The basic steps: what happens when you send money abroad

When you transfer money to a foreign bank account, your bank sends the funds through an intermediary network—usually SWIFT (the Society for Worldwide Interbank Financial Telecommunication)—to the recipient's bank. Your bank debits your account when ready, but the money does not arrive at the foreign account on the same day. The process involves multiple banks, currency conversion if needed, and compliance checks, all of which take time.

The speed and cost depend on which method you use. A wire transfer through your bank's international department is the most common route for larger amounts. Money transfer services like Western Union, MoneyGram, or newer fintech platforms like Wise and OFX offer faster delivery for smaller amounts, though they charge different fees. Some services deliver within hours; others take three to five business days.

You will need specific information about the recipient's account before you start: their full name, the bank name, the account number, and usually a SWIFT code or IBAN (International Bank Account Number). Without these details, your bank will not process the transfer.

Key Takeaways

  • Wire transfers through your bank are standard for large amounts but typically cost $15 to $50 and take three to five business days.
  • Money transfer services and fintech platforms often deliver faster and cheaper for amounts under $5,000, with fees ranging from $2 to $15 depending on the destination country.
  • You must provide the recipient's SWIFT code, IBAN, or account details before initiating any transfer, and incorrect information will delay or reverse the payment.
  • Exchange rates vary by provider and method—your bank's rate is usually less favorable than what fintech services offer, which can cost you 2 to 4 percent on the converted amount.
  • The recipient's bank may charge a receiving fee of $10 to $25, which comes out of the amount that arrives, so confirm this with them before sending.

Wire transfers through your bank

A wire transfer is the most widely accepted method for sending money internationally. You initiate it through your bank's online platform, by phone, or in person at a branch. Your bank will ask for the recipient's full name, account number, bank name, SWIFT code, and sometimes the bank's address. The SWIFT code is an eight or eleven-character identifier that routes the money to the correct institution.

Your bank debits your account the same day you send the wire, but the money typically arrives at the recipient's bank in three to five business days. Some banks offer expedited wires that arrive in one to two days, though these cost more. The recipient's bank may then hold the funds for an additional day while they verify the incoming transfer.

Wire transfer fees vary by bank. Most U.S. banks charge between $15 and $50 for an outgoing international wire. Some banks charge less if you maintain a high balance or have a premium account. The exchange rate your bank applies is usually 1 to 3 percent less favorable than the mid-market rate—meaning you lose money on the conversion. If you are sending $10,000 and the mid-market rate is 1.10 but your bank applies 1.07, you receive 3 percent less in the foreign currency.

Money transfer services and fintech platforms

Services like Wise, OFX, Remitly, and Paysend offer an alternative to traditional bank wires. These platforms specialize in international transfers and often charge lower fees and offer better exchange rates than banks. They are particularly useful for amounts under $5,000 or for transfers to countries where bank wires are slow or expensive.

Wise (formerly TransferWise) is one of the most transparent options. It shows you the exact mid-market exchange rate, charges a flat fee based on the amount and destination (typically $2 to $15), and delivers money within one to three business days. OFX charges a percentage-based fee (usually 1 to 2 percent) and also delivers within one to three days. Remitly charges a flat fee plus a percentage and can deliver within minutes for a premium, or within one to three days for standard service.

To use these services, you create an online account, provide the recipient's bank details, and fund the transfer from your bank account or debit card. The money is converted at the service's rate and sent to the recipient's bank. These platforms are regulated but are not banks themselves, so your funds are held in partner banks during the transfer process.

Information you need before you start

Gather the recipient's details before you initiate any transfer. You will need their full legal name (exactly as it appears on their bank account), the name of their bank, their account number, and either a SWIFT code or IBAN. An IBAN is a standardized account number used in Europe and many other countries; a SWIFT code is an eight or eleven-character code that identifies the bank.

If the recipient does not have this information readily available, they can find it on their bank statement, by logging into their online banking, or by calling their bank directly. Providing incorrect details—a misspelled name, a wrong account number, or a mistyped SWIFT code—will cause the transfer to fail or be returned, which can take one to two weeks and may incur a reversal fee from your bank.

Some countries require additional information. For transfers to India, you may need the recipient's IFSC code instead of a SWIFT code. For transfers to China, you may need the recipient's Chinese bank code. Ask your bank or the transfer service whether any special codes are required for the destination country.

Exchange rates and hidden costs

The exchange rate is where most people lose money on international transfers. Banks explore a markup to the mid-market rate (the real-time rate between currencies). If the mid-market rate is 1.10 USD to 1 EUR, your bank might explore a rate of 1.07, pocketing the difference. On a $10,000 transfer, this markup costs you about $300.

Fintech services typically explore a smaller markup—often 0.5 to 1 percent—or show you the exact mid-market rate with a transparent fee. Wise advertises its mid-market rate explicitly, so you know exactly what you are paying. OFX and Remitly explore a small markup but are still usually better than banks.

The recipient's bank may also charge a receiving fee, typically $10 to $25, which is deducted from the amount that arrives. This fee is not visible to you until the money lands in their account. If you are sending $5,000 and the recipient's bank charges $25, they receive $4,975. Confirm with the recipient whether their bank charges a receiving fee and how much it is.

Timing: when the money actually arrives

Bank wire transfers take three to five business days on average. This timeline includes the time for your bank to process the outgoing wire, the time for the intermediary banks to route the transfer, and the time for the recipient's bank to receive and post the funds. Weekends and holidays extend this timeline—a wire sent on Friday may not arrive until the following Wednesday.

Some banks offer expedited wires that arrive in one to two business days, but these cost extra (usually $25 to $50 on top of the standard wire fee). Money transfer services are faster: Wise typically delivers within one to three business days, and some services like Remitly offer same-day or next-day delivery for a premium fee.

The recipient should not expect the money to be available when ready after it arrives at their bank. Many banks hold incoming international transfers for one business day while they verify the source and check for fraud. If the recipient needs the money urgently, let them know to expect a one to two-day delay after you send it.

What to do if the transfer fails or is delayed

If your transfer does not arrive within the expected timeframe, contact your bank or the transfer service when ready. Provide the reference number or tracking number you received when you sent the money. Your bank can check the status with the intermediary banks and the recipient's bank.

If the transfer was rejected because of incorrect information (a wrong account number or SWIFT code), your bank will attempt to return the funds to you. This reversal can take one to two weeks. Some banks charge a reversal fee of $15 to $25. Once the funds return to your account, you can correct the information and send the transfer again.

If the transfer was sent correctly but the recipient's bank is holding it for compliance reasons, this can take several days. Banks in some countries perform additional checks on incoming international transfers, especially for larger amounts. The recipient may need to contact their bank to confirm the transfer and release the funds.

Frequently Asked Questions

Can I send money to a bank account in any country?

Most countries accept international wire transfers, but some have restrictions. North Korea, Iran, Syria, and a few others have limited banking access due to international sanctions. Some countries require special documentation or have limits on the amount you can send. Check with your bank or the transfer service about the specific destination country before you send.

What is the difference between a SWIFT code and an IBAN?

A SWIFT code identifies the bank; an IBAN identifies the specific account within that bank. SWIFT codes are used worldwide; IBANs are standard in Europe and some other regions. You typically need both for a wire transfer, though some services accept one or the other. Ask the recipient which one their bank requires.

Why does the amount that arrives differ from what I sent?

The difference is usually the exchange rate markup and the recipient's bank receiving fee. If you sent $5,000 and the recipient received $4,850, the $150 difference likely includes a 2 to 3 percent exchange rate markup (about $100 to $150) and a receiving fee ($10 to $25). Ask the recipient to confirm the receiving fee with their bank so you know the actual cost.

Is it safer to use a bank wire or a money transfer service?

Both are safe if you use a regulated provider. Banks are FDIC-insured in the U.S. and regulated by the Federal Reserve. Money transfer services like Wise and OFX are regulated as money transmitters by state authorities and the Financial Crimes Enforcement Network (FinCEN). The main risk is sending money to the wrong account due to incorrect details, which can happen with either method. Always verify the recipient's information before you send.

Can I cancel a transfer after I send it?

It depends on how far the transfer has progressed. If you cancel within a few hours of sending, your bank may be able to stop it. Once the money has left your bank and entered the intermediary network, cancellation becomes difficult or impossible. Some services allow cancellation within 24 hours; others do not. Contact your bank or transfer service when ready if you need to cancel.