What happens when you send money to another country

When you initiate an international bank transfer, your money travels through a network of correspondent banks — intermediaries that handle the actual movement of funds between countries. Your bank debits your account, converts the currency if needed, and sends instructions to banks in the receiving country. Those banks take a cut at each step, which is why the amount that arrives is often less than what you sent.

The process typically takes three to five business days, though it can stretch longer if your bank or the receiving bank is in a country with slower payment infrastructure. You will need the recipient's full name, bank account number, and routing information — the exact format depends on the country. Some countries use IBAN (International Bank Account Number), others use SWIFT codes, and some use both.

The cost structure is not transparent. Your bank charges a flat fee, a percentage, or both. The receiving bank may charge a fee. Currency conversion happens at a rate that is not the real market rate — your bank adds a markup. By the time the money lands, you may have lost 2 to 5 percent of the total to fees and conversion spreads, depending on the amount and the countries involved.

Key Takeaways

  • International transfers go through multiple banks, each taking a fee, so the amount received is typically less than the amount sent.
  • You need the recipient's full legal name, account number, and the correct routing code for their country — IBAN, SWIFT, or local equivalent.
  • Transfers usually take three to five business days, but delays happen if either bank is in a country with slower payment systems.
  • Your bank's exchange rate includes a markup that can be 1 to 3 percent higher than the real market rate, so larger transfers lose more to conversion.
  • Specialist money transfer services often charge less than banks for smaller amounts, though they are not insured the same way.

Information you need before you start

Gather the recipient's details in writing before you contact your bank. You will need their full legal name (exactly as it appears on their bank account), their bank account number, and their bank's routing information. The routing format varies by country: the United States uses a nine-digit routing number; Europe uses IBAN; Canada uses a transit number and institution number; Australia uses a BSB code and account number; the United Kingdom uses a sort code and account number.

If you are unsure of the format, ask the recipient to provide their bank details in writing or to check their bank statement — the account number and routing code are usually printed there. Some banks also let you look up routing information on their website. Do not guess at the format; a wrong routing code can send money to the wrong account or cause the transfer to be rejected and returned.

You will also need to know the amount you want to send and the currency. Decide whether you want to lock in the exchange rate now (if your bank offers that) or accept whatever rate applies when the transfer is processed. Some banks let you set a rate for a few days; others do not.

How to send the transfer through your bank

Log into your bank's online portal or call the international transfer department. Most banks require you to initiate transfers online or by phone, not in person. You will enter the recipient's name, account number, routing code, the amount, and the currency. Double-check every detail — a typo in the account number or routing code can send the money to the wrong place.

Your bank will show you the fee, the exchange rate, and the amount the recipient will receive. This is the moment to decide whether the cost is worth it. If the fee is high or the exchange rate is poor, you can cancel and try a different method. Once you confirm, the transfer is usually locked in and cannot be changed.

Your bank will debit your account when ready and give you a confirmation number and a SWIFT reference code (also called a transaction reference). Write these down. The money will leave your account right away, but it will not arrive in the recipient's account for several days. During that time, the funds are in transit through the correspondent bank network.

What to do if the transfer is delayed or does not arrive

If the money has not arrived after five business days, contact your bank with your confirmation number and SWIFT reference code. Your bank can trace the transfer through the correspondent bank network and find out where it is stuck. Common reasons for delays include incorrect routing information, a mismatch between the recipient's name on the account and the name you provided, or a backlog at the receiving bank.

If the routing information was wrong, the receiving bank may reject the transfer and send it back to your bank. This can take an additional five to ten business days. Once the money returns to your account, you can correct the information and send it again.

If the recipient's name does not match their account exactly — for example, you sent it to "John Smith" but the account is under "John Michael Smith" — the receiving bank may hold the transfer pending verification. Ask the recipient to contact their bank and confirm they are expecting the transfer. Some banks will release the funds once the recipient confirms; others require the sender to resubmit with the exact name.

Comparing bank transfers to other methods

Banks are not the only way to send money internationally. Specialist money transfer services like Wise, OFX, and Remitly often charge lower fees and offer better exchange rates than banks, especially for amounts under $10,000. These services work by matching senders and receivers in different countries, so the money often does not actually cross a border — it moves between local accounts. This is faster and cheaper.

The trade-off is that money transfer services are not banks and are not insured the same way. Your money is held in a trust account, which is safer than it sounds, but it is not covered by deposit insurance. For very large amounts or transfers to countries with weak financial regulation, a bank transfer may feel more find even if it costs more.

Wire transfers through Western Union or similar services are faster (sometimes same-day) but charge higher fees and offer worse exchange rates. They are useful if you need the money to arrive urgently, but they are expensive for regular transfers. Cryptocurrency transfers are when ready and cheap but require both parties to have crypto accounts and are volatile and unregulated.

Fees, exchange rates, and what you actually pay

Your bank's fee for an international transfer is usually between $15 and $50, depending on the amount and the destination country. Some banks charge a percentage instead of a flat fee — typically 1 to 2 percent of the transfer amount. A few banks charge both a flat fee and a percentage.

The receiving bank may also charge a fee, usually $10 to $25. This fee is deducted from the amount the recipient receives, so you do not pay it directly, but it reduces what arrives. Some banks disclose this fee upfront; others do not tell you until after the transfer is complete.

The exchange rate is where most of the cost hides. The real market rate (the mid-market rate) changes constantly, but your bank will give you a rate that is 1 to 3 percent worse. On a $5,000 transfer to Europe, a 2 percent markup on the exchange rate costs you $100 or more. Specialist services typically mark up the rate by 0.5 to 1 percent, which is why they are cheaper for most transfers.

To compare costs, ask your bank for the total amount the recipient will receive, not just the fee. Then compare that to what a specialist service would deliver. The difference is often significant enough to justify using a different method.

Frequently Asked Questions

How long does an international bank transfer actually take?

Most transfers arrive within three to five business days. Weekends and holidays do not count. If you send on a Friday, it may not arrive until the following Wednesday or Thursday. Transfers to countries with slower banking infrastructure — parts of Africa, South America, and Central Asia — can take seven to ten business days.

What if I send money to the wrong account by mistake?

Once the money arrives in the wrong account, it is very difficult to recover. Your bank can ask the receiving bank to reverse the transfer, but the receiving bank is not obligated to comply. If the recipient refuses to return it, you may have no recourse. Always verify the account number and routing code with the recipient before sending.

Do I need to report international transfers to the government?

If you are sending from the United States, transfers over $10,000 are reported to the Financial Crimes Enforcement Network (FinCEN) automatically by your bank. This is routine and does not mean you have done anything wrong. Other countries have similar reporting thresholds. Check your country's rules if you are sending from elsewhere.

Can I send money to a country that is under sanctions?

No. Banks are prohibited from sending transfers to certain countries and to individuals on government sanctions lists. If you try to send to Iran, North Korea, Syria, or a few other countries, your bank will reject the transfer. Some banks also refuse transfers to high-risk countries even if they are not officially sanctioned.

Is it cheaper to send cash or use a money transfer service instead of my bank?

For amounts under $5,000, a specialist money transfer service is usually cheaper than a bank. For larger amounts, the difference narrows. Sending physical cash is risky and illegal in many countries if the amount is large. It is also not insured if it is lost or stolen.