Everything you need to know before sending money internationally

Sending money internationally shouldn't require a financial degree, yet many people struggle to navigate the maze of fees, exchange rates, and transfer methods without clear information. The right information on how to send money internationally can transform what feels like a complex financial transaction into a simple way to support loved ones across borders.

When you understand how international money transfers actually work, you gain the power to make smarter choices that save both time and money. This comprehensive send money internationally information guide cuts through the confusion to help you send more of your money to the people who matter most.

The basics of cross-border transactions

An international money transfer is the electronic movement of funds from one country to another, allowing you to send money to family, friends, or businesses across borders through banks, money transfer operators, or digital payment platforms. These transfers require converting your local currency to the recipient's currency and navigating different banking systems, regulations, and time zones to ensure your money arrives safely.

When you're sending money abroad, you're not just moving money from point A to point B. You're participating in a complex global financial network that connects thousands of banks, payment processors, and regulatory bodies across different countries. No time to read? Want to start sending money now? Visit our mobile app download page to get started today!

Every money transfer across country borders involves multiple steps behind the scenes. Your money travels through correspondent banks, clearing houses, and payment networks before reaching its final destination. Understanding this journey helps you make better decisions about which service to use and what to expect during the process.

Key terms you need to know:

• Exchange rates: The price of one currency expressed in terms of another currency. These rates fluctuate constantly throughout the day based on global market conditions, economic news and trading volumes. When you send money internationally, the exchange rate determines how much your recipient actually receives in their local currency.

• Transfer fees: The charges that banks or money transfer services apply for processing your transaction. These can appear as flat fees (like $25 per transfer), percentage-based fees (such as 2% of the transfer amount), or a combination of both. Some providers may also include currency conversion margins within their exchange rates rather than showing them as separate fees.

• SWIFT/BIC codes: An 8 to 11-character code that identifies specific banks in the global financial network. Think of it as an international postal code for banks that tells the system exactly where to route your money. Every bank that handles international transfers has its own unique SWIFT code.

• IBAN (International Bank Account Number): A standardized format for bank account numbers used primarily in Europe, the Middle East, and other regions. An IBAN contains up to 34 characters that include the country code, bank identifier, and individual account number, reducing errors in cross-border transactions.

• Remittance: Money sent by migrants or expats back to their home country, typically to support family members. This represents a major flow of international money transfers globally, with many people regularly sending money to help with education, healthcare, housing and daily expenses.

Essential steps to send money securely

1. Research reputable providers

Your first priority should be confirming that any money transfer service you consider is properly licensed and regulated in your country. In the United States, legitimate providers must register with the Financial Crimes Enforcement Network (FinCEN) and hold money transmitter licenses in the states where they operate.

Look for clear licensing information on the provider's website, typically found in the footer or "About Us" section. Reputable services display their registration numbers and regulatory compliance openly because they have nothing to hide.

Red flags to watch for:

• No physical address or only a PO Box listed

• Pressure to send money immediately without proper verification

• Requests to send money through unusual methods like gift cards or unreputable cryptocurrency providers

• Promises of prizes or threats of legal action if you don't send money

• Extremely low fees that seem unrealistic compared to established providers

Check customer reviews across multiple platforms, not just the provider's own website. Look for patterns in complaints. Occasional issues are normal, but repeated problems with lost funds, poor customer service, or hidden fees should make you reconsider.

2. Compare Exchange Rates and Fees

Understanding the true cost of your transfer requires looking beyond the advertised transfer fee. Many providers make money through the exchange rate markup through the difference between the real mid-market rate and the rate they offer you.

The mid-market rate is the fairest exchange rate available, sitting halfway between the buy and sell prices banks use when trading with each other. You can check current mid-market rates on financial websites to understand how much markup you're paying.

Some providers advertise low or no transfer fees but compensate with less favorable exchange rates. Others charge higher upfront fees but offer rates closer to the mid-market rate. Always calculate the total cost by considering both elements together.

For example, if you're sending $1,000 to Nigeria:

• Provider A: No transfer fee, but exchange rate gives your recipient ₦750,000

• Provider B: $5 transfer fee, but exchange rate gives your recipient ₦765,000

• Result: Provider B delivers ₦15,000 more despite the fee

Transfer fees can vary significantly based on several factors. The amount you're sending, destination country, payment method, and delivery speed all influence the final cost. Paying with a bank account typically costs less than using a credit card, while faster delivery often comes with premium pricing.

3. Collect your recipient’s details carefully 

Accuracy is everything when providing recipient information for international transfers. A single typo in an account number or misspelled name can delay your transfer for days or even result in funds being sent to the wrong person.

Essential information you'll need:

• Recipient's full legal name: This must match exactly what appears on their bank account or government ID. Even small differences like missing middle names or nicknames can cause problems.

• Complete address: Most providers require the recipient's residential address for compliance reasons. PO Boxes typically aren't accepted for security and regulatory purposes.

• Bank account details: Depending on the destination country, you'll need either a standard account number, IBAN, or other local format. Some countries use additional routing numbers or branch codes.

• SWIFT/BIC code: This identifies the recipient's bank in the international network. Some smaller banks might use an intermediary bank's SWIFT code, so verify this with your recipient.

• Purpose of transfer: Many countries require you to specify why you're sending money, such as family support, education expenses, or property purchase. This helps authorities prevent money laundering and ensures compliance with local regulations.

Double-check every detail with your recipient before initiating the transfer. Consider doing a small test transfer first if you're sending a large amount to a new recipient.

4. Verify Transfer Speed

Transfer speed varies dramatically depending on your chosen method and destination. While some digital services, like Sendwave, can deliver funds within minutes to certain countries, traditional bank wires might take 3-5 business days or longer.

Several factors affect delivery time:

• Payment method: Transfers funded by bank accounts often take longer to process than those paid with debit cards, as banks need time to clear the funds.

• Destination country: Some countries have more developed banking infrastructure, allowing faster processing. Rural areas might experience additional delays.

• Time zones and banking hours: If you initiate a transfer on Friday evening, it might not process until Monday in the destination country. Local holidays in either country can also cause delays.

• Compliance checks: Larger amounts or transfers to certain countries may trigger additional security reviews, adding time to the process.

Ask your provider for realistic delivery timeframes based on your specific transfer details. If your recipient needs money urgently, confirm whether expedited options are available and understand any additional costs involved.

Avoiding Common Pitfalls

The most expensive mistake in international money transfers is falling for a scam. Fraudsters often target people sending money abroad because these transactions are typically irreversible once completed.

Never send money to someone you've only met online or haven't verified through independent means. Romance scams, fake emergency requests, and bogus investment opportunities specifically target international transfer customers.

Common scam scenarios to avoid:

• Someone claiming to be a government official demanding immediate payment to avoid arrest or deportation—real government agencies don't operate this way. Any request to send money to claim lottery winnings or inheritance from unknown relatives is always fraudulent.

• Business email compromise scams are increasingly sophisticated. Criminals hack into legitimate business emails and redirect international payments to their accounts. Always verify payment instructions through a separate communication channel before sending large amounts.

Technical mistakes that cost money:

• Entering incorrect recipient details is surprisingly common and can be costly to fix. Some providers charge amendment fees to correct errors, while others might require you to cancel and restart the transfer entirely.

• Forgetting about currency fluctuations can impact your transfer's value. If you're quoted a rate but don't complete the transfer immediately, the rate might change by the time you send the money. Some providers offer rate locks for a small fee if you need time to arrange funds.

• Using the wrong transfer method for your needs wastes money. Sending small amounts through traditional banks often means fees eat up a significant percentage of your transfer. Conversely, using expensive express services for non-urgent transfers unnecessarily increases costs.

Regulatory compliance issues:

• Failing to provide accurate information about the source and purpose of funds can delay or block your transfer. Be prepared to show documentation for large transfers, such as pay stubs, tax returns, or sale contracts.

• Attempting to avoid transfer limits by splitting large amounts into multiple smaller transfers (called structuring) is illegal and can result in account closure and investigation. If you need to send large amounts, work with your provider to do it properly.

• Not keeping proper records creates problems during tax season. International transfers above certain thresholds must be reported to tax authorities, and you'll need documentation to prove the purpose and legitimacy of your transfers.

Cost-Saving Tips and Tools

Timing your international money transfer strategically can save significant amounts, especially for large transfers. Exchange rates fluctuate throughout the day based on global market conditions, and even small improvements in rates can make a meaningful difference.

Monitor exchange rate trends for a few days or weeks if your transfer isn't urgent. Many providers offer rate alerts that notify you when your desired exchange rate becomes available.

Choosing the right provider type:

Digital money transfer specialists typically offer better value than traditional banks for international transfers. These companies focus exclusively on cross-border transactions, allowing them to optimize their operations and pass savings to customers.

Banks often charge a significant fee per international wire plus unfavorable exchange rates because they treat these transfers as a premium service. Digital providers have built their entire business around making international transfers affordable and accessible.

For regular monthly transfers to support family, establishing a relationship with one provider can unlock benefits. Some services offer loyalty programs, reduced fees for frequent senders, or better rates for higher volume customers.

Payment method optimization:

How you fund your transfer significantly impacts the total cost. Bank account transfers (ACH in the US) typically offer the lowest fees but take longer to process. Debit cards cost slightly more but provide faster processing.

Credit cards usually carry the highest fees and may be treated as cash advances by your card issuer, incurring additional charges and immediate interest. Only use credit cards for international transfers in genuine emergencies.

Some providers, including Sendwave, offer cash pickup options in select destination countries, which can be convenient for recipients without bank accounts. 

Mobile apps and technology:

Specialized money transfer apps have revolutionized sending money abroad by eliminating overhead costs associated with physical locations. These apps let you send money from anywhere, compare rates instantly, and track your transfer in real-time.

Services designed specifically for diaspora communities understand the unique needs of regular remittance senders. They offer features like recurring transfers, multiple recipient management, and customer support in relevant languages.

At Sendwave, we've built our entire service around making transfers simple, secure, and affordable for people supporting loved ones abroad. Our app focuses on the countries that matter most to migrant communities, offering competitive rates and low or no transfer fees depending on where you're sending.

Bulk transfers and special situations:

If you're sending money for specific purposes like tuition payments or property purchases, explore specialized services. Some providers offer education payment platforms that send funds directly to schools, potentially saving on fees and providing payment confirmation for visa applications.

For business payments or large one-time transfers, negotiate rates with providers. Many services offer better rates for transfers above certain thresholds, though you'll need to provide additional documentation for compliance purposes.

Consider forward contracts if you need to send a large amount in the future but want to lock in today's exchange rate. This protects you from unfavorable rate movements, though you won't benefit if rates improve.

When It's Time to Initiate Your Transfer

Once you've compared providers, gathered recipient information, and understand all costs involved, you're ready to initiate your transfer. Before clicking "send," take a moment to review everything one final time. To make things easy, the Sendwave mobile app offers 24-7 support to help you along the way.

Create a checklist of all recipient details and verify each item against the information they provided. A few extra minutes of checking can save days of delays and stress if something goes wrong.

Pre-transfer verification steps:

• Confirm the total amount your recipient will receive after all fees and exchange rate conversions. Make sure this matches what they're expecting, especially if they need a specific amount for bills or expenses.

• Screenshot or save all transaction details before confirming. This includes the exchange rate, fees, expected delivery date, and transaction reference number. These records prove invaluable if any issues arise.

• Understand your cancellation rights before sending. Some providers allow cancellations within a certain timeframe if the transfer hasn't been processed, while others lock in transfers immediately.

Regulatory requirements for large transfers:

Large international transfers from the United States trigger automatic reporting to federal authorities under the Bank Secrecy Act. This is routine compliance, not an accusation of wrongdoing, but you should keep clear records of the transfer's purpose.

Be prepared to provide additional documentation for large transfers:

• Source of funds (pay stubs, bank statements, sale contracts)

• Purpose of transfer (invoices, tuition bills, property documents)

• Recipient relationship (family documents, business contracts)

Some countries have restrictions on how much money can be received from abroad or require recipients to declare large transfers. Check destination country regulations to ensure your recipient won't face unexpected complications.

During the transfer process:

Most digital providers guide you through each step with clear instructions. Take your time and don't rush, especially if you're using a new service for the first time.

Things to do:

1. Create and verify your account with a government-issued ID

2. Enter recipient details and transfer amount

3. Choose your payment method and delivery speed

4. Review all details and confirm the exchange rate

5. Fund the transfer from your chosen payment source

6. Receive confirmation with tracking information

Keep all confirmation emails and reference numbers. These are essential if you need to contact customer support or track your transfer's progress.

Post-transfer monitoring:

Track your transfer's progress through the provider's app or website. Most services offer real-time updates showing when funds are collected, processed, and delivered.

Notify your recipient once you've sent the money and share the expected arrival time. For cash pickup transfers, provide them with the reference number and any required passwords.

If the transfer doesn't arrive within the promised timeframe, contact customer support immediately. Have your transaction reference number ready along with all transfer details.

Thoughts on simplifying international money transfers

Sending money abroad has never been easier. What was once a slow, paperwork-heavy process can now be done from your phone in minutes. By understanding the essentials of exchange rates, transfer fees, and security, you can make smarter decisions that save money and reduce stress.

Here are a few ways to simplify and strengthen your transfer experience:

• Prepare before you send: Identify your needs. Whether you’re supporting family, covering education costs, or helping during emergencies. Choose a provider like Sendwave that fits those goals.

• Look beyond the lowest fee: The cheapest option isn’t always the best. Prioritize reliability, speed, and strong customer support alongside affordability.

• Leverage technology: Mobile-first transfer apps like Sendwave make it easy to send money securely and quickly, removing the need for in-person visits or complicated paperwork.

• Match the service to your habits: Regular senders benefit from providers that understand their preferred countries and offer consistent, transparent service.

• Use available tools: Set rate alerts, track transfers in real time, and reach out to customer support when needed. Small optimizations can add up to meaningful savings and more money reaching your loved ones.

Supporting family and friends across borders should feel simple and stress-free. By choosing a trusted digital provider like Sendwave and following best practices, you can ensure your money arrives safely, quickly, and with minimal cost, helping you stay connected to the people who matter most.