What happens when you send money across borders

An international bank transfer moves money from your account in one country to a recipient's account in another. Your bank does not physically move cash — instead, it sends payment instructions through a network of correspondent banks, each taking a small cut and adding processing time. The money leaves your account in one currency and arrives in another, with the exchange rate and fees determined by which route your bank chooses.

The speed, cost, and final amount the recipient gets depend on three things: the method you use (wire transfer, SWIFT payment, or international ACH), the banks involved on both ends, and whether you or the recipient pays the fees. A transfer that costs $45 and takes three days through one bank might cost $15 and take five days through another, or cost nothing but take two weeks through a third-party service.

Key Takeaways

  • Wire transfers and SWIFT payments move money in one to three business days but charge $15 to $50 per transfer, with your bank choosing the exchange rate.
  • International ACH transfers cost less (often $0 to $15) but take five to ten business days and only work between the United States and a few other countries.
  • Third-party money transfer services like Wise or OFX often charge lower fees and offer better exchange rates than banks, but require you to set up an account with them first.
  • You need the recipient's full name, account number, bank name, and SWIFT code or routing number — getting these details wrong can delay or lose the transfer.
  • The recipient's bank may charge an additional fee to receive the money, which can be deducted from the amount they get unless you pay it upfront.

Wire transfers: fast but expensive

A wire transfer is the fastest method most banks offer. You give your bank the recipient's name, account number, and bank details, and the money typically arrives within one to three business days. Your bank sends the payment through the SWIFT network (Society for Worldwide Interbank Financial Telecommunication), which connects banks worldwide.

Wire transfers cost $15 to $50 depending on your bank and whether the transfer stays within one country's banking system or crosses multiple borders. Your bank also sets the exchange rate, which is usually 1 to 3 percent higher than the mid-market rate — the difference is how the bank makes money on the transaction. If you send $1,000 USD to Canada, your bank might charge $35 and explore an exchange rate that gives you 30 cents less per dollar than the real rate, meaning the recipient gets noticeably less than the math suggests.

The recipient's bank may also charge a fee to receive the wire, typically $10 to $25. This fee is usually deducted from the amount the recipient gets unless you arrange to pay it upfront (called "OUR" in banking terms, meaning you cover all costs). Ask the recipient's bank what they charge before you send, so you know what to expect.

SWIFT payments and correspondent banking

SWIFT is the messaging system banks use to send wire transfers, but the actual movement of money often involves multiple banks in between. If you send money from a US bank to a small bank in another country, your bank may not have a direct relationship with that bank. Instead, your payment goes through one or more correspondent banks — intermediaries that both banks trust — each taking a fee and adding a day or two to the timeline.

A transfer that should take two days can stretch to five or six if it passes through three correspondent banks. Each one charges $10 to $20 for handling the payment, and these fees are often deducted from the amount the recipient gets. You may not know how many correspondent banks are involved until after you send the money, which is why the recipient sometimes gets significantly less than you intended to send.

To reduce correspondent bank fees, ask your bank whether the recipient's bank is a direct correspondent. If it is, the transfer will be faster and cheaper. You can also ask the recipient to provide their bank's SWIFT code and confirm that your bank has a direct relationship with it before you initiate the transfer.

International ACH: slower but cheaper

ACH stands for Automated Clearing House, and international ACH transfers are only available between the United States and a handful of countries: Canada, Mexico, the United Kingdom, and a few others. If you are sending to one of these countries, ACH is usually the cheapest option.

International ACH transfers cost $0 to $15 and take five to ten business days. Your bank does not set the exchange rate — it uses the rate published by the Federal Reserve or another central bank, which is closer to the real market rate than what a bank would charge. This means you lose less money to the exchange rate markup.

The trade-off is time. ACH batches payments and processes them on a schedule, so a transfer initiated on a Friday may not leave your account until Monday, then take another five to seven business days to arrive. If the recipient needs the money quickly, ACH is not the right choice. Also, not all banks offer international ACH, so check with yours first.

Third-party money transfer services

Companies like Wise, OFX, Remitly, and MoneyGram offer international transfers outside the traditional banking system. They typically charge lower fees ($2 to $15) and use mid-market exchange rates or rates very close to it, so you lose less money overall. For transfers under $10,000, a third-party service often costs half what a bank charges.

The process is straightforward: you create an account, enter the recipient's details, and fund the transfer from your bank account or debit card. The money usually arrives in one to three business days. Some services offer same-day delivery for an extra fee.

The main drawback is that you are trusting a non-bank company with your money, at least temporarily. These services are regulated — Wise is licensed as a money transmitter in most US states, for example — but they are not banks and do not have FDIC insurance. Read the terms to understand how your money is held while the transfer is processing. Also, some services do not work in all countries, so check whether the recipient's country is supported before you sign up.

Information you need before you send

Sending an international transfer requires specific details about the recipient and their bank. If any detail is wrong, the money can be delayed, returned to you, or in rare cases, lost.

You need: the recipient's full legal name (exactly as it appears on their account), their account number, the name of their bank, and either the bank's SWIFT code or routing number (depending on the country). For some countries, you also need the recipient's address or a reference number like an IBAN (International Bank Account Number), which is used in Europe and many other regions.

Ask the recipient to provide these details in writing or take a screenshot of their bank statement, which usually shows the account number and bank name. SWIFT codes are publicly searchable online, but confirm it with the recipient's bank to be sure. A wrong SWIFT code can send your money to the wrong bank, and recovering it takes weeks.

Exchange rates and how banks profit

When you send money in one currency and the recipient receives it in another, a bank or service must convert it. The real exchange rate — called the mid-market rate — changes constantly and is set by currency markets. Your bank or transfer service does not use that rate. Instead, they explore a markup, which is how they make money on the transaction.

A bank's markup is typically 1 to 3 percent, sometimes higher. If the mid-market rate is 1.10 USD per CAD, your bank might offer 1.07, pocketing the difference. On a $5,000 transfer, that difference adds up to $150 or more. Third-party services usually charge 0.5 to 1.5 percent, which is why they are often cheaper overall even if their stated fee is higher.

Before you send, ask your bank or service what exchange rate they will use and what the mid-market rate is right now. You can check the mid-market rate on XE.com or OANDA.com. This tells you exactly how much the markup costs.

Timing and when the money arrives

The time it takes for money to arrive depends on the method and the banks involved. A wire transfer typically takes one to three business days. International ACH takes five to ten. Third-party services usually take one to three business days, though some offer same-day or next-day options for an extra fee.

Weekends and holidays add time — a transfer initiated on Friday may not process until Monday, and holidays in either country can add another day or two. If you are sending to a country in a different time zone, the transfer may not even begin processing until the next business day in that country.

Always initiate a transfer well before you need the money to arrive. If the recipient is counting on the money for a specific date, send it at least a week early to account for delays. Once you send the money, you cannot stop it if it is already in the banking system, so double-check all details before you confirm.

Frequently Asked Questions

What is the cheapest way to send money internationally?

Third-party services like Wise or OFX are usually cheapest for amounts under $10,000, with fees of $2 to $15 and better exchange rates than banks. For transfers between the US and Canada, Mexico, or the UK, international ACH is also very cheap. Wire transfers through banks are the most expensive option.

Can I cancel an international transfer after I send it?

Once the money leaves your bank's system and enters the SWIFT network, you cannot cancel it. If you catch the error before processing begins — usually within a few hours — your bank may be able to stop it. After that, you would have to contact the recipient's bank and ask them to return the money, which can take weeks.

Why did the recipient get less money than I sent?

The recipient's bank likely charged a receiving fee, or your bank applied a markup to the exchange rate, or both. Correspondent banks in between may have also deducted fees. Ask your bank for a breakdown of all charges and the exchange rate used. For future transfers, use a third-party service or ask your bank about direct correspondent relationships to reduce fees.

Do I need to report international transfers to the government?

In the United States, banks must report wire transfers over $10,000 to the Financial Crimes Enforcement Network (FinCEN) as part of anti-money-laundering rules. This is automatic and does not mean you have done anything wrong. If you are sending money regularly, consult a tax professional about reporting requirements, which vary by situation and country.

What if the recipient's bank rejects the transfer?

A bank may reject a transfer if the account number is wrong, the account is closed, or the recipient's bank suspects fraud. The money is usually returned to your account within five to ten business days, though it can take longer. Contact your bank to find out why it was rejected, then work with the recipient to get the correct information before trying again.