than banks. Many also provide real-time tracking, which helps you see where your transfer is at every stage.
Banks remain a safe choice, especially if you prefer face-to-face service or need to handle large sums. However, they tend to be slower and more expensive than dedicated services. For immigrants who receive frequent international payments, a specialist provider is often the more cost-effective solution.
Ways to Minimize Transfer Fees
There are simple ways to keep more of your money:
• Use a multi-currency account if you receive funds in different currencies.
• Ask the sender to choose a service with low transfer fees and competitive rates.
• Schedule transfers in advance rather than using urgent or same-day services, which usually cost more.
• Track exchange rates regularly to convert money when rates are most favorable.
For more money-saving tips, check out our article on 9 Smart Money-Saving Tips for Immigrants.
Processing Times and Tracking
Processing times vary depending on the method.
• Bank transfers usually take one to three business days.
• Digital wallet transfers may be same-day or even instant.
• International cheques or money orders can take weeks to clear.
Whenever possible, ask the sender for a tracking number or transaction reference number. This makes it easier to monitor the transfer and resolve any issues quickly.
Safety and Security Tips
Security should always be a top priority. Use only reputable, well-established providers and check that websites are secure before sharing personal information. Avoid paying extra fees upfront or responding to suspicious emails about your transfer.
For more safety guidelines, visit the Consumer Financial Protection Bureau or check your state’s attorney general website. If you receive money regularly, consider creating a separate bank account just for international payments to keep your finances organized.
Making the Most of Your Money Transfers
Receiving money from abroad doesn’t need to be stressful or expensive. By understanding how transfers work, comparing exchange rates, and choosing secure services, you can make sure your funds arrive safely and in full.
Review your options regularly and adjust as needed, especially if you receive frequent payments or large sums. A little preparation and smart planning can help you keep more of your money while protecting your financial future.
