Money transfer companies make it fast, easy, and affordable to send money from the United States to countries around the world. If you or a loved one are living overseas for more than two months, you will benefit from a money transfer tool. Here are some of the best money transfer companies for sending money internationally, along with tips to get the best rates and lowest fees on these transfers.
When Do Expats Need Money Transfer Tools?
Money transfer tools reduce the cost of exchanging and sending money. This is helpful when you need to send money from the U.S. to an account overseas on a regular basis. Examples include:
- a parent sending money to their child studying internationally
- a digital nomad converting part of their U.S. paycheck for living expenses as they travel
- a retiree transferring payments from a U.S. pension or Social Security to a bank where they live.
If you are moving overseas permanently, you may also need to do larger financial transactions to purchase a car, a property, or a business. Money transfer tools can support these transactions, too, with fast processing speeds and transaction tracking.
Can Venmo or CashApp Send Money Internationally?
You may not be able to use your favorite U.S. money transfer tools outside of the U.S. Some popular cash transfer tools in the U.S only work within the U.S., for U.S. dollar transactions. For example, Venmo only works in the U.S. CashApp only works in the U.S. and the U.K. The U.K. version of CashApp has limited features and CashApp cannot send money between the two countries. Google Pay can send funds from the U.S. to different countries. However, to do this for many countries, Google Pay integrates with transfer tools like Western Union and Wise. You may save fees on transactions by signing up for those directly.
Best International Money Transfer Tools
New money transfer companies are starting up constantly, so many that it can be hard to choose the right one for you. This article shares five of the best for U.S. citizens spending time overseas.
How We Identified the Best Money Transfer Tools
For this article, we assessed major money transfer tools based on several factors:
- How many currencies do they convert to?
- How favorable are their exchange rates and fees for converting and sending U.S. dollars (USD)?
- Do they provide transparency, or exchange rate options, to empower their users?
- Lastly, are they easy to use and supported by a reliable company?
Reviewing popular money transfer tools, we assessed costs and conversion rates to convert and send $2500 USD into currencies used in popular destinations for U.S. expatriates. This included Euros, the currency of all E.U. countries; Mexican pesos; and Thai baht. We compared currency conversion rates and extra transaction fees to find the money transfer tools that get you the best return. And we focused on more established companies that provide accountability and accessible customer service.
All dollar amounts in the described costs are in USD.
Find the Best International Insurance
- Compare multiple quotes and coverage options
- Work with an insurance expert at no additional cost
- Find the best plan for your needs and budget
Wise: Transparent Fees, Excellent Conversion Rates, Convenient Card
Wise, formerly known as TransferWise, is an excellent choice for all types of travelers and immigrants. Wise has been providing money transfers since 2011. It is popular with travelers and expats for its convenience, fast speed, low fees, and consistently good exchange rates. Its bank transfer options can let you send, convert, and receive money within a few hours.
Wise provides complete transparency around their transfer fees and conversion rates, displaying a calculator for each transaction. For the $2500 sample, currency conversion fees ranged from $16 to $20, a clear and reasonable amount. Wise also had excellent currency conversion rates. With Wise, the resulting currency amount sent for both Euros and Mexican pesos was the highest in our comparison, and the amount for Thai baht was the second highest.
Travelers and digital nomads also appreciate Wise’s currency wallet and card options. With Wise’s currency wallets, an account holder can convert funds for up to five different currencies. Wise also offers a physical card that you can use for transactions, like a loaded debit card. The physical card costs US $10. ATM withdrawals with the card range from free to $1 + 1.75% of the amount. This is less expensive than standard bank card or credit card withdrawals, and there is no additional conversion fee.
CurrencyFair: European Security, Favorable Rates
CurrencyFair is another good option for international money transfers, especially between the U.S. and European countries. CurrencyFair is based in Ireland and regulated by the Central Bank of Ireland, and is stringent about security and licensing requirements. This means CurrencyFair transactions are trusted by financial institutions, and your money has some protection for transactions within the EU.
While CurrencyFair can transfer to over 150 countries, its list of currencies is relatively limited but expanding constantly. For the $2500 sample, conversion fees with CurrencyFair averaged $15. The resulting currency amount for the Thai Baht was the highest of those we surveyed and for Euros and Mexican pesos, the second highest.
CurrencyFair also lets you set up email rate alerts, telling you when exchange rates for your needs are favorable. When you’re notified of a rate that meets your standards, you can use CurrencyFair to convert your funds.
Western Union: 200+ Countries and Territories
Western Union is a good choice when you need money transfers that are reliable and globally accessible. Western Union is the oldest company on this list — it was founded in the United States in 1851! Originally sending telegraph messages, in the 1980s Western Union began to focus on global money transfers.
Today, Western Union remains a favored transfer company due to its stable reputation and blend of online and in-person services. Of the world’s 255 countries and territories, Western Union sends funds to over 200, including Ukraine. Their conversion and transfer fees for bank-account to bank-account transfers are reasonable, too. But Western Union fees soar for transfers to credit cards or as cash withdrawals. Their transaction calculator can help you choose the most affordable option.
Western Union’s many in-person locations let you transfer money to yourself (or to somebody else) and take it away as cash. Western Union partners with local businesses around the world for their in-person locations.
OFX: Standout for Transfers over $10,000
For large transfers without paying a fee, consider OFX. OFX focuses on transfers over $10,000. To use OFX, the minimum transfer is $1,000. OFX offers few additional services, focusing on providing the best service possible for those larger transactions.
Transfers under $10,000 incur a $10 fee. Transfers of $10,000 and over have no fee. The OFX standard exchange rate is less rewarding than other funds. However, OFX has tools to help users get better exchange rates and reduce exchange rate risks. As with CurrencyFair, you can hold an OFX conversion transaction until the exchange rate matches a limit you prefer.
Can I Use PayPal to Transfer Money Internationally? Yes, But Consider Xoom Instead
For people within the U.S., the money transfer tool PayPal is popular and very easy to use. But over the past decade, it has had ups and downs around sending funds outside the U.S. For example, in Thailand, using PayPal is subject to extra checks and restrictions. And PayPal fees and exchange rates are relatively high. Yet some people are still reluctant to move away from the familiarity of PayPal.
If you, or the people you are sending money to, like the convenience of PayPal, you will have a good experience with Xoom. In 2015, Paypal acquired the money transfer company Xoom, and honed it into a good way to send money internationally. Using Xoom, you can send money to a bank account, debit card, or mobile wallet. You can even pay bills overseas or fund a prepaid mobile phone.
The ease of using Xoom, and its connection to PayPal, are the main reasons to use it. Its conversion and fees meant that, in exchanging $2500 USD to Euros, you would receive 37 Euros less than if you used Wise. For converting funds to Thai baht and sending the money to Thailand, Xoom charged an additional $4.99 fee. And you would receive 490 baht less than if you used Wise. Xoom provides a convenient fee calculator. For older travelers, or parents supporting a child studying overseas, Xoom’s ease of use may make these fees acceptable.
Get our monthly newsletter filled with tips and information for people living, moving, and traveling outside of their home country.* *By submitting your email, you agree to receive monthly updates for expats, digital nomads, retirees, and more.
Transfer Money to a Bank Account ASAP for Deposit Insurance Coverage
Money transfer tools provide favorable exchange rates and quick transfer transactions. They are also safe. Still, after you’ve converted your money, be sure to transfer your funds to a bank account as soon as possible.
Why is this recommended? Money transfer tools are usually not covered by deposit insurance, especially for international transfers. This means that if the money transfer company fails suddenly, you are at risk of losing your money. Money transfer companies note this in their terms and conditions. For example, Western Union states clearly that they do not offer an escrow service, i.e, a way to hold funds long-term.
For most people, the risks around using money transfer tools are acceptably low. If you are concerned, especially for very large transactions, consider an international bank transfer for maximum security. When you transfer from bank to bank directly, your transfer is covered by deposit insurance guidelines.
Sending money abroad? Choose Xe Money Transfer for a seamless and cost-effective international money transfer experience.
Tips for Free or Lower Cost International Transfers
Here are tips to help you maximize your converted funds around international transfers.
- Send funds to and from bank accounts. For many money transfer tools, sending funds to or from bank accounts is a free transaction. Sending funds to or from credit cards usually incurs a fee.
- In addition to the methods listed above, a wire transfer may be among the best ways to transfer your money from country to country.
- Larger transactions with money transfer companies usually have lower fees and better exchange rates.
- If you need to turn converted funds into cash, try to do one or two large cash transactions instead of multiple small transactions. This keeps your cash fees lower.
- Take the time to check out what your main bank and preferred credit card charge for international transactions. If exchange rates are good, you may find that these services are competitive for large or one-off transactions.
- If exchange rates are fluctuating, choose a tool like CurrencyFair that provides a rate alert or holds transactions until rates match your desired level, like OFX. Even 1% can make a difference.
There is a learning curve to getting the most out of using a money transfer tool. By taking the time to learn, you’re on the pathway to confidence and to getting the most out of your international funds.
See Also:
- 5 Tips for Choosing A New Bank While Living Abroad
- Can You Live on Social Security While Living Abroad?
- 5 Frequent Financial Mistakes That Cost Expats Thousands
- The Best Apps to Manage Your Money Abroad
