Look, we've all been there. You need to send money to someone outside your country, and suddenly you're drowning in bank jargon, hidden fees, and ridiculous wait times. I've spent way too many hours figuring this stuff out the hard way, so I wrote this guide to save you the headache.
When you send money internationally, you're basically asking your bank to talk to another bank somewhere else in the world. They use networks like SWIFT (nothing speedy about it, ironically) to pass your money around until it reaches the right place. It's like a relay race, but with your cash.
International bank transfers aren't rocket science, but they're definitely not as simple as paying your buddy back for pizza. Your money has to jump through regulatory hoops, currency exchanges, and sometimes several middleman banks that all want a piece of the action.
I learned this when I had to send a down payment for a destination wedding venue in Mexico. My bank quoted me one fee, but the venue received $120 less than I sent! Those mysterious "intermediary bank charges" nobody warned me about took a bite out of my transfer. Not cool.
Look, if you're going to make international payments regularly, you absolutely need to understand the difference between using your regular bank, an online specialist, or one of those newer fintech apps that are shaking things up. Each has pros and cons, and I'll break it down without the corporate mumbo-jumbo.
Before you send your hard-earned cash overseas, here's what actually matters:
I once used my regular bank to send money to my cousin in Italy. They charged me $45 for the wire, took 4 days, AND gave a terrible exchange rate. The next time, I used Wise and saved about 3% overall while my cousin got the money in less than 24 hours. Lesson learned.
For businesses, these considerations multiply. My friend runs a small design agency with clients in Singapore, London, and Toronto. She wasted thousands on bank fees until she figured out a better system using multiple currency accounts. More on that clever hack later.
I've personally tried most of these services, so here's my unfiltered comparison:
Service
What They Charge
Speed Reality
Transfer Limits
Exchange Rate Tricks
Who It's Actually Good For
Your Local Bank
$25-50 + sneaky exchange markup
Glacial (1-5 days)
Usually high or none
They absolutely rake you (2-4% off mid-market)
When you don't care about money and hate convenience
SWIFT Wire
$20-45 + mystery intermediary fees
Also slow (1-5 days)
Usually unlimited
Varies, but generally terrible
Sending to obscure places other services don't reach
Wise
0.4-0.7% total, upfront
Pretty quick (1-2 days usually)
$1M per go
Almost none (0-0.5%)
People who can do basic math and want more money to arrive
Revolut
0-0.5% depending on your plan
Sometimes minutes, sometimes a day
Varies by how fancy your account is
Decent weekdays, worse weekends (0-1%)
Frequent travelers who make lots of smaller transfers
PayPal/Xoom
Highway robbery (2.5-4% + fees)
Quick at least (minutes to a day)
$10K per transfer
Terrible (3-4% markup)
When convenience trumps cost and you're in a rush
OFX
Sliding scale of 0.4-1.5%
1-2 business days
No real cap for businesses
Better than banks (0.5-1.5%)
Regular business payments without the bank drama
I actually started using Wise after a British client refused to pay my $75 bank wire fee (fair enough). I was shocked to discover I ended up with MORE money in my account even after paying Wise's fee myself, compared to what I would've received through my regular bank. The difference was all in the exchange rate.
My neighbor runs an online shop importing handcrafts from Southeast Asia. She swears by OFX for payments over $5k because their rates improve with larger amounts. For smaller vendor payments, she uses Revolut Business. Smart!
I'm going to break this down into exactly what you need to do, based on the countless transfers I've made (and occasionally messed up):
Before starting any international transfer, you've gotta know and collect:
I once had a transfer to Canada delayed three days because I didn't include the recipient's full middle name. These details really matter, and most transfer failures happen because someone got sloppy here.
Look, your regular bank is probably the WORST option for international wire transfers. I've found that:
Traditional banking institutions absolutely love to charge high upfront fees while also skimming 2-4% off the exchange rate. Meanwhile, online transfer specialists usually charge lower fees AND give exchange rates much closer to what you see on Google.
Unlike traditional banks, SquareFi allows companies to send and receive international transfers via SWIFT, SEPA, and ACH with transparent pricing and no hidden fees.
My brother-in-law works in corporate treasury and says even huge companies get ripped off on currency exchange until they get wise to this game. His company saved over $30k yearly just by switching from bank transfers to a specialized forex service for their international payments.
If you run a business sending money abroad regularly, call your bank and straight-up ask for better rates. They won't offer unless you push, but they can often do MUCH better than their published rates if you've got decent volume.
OK, so actually making the transfer works differently depending on who you're using:
I remember when sending money internationally meant physically going to my bank with a written form! Now I handle all my transfers from my phone while watching Netflix. Most decent services let you set up and complete the whole process online in minutes.
Just be ready for security steps - especially for your first transfer or larger amounts. My first Wise transfer required identity verification, but now I can send five-figure amounts in minutes.
After you hit send on an international transfer, don't just hope for the best:
I've found most modern services are pretty good about sending updates, but I still like to check. I once had a $2,300 payment to a supplier in Thailand that seemed to vanish for three days before suddenly appearing in their account. Nerve-wracking when it's your cash in limbo!
Sending money globally isn't always smooth sailing. Here are real headaches I've encountered and how to deal with them:
Unexpected delays happen ALL THE TIME with international transfers. Usually it's because of compliance checks, especially for larger amounts or certain countries. My payment to Belarus got held up for a week while my bank demanded to know exactly what I was sending money for. These checks are mandatory, but you can minimize delays by clearly explaining the purpose upfront and responding quickly to any questions.
Hidden fees are another nightmare. I once sent $1,000 to a friend in Germany, but she only got €820 when it should've been around €870. Why? Her bank charged a "receiving fee" and an awful exchange rate. To prevent this, either choose the option to pay all fees yourself (called "OUR" in banking speak) or research the whole fee chain before you send.
Currency conversion traps are where most people get fleeced without realizing it. When sending money in a currency different from what the recipient will receive, someone's converting it - either your bank, a middleman, or the receiving bank. Each conversion usually includes a 1-4% markup. My worst experience was sending USD to Australia through my bank - the total cost ended up being almost 6% of the amount! Now I always use services that show me the exact amount that will arrive.
If your business regularly deals with international payments, you've got both bigger challenges and better opportunities to save:
Multi-currency accounts are absolute game-changers. Rather than converting money back and forth (and getting hit with fees each time), you can hold balances in different currencies. I consult for a Canadian company that sells primarily to US and European customers. They keep USD and EUR accounts to receive payments, then make vendor payments in those same currencies without ever converting. This saves them thousands every month.
With a free Virtual Account from SquareFi, incoming fiat transfers are automatically converted to cryptocurrency and stored in the client's custodial wallet.
Volume discounts are totally a thing, but you have to ask! Most banking institutions offer better rates once you hit certain transfer thresholds. A client of mine runs an import/export business and negotiated his bank's currency markup down from 2.8% to 0.9% just by showing them his annual transfer volume and threatening to switch providers. That's serious money back in his pocket.
Batch processing is another smart move. Some providers let businesses bundle multiple international transfers together, cutting per-transaction fees. My friend's fashion label makes monthly payments to six different suppliers in Asia. By batching these together through her transfer provider, she saves about $120 in fees each month.
API integrations are worth exploring if you're tech-savvy. Both traditional banks and fintech companies increasingly offer ways to automate international payment workflows directly from your accounting or order management system. A software company I work with integrated Wise's API with their payroll system to automate payments to their remote team across 12 countries, saving their finance person about 8 hours of work monthly.
When sending money internationally, there are some rules you just can't mess with:
These requirements help catch money launderers but affect processing times for larger transfers. I once had to provide three forms of ID and proof of income source for a $13,500 transfer to buy a used boat in Greece. Annoying but necessary.
The security side of international transfers keeps evolving, with most services now using:
A client of mine got a call from their bank when they tried to send a large payment to Nigeria for the first time. Frustrating in the moment but actually reassuring that someone was watching for potential fraud.
After years of trial and error (and too many fees), here's what actually works:
For personal transfers, Wise is usually your best bet. Their fees are clear, exchange rates are excellent, and the money typically arrives promptly. I've used them for everything from paying foreign contractors to sending cash to family overseas, and the difference compared to traditional bank wire services is dramatic - often 3-5% more money actually reaches its destination.
For businesses making regular international payments, a mixed approach works best:
My brother runs a small import business and cut his international payment costs by 42% simply by moving from his local bank to a combination of OFX (for large transfers) and Revolut (for smaller, regular payments).
Managing international transfers effectively comes down to understanding your options and picking the right tool for each job. By comparing the actual costs across different providers, both individuals and businesses can save significant money when sending funds outside their home country.
For businesses regularly sending or receiving international payments, getting strategic about these transfers should be a top priority. The savings from better currency exchange alone can significantly impact your bottom line, especially if you're moving money across borders frequently.
To really optimize your international transfers, you should:
By following these real-world tips, you'll keep more of your money where it belongs - in your account and the recipient's account, not in the pockets of banks and payment processors who count on you not doing your homework.
Find out how to launch international transfers for your business at SquareFi.com.
