Money transfer fees continue to hit the roof.
And worse, financial corporations charge hidden fees, inflating the cost of sending money internationally.
So whether you’re providing link building services, an affiliate marketer or even a freelancer depending on every single dollar- ultimately, you’re running a business and the lower your expenses, the better.
Thankfully, there are ways you can escape the hidden fees if you know the best way to send money overseas.
I’ll explore different services for international money transfers, how they work, and when to use each.
Let’s get to it.
What’s the Best Way to Transfer Money Internationally?
| Platform | Transfer fee (% of the amount sent) | Processing time | Does the recipient need an account? |
|---|---|---|---|
| Wise (formerly Transferwise) | 0.25% to 1%, or more depending on the currency | Minutes for card payments 1 to 5 days for bank transfers | No |
| Payoneer | 0.5% to 3% | Instant for Payoneer to Payoneer transfers 2 to 5 days for bank transfers | No |
| Remitly | 0.5% to 2% | Instant for economy transfer options | No |
| World Remit | $2.99 to $5.99 | 3 mins for cash pickup 2 to 3 business days for bank transfers | No |
| Xoom | fixed fee of $4.99 2.9% to 3.3% for debit card payments | Minutes for card payments and Paypal balance 3 to 5 days for bank transfers | No |
| Paypal | A fixed fee of $0.30 per transaction 2.1% to 4.4% of the amount sent | Instant from one Paypal account to another. 3 to 5 days when sent through the bank | |
| Paysend | Paysend 0.5% to 2% of the international money transfer value | Instant for card payment Bank transfer takes 3 to 5 days. |
1. Wise (Formerly Transferwise)
Wise has the best exchange rates and low transaction fees, yet they don’t charge markup fees like other payment providers. Plus, they have decent customer support compared to other money transfer services.
How it works
You can send money to someone without a Wise account. You only need their bank account number and full name. You can also hold different currencies using the platform’s international bank accounts.
You’ll need an email address to register a Wise account. You may also verify your identity using your national ID and a photo of your face.
To send money on Wise:
- Log in to your account
- Click the Send button
- Enter the amount of money and select the recipient’s currency
- Enter the recipient’s name, email address, bank name, and bank account number (and tax ID for some countries)
- Review the information and select Confirm.
- Finally, choose your payment method and click Send.
Processing Time
Wise payments arrive within minutes when you pay using a debit or credit card. But bank transfers take 3 to 5 business days on average.
Rates
0.25% to 1% of the amount sent. But the fee could be as high as 7%, depending on the currency.
Restrictions
Different currencies have different transfer limits. For example, you can send up to 5 million GBP per transfer, but the maximum transfer amount for AUD is 1.5mllion.
Payment Options
Card, wire transfer, ACH, or Wise balance
2. Payoneer
Payoneer allows medium-sized businesses and individuals to send and receive money without a merchant account. It’s best for mass payouts, sending money via Amazon, and marketplaces like Upwork. But they charge $29.15 if you don’t use your account for 12 months. And they have some hidden fees.
How it works
Like Wise, the recipient doesn’t need a Payoneer account, only a bank account.
You need your ID card, email address, phone number (used for verification purposes), and bank account (with the same ID Card Name) to create a Payoneer account.
To transfer money to a recipient:
- Log into your Payoneer account,
- Click pay and select make payment.
- Next, select To a recipient’s bank account
- Select Add bank details and enter the recipient’s contact and bank account information
- Review the details and pay
Processing Time
After receiving a confirmation email, it takes 2 to 5 business days to reach the recipient’s bank account. But expect a day or two days delay during holidays.
Rates
Sending money from one Payoneer account to another is free. But you’ll pay 0.5% of the transfer amount if you send it in a different currency. In addition, expect 3% charges for credit card payments and 1% for e-check payments.
If you send the money via Payoneer balance, the recipient will pay $1.50 to transfer funds from their local bank account.
Restrictions
Payoneer’s verification process is hectic. They can hold your funds or close your account if they suspect fraud, yet their system can sometimes be inaccurate.
Payment Options
Payoneer balance, ACH direct debit, credit card, and bank transfer.