How to Transfer Money Between U.S. and International Accounts
Transferring money between the United States and other countries is a common need for immigrants, expatriates, and international businesses. Whether sending money to family abroad, paying overseas tuition, or managing global investments, understanding how international transfers work can save you time and money.
While U.S. banks provide reliable options for global transfers, new fintech platforms have made the process faster, cheaper, and more transparent. However, each method comes with its own fees, exchange rates, and security levels — so choosing the right one matters.
In this guide, we’ll explain everything you need to know about transferring money between U.S. and international accounts: how it works, the available options, common fees, and practical tips to ensure safe and affordable transactions.
1. Understanding How International Transfers Work
When you send money abroad, your funds move through a network of correspondent banks that communicate using the SWIFT system (Society for Worldwide Interbank Financial Telecommunication).
Each bank in this network acts as a “middleman,” ensuring funds reach the correct foreign account. The process can take anywhere from 1 to 5 business days, depending on the countries and banks involved.
Newer fintech solutions bypass the SWIFT system entirely, using digital wallets or peer-to-peer technology to send money almost instantly — often at a lower cost.
2. Information You Need to Send Money Internationally
To make a successful international transfer from the U.S., you’ll typically need:
- Recipient’s full name (as it appears on their account)
- Recipient’s bank name and address
- Account number or IBAN (for international accounts)
- SWIFT/BIC code of the recipient bank
- Purpose of transfer (in some cases)
- Currency type
Having accurate details helps prevent delays and avoids costly errors or reversals.
3. Common Methods of Transferring Money Abroad
There are several ways to transfer funds internationally from the U.S., each with distinct advantages and disadvantages.
1. Bank Wire Transfers
The most traditional method involves sending funds directly through your U.S. bank to another international bank.
✅ Pros:
- Secure and reliable
- Can handle large amounts
- Directly connected to your existing bank account
⚠️ Cons:
- High fees (typically $25–$50 per transfer)
- Unfavorable exchange rates
- Processing can take several days
Best used for large or urgent payments, like tuition or property transactions.
2. Online Transfer Services (Fintechs)
Digital platforms like Wise (formerly TransferWise), Remitly, WorldRemit, and OFX have transformed international transfers.
✅ Pros:
- Lower fees and better exchange rates
- Transparent pricing
- Fast transfers — sometimes within minutes
- Easy mobile or web access
⚠️ Cons:
- Transfer limits for new users
- May require additional identity verification
These platforms are perfect for regular personal transfers, such as sending money to family abroad or paying freelancers.
3. PayPal and Similar Digital Wallets
PayPal, Revolut, and Skrill allow cross-border payments between users.
✅ Pros:
- Fast and familiar for online users
- Convenient for freelancers or e-commerce transactions
- Easy to use between personal accounts
⚠️ Cons:
- High conversion fees (up to 4%)
- Not all countries support PayPal withdrawals
- May hold funds temporarily for security reasons
PayPal is best suited for small payments, not large transfers.
4. Cash Transfer Services
Companies like Western Union and MoneyGram offer cash-based transfers that allow recipients to pick up funds in person.
✅ Pros:
- No need for a bank account
- Global network with physical locations
- Instant delivery options
⚠️ Cons:
- High fees and exchange rate markups
- Risk of fraud if not used carefully
Ideal for emergencies or sending money to areas with limited banking access.
5. Cryptocurrency Transfers
More people are using Bitcoin, USDC, and other digital currencies to move money globally.
✅ Pros:
- Near-instant transfers
- Low transaction costs
- No traditional banking restrictions
⚠️ Cons:
- Price volatility
- Limited acceptance
- Requires technical knowledge
Crypto transfers can be efficient for tech-savvy users but should be used with caution due to regulatory differences between countries.
4. Receiving Money From Abroad
Receiving international payments into a U.S. account usually follows the same process but may involve additional fees.
Most banks charge $10–$20 per incoming wire, and the sender must cover international banking fees.
To receive funds:
- Provide your account number, routing number, and SWIFT code.
- Specify the currency (usually USD).
- Confirm your bank’s international address.
Digital banks and fintechs often charge no receiving fees, making them attractive for freelancers or remote workers.
5. Exchange Rates and Hidden Costs
Exchange rates significantly affect how much money actually arrives at the destination.
Banks typically apply a 2–4% markup above the mid-market rate, while fintechs like Wise use the real exchange rate and charge a transparent service fee.
Example:
- Sending $1,000 to Brazil through a bank might result in $940 received.
- Using Wise, the recipient might get $985 — a big difference over time.
Always compare rates before confirming any transfer.
6. Transfer Speed
Speed depends on the chosen method:
| Method | Delivery Time | Best For |
|---|---|---|
| Bank Wire | 1–5 business days | Large or official payments |
| Wise / Remitly | Minutes to 2 days | Regular personal transfers |
| PayPal | Instant (between users) | Online payments |
| Western Union | Minutes | Cash pickup transfers |
| Crypto | Seconds to minutes | Tech-savvy users |
Fintechs generally offer the best balance of speed, cost, and convenience.
7. Transfer Limits
Most banks set higher limits — often $50,000 or more per day — while fintechs usually cap transfers at $2,000–$10,000, depending on verification level.
If you need to send large sums (e.g., property purchases), a bank wire is usually required.
For recurring transfers, choose a platform with flexible limits and transparent fees.
8. Security and Compliance
Every legitimate transfer method must comply with AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations.
To keep your funds safe:
- Always verify the platform’s licensing and reviews.
- Avoid sending money to unknown individuals.
- Use secure networks when logging into banking apps.
Both banks and fintechs use encryption and fraud monitoring, but fintechs typically offer better real-time tracking of your transaction status.
9. Best Platforms for Immigrants
Immigrants sending money to family abroad often prioritize low cost and reliability. These platforms stand out:
- Wise: Transparent pricing and best exchange rates.
- Remitly: Fast delivery to Latin America and Asia.
- Xoom (by PayPal): Ideal for sending to Brazil, Mexico, and the Philippines.
- WorldRemit: Good for small recurring transfers.
- Revolut: Combines transfers, currency exchange, and debit cards.
Each of these services supports multiple currencies and provides easy account setup, even without a full U.S. credit history.
10. Taxes and Reporting
If you’re transferring large amounts (typically over $10,000), U.S. banks and platforms are required to report the transaction to the IRS and FinCEN for anti-money-laundering compliance.
Personal transfers — such as sending money to family — are not taxed, but business-related transactions may have reporting obligations.
Keep digital records of all transactions for tax and financial documentation.
11. Tips to Save Money on Transfers
- Compare exchange rates and fees across platforms.
- Avoid sending money on weekends (when rates are worse).
- Use fintechs for smaller, frequent transfers.
- Choose the recipient’s local currency when possible.
- Link your checking account instead of a credit card — it reduces fees.
Even small changes in fees or rates can save hundreds of dollars annually.
12. The Future of International Transfers
Global money transfers are becoming faster, cheaper, and more digital.
The rise of blockchain technology, instant payment networks, and central bank digital currencies (CBDCs) is reducing costs and improving transparency.
Fintech platforms continue to lead innovation, focusing on cross-border accessibility and fair pricing — especially for immigrants and global workers.
Conclusion
Transferring money between U.S. and international accounts doesn’t have to be complicated or expensive. By understanding the available methods — from traditional bank wires to modern fintechs — you can choose the best balance of speed, cost, and security.
For immigrants, students, and professionals alike, leveraging the right transfer tools ensures that your hard-earned money arrives quickly and safely where it’s needed most.
In 2025, with the growing range of digital solutions, sending money abroad from the U.S. has never been more efficient, transparent, and accessible.
