What happens when you send money to another country

When you initiate an international bank transfer, your money does not move directly from your account to the recipient's. Instead, it travels through a chain of intermediary banks, each one taking a cut and adding a processing step. Your bank sends the funds to a correspondent bank in the recipient's country, which then routes it to the final receiving bank. The whole process typically takes three to five business days, though some routes are faster and some slower depending on the countries involved and the banks you use.

The path your money takes depends on whether the two countries share a direct banking relationship. If they do, the transfer moves in two hops: your bank to the recipient's bank. If they do not, your bank sends the money to an intermediary bank in a third country that has relationships with both, adding another step and another fee. This is why transfers to some countries cost more and take longer than others.

Key Takeaways

  • International transfers require the recipient's full name, account number, bank name, and SWIFT code or IBAN — missing or incorrect details will delay or reject the transfer.
  • Your bank will charge a flat fee, a percentage of the amount, or both; the recipient's bank may also deduct a fee from what arrives, so ask both banks what you will actually pay.
  • The transfer typically takes three to five business days, but some routes take longer if intermediary banks are involved.
  • Exchange rates vary between banks and between the rate your bank quotes you and the rate it actually uses, so compare options before you send.
  • Specialized money transfer services like Wise or OFX often charge less and move money faster than traditional banks for smaller amounts.

What information you need from the recipient

Before you can send the transfer, you need the recipient's full legal name exactly as it appears on their bank account, their account number, and their bank's name and location. You also need either a SWIFT code (used in most countries) or an IBAN (International Bank Account Number, used in Europe and some other regions). The SWIFT code is an eight or eleven-character code that identifies the specific bank branch. The IBAN is a longer alphanumeric code that includes the country, bank, and account information in one string.

Ask the recipient to provide this information from their bank statement or by logging into their online banking. Do not guess or abbreviate. A single digit wrong in the account number or SWIFT code will cause the transfer to be rejected or sent to the wrong account. Some banks will not process a transfer if the recipient's name does not match the account holder's name exactly, so confirm spelling and middle initials.

If the recipient's country uses IBAN, use that instead of a SWIFT code — it is more reliable. If you have both, provide both. Your bank will use whichever one it needs.

How to initiate the transfer through your bank

Log into your online banking or call your bank's international transfer line. You will be asked to enter the recipient's information, the amount you want to send, and the currency. Your bank will then show you the exchange rate it is offering and the total fees. Write down both numbers before you confirm — this is the rate and fees you are locked into, and they may differ from what you see later.

Some banks require you to register a recipient before you can send money to them, which adds a day or two to the process. Others let you send when ready. If registration is required, your bank will send a verification code to the recipient's phone or email, and they must confirm it before the transfer can go through. This is a security step to prevent fraud.

Once you confirm, your bank will debit your account when ready. The money is now in your bank's system, but it has not yet reached the recipient. Your bank will give you a reference number — save this. If something goes wrong, you will need it to trace the transfer.

Fees and exchange rates: what you actually pay

Your bank charges a fee for sending the transfer. This is usually a flat amount (typically $15 to $50 depending on the country) or a percentage of the amount (often 1 to 3 percent), or both. The recipient's bank may also charge a fee to receive it, which is deducted from the amount that arrives. Your bank cannot always tell you in advance what the receiving bank will charge, so ask the recipient to check with their bank or look at their previous transfers to see what was deducted.

The exchange rate your bank uses is also not the real-time market rate. Banks add a markup of 1 to 3 percent on top of the actual rate, which is how they profit on currency conversion. If you are sending $1,000 USD to India, your bank might quote you a rate of 82 rupees per dollar when the real market rate is 83. That difference adds up quickly on larger amounts.

Before you send, compare what your bank charges against what a specialized money transfer service charges. Services like Wise, OFX, and Remitly often have lower fees and better exchange rates for amounts under $10,000. They are slower than banks for some routes but faster for others, so check the timeline for your specific corridor.

Timeline: when the money arrives

Most international transfers take three to five business days from the moment your bank sends them. The clock starts when your bank debits your account, not when you initiate the transfer. Weekends and holidays do not count as business days, so a transfer sent on Friday may not arrive until Wednesday or Thursday.

Some routes are faster. Transfers within Europe using SEPA (Single Euro Payments Area) typically arrive in one business day. Transfers to Canada and Mexico through certain banks can arrive in one to two days. Transfers to countries without direct banking relationships with your bank's correspondent network can take a week or longer.

Your bank should tell you the expected delivery date when you confirm the transfer. If the money does not arrive by that date, contact your bank with your reference number. The bank can trace the transfer through the correspondent bank system and find out where it is stuck. Do not assume the money is lost — it is almost always in the system somewhere.

What to do if the transfer goes wrong

If the recipient says they never received the money after the expected delivery date has passed, contact your bank when ready with your reference number. Your bank will file a trace request with the correspondent banks to locate the transfer. This process can take one to two weeks. If the money was sent to the wrong account because of an error in the recipient's details, recovery is difficult — the receiving bank may refuse to return it without a court order.

If your bank made an error in the recipient's information, the bank is responsible for recovering the funds. If you provided incorrect information, recovery depends on the receiving bank's willingness to help. This is why confirming every detail with the recipient before you send is critical.

Some banks offer a service called payment reversal for a fee, which attempts to recall the transfer within a narrow window (usually 24 hours). Ask your bank if this is available and what it costs before you send, in case you need it.

Alternatives to bank transfers for smaller amounts

If you are sending less than $5,000, a specialized money transfer service may be faster and cheaper than your bank. Wise converts your money at the real market rate with a small transparent fee, and transfers arrive in one to two business days for most countries. OFX and Remitly work similarly, though their rates and speeds vary by corridor. These services are regulated and insured, so your money is protected.

For very small amounts or informal transfers, some people use peer-to-peer payment apps like PayPal or Wise's personal transfer feature, though these typically have lower limits and higher fees than bank transfers. Use these only if the recipient is comfortable with the method and the amount is small enough that the fee does not eat into what they receive.

Frequently Asked Questions

Can I cancel an international transfer after I send it?

It depends on how much time has passed. If you cancel within a few hours and your bank has not yet sent the transfer to the correspondent bank, your bank can stop it and refund your money minus a cancellation fee. Once the transfer has left your bank's system, cancellation is much harder. Contact your bank when ready with your reference number if you need to cancel.

Why does the amount the recipient gets differ from what I sent?

The recipient's bank deducted a receiving fee, or the exchange rate your bank used was different from what you expected, or both. Ask the recipient to check their bank statement to see what fee was charged. This is why it is important to ask both banks about fees before you send.

What is the difference between SWIFT and IBAN?

SWIFT is a code that identifies a specific bank branch worldwide. IBAN is a standardized account number format used mainly in Europe and some other regions. If the recipient's country uses IBAN, provide that. If it does not, use SWIFT. Many banks accept both.

Is it cheaper to send cash or use a money transfer service?

For amounts over $5,000, a bank transfer is usually cheaper because the percentage fee is lower. For amounts under $5,000, a money transfer service like Wise is often cheaper because the flat fee is smaller relative to the amount. Compare the total cost (fee plus exchange rate markup) for your specific amount and corridor before you decide.

How do I know if my transfer was successful?

Your bank will send you a confirmation with a reference number when the transfer is sent. The recipient should see the money in their account within the expected timeframe. Ask them to confirm they received it and check the amount against what you sent minus fees. If there is a discrepancy, ask the recipient to check their bank statement for a receiving fee.