Ways to Send or Transfer Money Internationally With Less Fees

People transfer money across borders for a wide range of purposes—purchasing or renting property, paying international tuition fees, sending gifts to family and friends, booking foreign travel, or buying products from overseas merchants. Many expats also move funds between countries to manage savings or maintain investment accounts held in their home nation.

However, navigating international transfers can be challenging. Global banking systems involve complex regulations, multiple fee structures, varying exchange rates, and several methods for sending money from one country to another. To make the process easier, it’s important to understand the main types of transfer options available and compare the most cost-effective ways to send money overseas.

Ways to Send Money Internationally

People use different methods to transfer money across borders depending on their needs, the urgency of delivery, and how the recipient will access the funds. Here are the most common options available today.

1. Third-Party Transfer Services

Many users prefer transferring money directly from one bank account to another. To do this affordably, you can link your bank account to a third-party international transfer service such as Wise, OFX, Remitly, or similar platforms.

These providers typically offer better exchange rates and lower fees than traditional banks because they route money through local accounts instead of relying on expensive wire networks. They also provide transparent pricing, making them a popular choice for routine international transfers.

2. Direct Bank-to-Bank Transfers

Banks offer international wire transfers, which are generally fast and secure but often come with high fees and unfavorable exchange rates. Some banks also provide lower-cost transfers to accounts within the same banking group or partner institutions abroad, though the processing time may be longer.

Bank-to-bank international transfers usually require detailed account information such as SWIFT codes or IBANs, ensuring the money reaches the correct destination.

3. Cash Transfers

For recipients who do not have bank accounts—common in many developing regions—cash transfers are a practical solution. Services like Western Union and MoneyGram allow senders to deposit cash at a physical location, after which the recipient can collect the funds in their local currency.

This method is convenient but carries potential risks. Even though ID verification and transaction numbers are required, fraud can still occur. Additionally, carrying large amounts of cash to a service location poses its own safety concerns.

4. Digital Wallet Transfers

Another modern option is sending money through digital wallets. These platforms allow users to store funds digitally and transfer them instantly to others who use the same service. Popular digital wallets include PayPal, Apple Pay, Google Pay, and Skrill.

Both parties must typically use the same app, and the recipient needs a way to withdraw or spend the funds—either through a connected bank account or a supported debit card.

5. Cryptocurrency Transfers

Cryptocurrency exchanges have made international transfers possible without traditional banks. In theory, crypto transactions can move funds across borders quickly.

However, this method comes with major drawbacks. Cryptocurrency prices are highly volatile, meaning the value of transferred funds can drop significantly within hours. Also, converting money to and from cryptocurrency involves exchange fees, which can be costly. For example, many exchanges charge around 1%–1.5% per transaction, and smaller transfers may incur high minimum fees.

6. Prepaid Debit Cards

Some senders choose to load funds onto a prepaid debit card that the recipient can use directly. While this can be convenient, it’s not always practical. Not all prepaid cards work internationally, and those that do may impose hefty foreign transaction fees, currency conversion charges, or other hidden costs.

Always review the terms and fee structure before using this option, as the total expenses can sometimes be higher than expected.

Common International Transfer Fees

International money transfers often involve multiple fees, and identifying them can be challenging. Banks and transfer providers do not always present these costs clearly, which means senders may end up paying more than they expect. Below are the main types of fees you may encounter when sending money abroad.

1. Exchange Rate Margin

Regardless of whether you transfer money through a bank, a third-party service, or a digital wallet, the provider will almost always include a markup on the exchange rate. This is where many of the “hidden fees” are buried.

For example, if the real market rate is 1 USD = 5 Brazilian reals, you might see a transfer rate of 1 USD = 4.70 reals instead. Sending $1,000 at this marked-up rate results in the recipient receiving 4,700 reals instead of 5,000 reals.
You may not see this fee listed anywhere, but the difference between the real exchange rate and the offered rate effectively becomes the provider’s profit.

2. Third-Party Transfer Fees

In addition to the exchange rate margin, many transfer services charge extra fees for processing the transfer. These fees can be:

• Flat charges (a fixed cost regardless of the amount)
• Percentage-based fees
• Variable fees determined by payment method or delivery speed

Some services advertise “no transfer fees,” but they usually compensate with higher exchange rate margins. Always compare both the exchange rate and the fee structure before choosing a provider.

If timing is not an issue, avoid paying extra for expedited transfers, which are usually optional but significantly more expensive.

3. Inbound and Outbound Bank Fees

Even if you choose a third-party service, your bank may still charge fees when money enters or leaves your account. These costs can appear as:

• Outbound transfer fees (when sending money)
• Inbound transfer fees (when receiving funds from abroad)

For instance, some banks charge a fee simply for receiving an international transfer, even if they played no role in converting or sending the money. These charges vary widely from bank to bank, and they can significantly impact the total cost of the transaction.

Fortunately, many high-quality transfer services work to reduce or avoid these bank fees by using local accounts or special partnerships.

Best Services to Send Money Internationally

After understanding how international transfers work and the fees involved, the next step is choosing the right service. Different platforms excel in different situations, depending on the transfer amount, recipient location, speed requirements, and available payment methods. Below are some of the most reliable and widely used services for sending money abroad.

1. PayPal

Best for: Small transfers (up to $500)

PayPal is ideal for quick, low-value international transfers when both sender and recipient already have PayPal accounts. Transfers are usually instant, and recipients can either withdraw funds to their bank accounts or spend directly using a PayPal debit card or eligible online merchants.
While PayPal’s fixed fees for overseas transfers are relatively low, its exchange rate markup is high. This makes PayPal practical for smaller amounts but less cost-effective for larger transfers.

2. Wise (formerly TransferWise)

Best for: Medium transfers ($500–$7,000), frequent travelers

Wise offers one of the most transparent and cost-efficient ways to send money internationally. Instead of converting every transfer individually, Wise balances incoming and outgoing transfers in opposite directions to reduce currency exchange costs.
Senders can set up an account using email or Google/Facebook login, and recipients don’t need a Wise account — just a functioning bank account. Wise accepts bank transfers, debit cards, and credit cards (with higher fees).
The platform clearly displays how much the recipient will receive before the transaction is confirmed. Transfer times can take up to five business days, but Wise remains highly popular due to low fees, transparency, and the option to hold money in over 50 currencies through its borderless account.

3. OFX

Best for: Large transfers between bank accounts

OFX is a strong option for high-value transfers, supported by global offices and a 24/7 customer service network. While it may charge a flat $15 transfer fee, the exchange rate markup decreases as the transfer amount increases, making large transfers significantly more affordable.
Registration requires strict identity verification, and recipients must have a bank account. OFX also provides a rate comparison tool for additional clarity — useful for senders looking for the best available deal.

4. WorldRemit

Best for: Sending money to developing countries

WorldRemit specializes in digital transfers directed toward underbanked or unbanked regions. With no physical branches and a mobile-first platform, WorldRemit keeps overhead low and passes savings on to users.
Senders need a bank account and must verify their identity, but recipients can receive funds in multiple ways: cash pickup, bank deposit, mobile wallet, or mobile airtime. With coverage in 130+ countries and support for 70 currencies, WorldRemit is well suited for remittances to developing nations.

5. Western Union

Best for: Cash transfers anywhere in the world

Western Union has operated for more than a century and remains one of the most accessible global money transfer networks. Users can send funds in cash, via card, or through bank accounts. Recipients can collect money as cash, through bank deposit, mobile wallet, or prepaid debit card.
The service operates in 200+ countries, making it ideal for regions with limited banking access. However, its fees vary widely depending on transfer speed, destination, and payment method, and are generally higher than newer digital competitors.

6. Xoom (by PayPal)

Best for: Fastest delivery times

Xoom focuses on speed, often delivering money to international destinations within minutes. Senders can fund transfers using a bank account, debit card, or credit card. Recipients can receive funds either through a bank deposit or cash pickup.
Xoom supports transfers to over 130 countries but only allows sending from a small number of developed countries. While extremely fast, it tends to be more expensive due to higher fees and exchange rate markups.

7. MoneyGram

Best for: Cash-based alternative to Xoom

MoneyGram offers broad international coverage and a large number of physical locations, making it useful for senders or recipients who prefer cash transactions. In the U.S., users can send up to $15,000 online, with different limits in other regions.
Transfers can be funded via bank account, card, or cash. Recipients can receive cash, bank deposits, or even home delivery in select locations.
Although widely accessible, MoneyGram is costlier than many digital services and has lower transfer limits compared to options like OFX or Western Union.

8. XE

Best for: International business transfers

XE provides secure, low-cost transfers for both individuals and businesses, supporting numerous currencies and offering clear, upfront delivery estimates. Users can create personal or business accounts quickly and send funds via Visa, Mastercard, ACH, EFT, or bank wire.
For companies managing global contractors or suppliers, XE also supports mass payments and offers a robust API for real-time exchange data. Its affordability and minimal administrative hassle make it a trusted choice for regular international business activity.

Conclusion: Transfer Money Internationally

Choosing the right international money transfer service depends on several factors — including transfer amount, destination country, speed requirements, and whether the sender or recipient has access to a bank account. Digital platforms like Wise, OFX, and XE offer competitive exchange rates and transparent pricing, making them excellent options for secure and cost-efficient transfers. Meanwhile, services such as Western Union, MoneyGram, and WorldRemit provide essential flexibility for cash pickups and transfers to underbanked regions.

By comparing fees, exchange rates, and delivery times before sending money, users can avoid unnecessary costs and ensure that their funds reach the intended recipient quickly and safely.