Remittances: Sending money to other countries

Starting a new life in the United States often means balancing opportunities here with responsibilities back home. If you regularly send money to family or friends in another country, you understand the importance of your remittances, which provide security, comfort, and essential support for your loved ones. But with so many options, fees, and potential risks, figuring out the safest and most cost-effective way to send money can be overwhelming.

Whether you’re sending funds for a child’s education, helping with health expenses, or supporting relatives’ daily living costs, it’s crucial to get your money where it needs to go securely, affordably, and quickly. This guide is designed to help you understand your choices, avoid common mistakes, and ensure your remittance reaches those who depend on you without unnecessary costs or problems.

Common ways to send money internationally

Sending money overseas has never been simpler or more convenient. Advances in technology and financial services make it easy to transfer funds across borders, whether you’re using a website, a mobile app, your local bank, or an authorized agent. You can choose to pay with your credit or debit card, link your bank account, or even visit a cash location in person. Many of these options offer quick service, user-friendly experiences, and reliable customer support to help guide you if you have questions.

Here are some of the most popular and trusted methods for sending money internationally:

Banks (International Wire Transfer)

Banks can send money from one bank account to another in a different country. This is called an international wire transfer. While secure, banks can be expensive, charging high fees sometimes as much as 13.40% of the amount sent.

Pros: Secure, traceable, suitable for large transfers.

Cons: High fees, slow (sometimes several days), complex paperwork.

Money Transfer Companies

Specialized companies make remittance easier, often cheaper, and faster than banks. Popular services include:

• Wise (formerly TransferWise): Offers very low fees and mid-market exchange rates. You can send from your bank account or Wise balance, and money usually arrives quickly. Wise is known for transparency and upfront fees.
• Western Union: Allows transfers online, through an app, or at agents’ locations. Funds can be picked up as cash or sent to a bank account. Fast for many countries and has a large global network.
• MoneyGram: Similar to Western Union, with many locations worldwide. Allows cash pick-up, bank deposit, or mobile wallet.
• Xoom (by PayPal): Quick transfers, often within minutes. Lets you send money to bank accounts or cash pick-up locations.
• OFX: Good for avoiding transfer fees, but may have lower sending limits.

Pros: Fast, convenient, lower fees, and many payout options.

Cons: Exchange rates can vary, and fees change depending on the method and destination.

Costs: fees and exchange rates

• Fees: Different services charge different fees. Traditional banks are typically the most expensive, sometimes costing around $45 or more per transfer. Money transfer companies and apps usually charge much less, often between 0.1% to 3% of the amount sent.
• Exchange Rates: When sending money abroad, the service converts your currency (US dollars) into the recipient’s local currency. Each provider sets its own exchange rate, and some companies may add hidden fees to the rate.

How to send money abroad

1. Choose a Service

• Compare fees, speed, and convenience.
• Decide if you want the money to go to a bank account, for cash pick-up, or to a mobile wallet.

2. Gather Information

To send money, you usually need:

• Recipient’s full name (as it appears on their ID or bank account)
• Recipient’s address and phone number
• Bank details: bank name, SWIFT code, account number, and sometimes IBAN or CLABE (for specific countries)
• Pick-up location (if they will collect cash)

3. Register and Start the Transfer

If sending online, create a free account with your chosen service. Follow the instructions, fill in the recipient’s details, select the amount, and choose your payment method. Some services let you save recipient information for future use.

4. Make the Payment

Pay for your transfer using your preferred method (bank account, card, or cash in person).

5. Receive Confirmation

You’ll get a receipt or confirmation email with a tracking number (for example, MTCN with Western Union). Share this with your recipient so they can track and collect their funds.

6. Recipient Picks Up Funds

Depending on your choice, your recipient will get the money in their bank account, at a pick-up location, or in their mobile wallet.

Common questions

Is it legal to send money overseas?

Yes, sending money to another country is perfectly legal in the United States. However, you should ensure you’re using reputable providers and report large transfers as required by law.

Do I need to pay taxes on money sent abroad?

A major change for anyone sending money overseas from the United States is the new federal remittance tax, passed in July 2025 and taking effect for transfers after December 31, 2025. When you transfer money overseas using cash, money orders, cashier’s checks, or similar physical options through banks, credit unions, or money transfer providers, a 1% fee will be applied to your transaction. 

How long does it take for the money to arrive?

Transfer times vary. Banks can take three to five days. Companies like Xoom or MoneyGram may deliver funds within minutes. Always ask about transfer time before sending.

Can I send money to any country?

Most services support dozens or hundreds of destinations, but some countries or regions may have restrictions or require special procedures.

Risks and how to avoid them

Sending money overseas brings peace of mind, but it’s important to know about risks. Being alert and making thoughtful choices will help make sure your hard-earned money safely reaches those who need it.

1. Scams

Scams come in many forms and are becoming more sophisticated. People may try to trick you through messages, phone calls, websites, or even in person. Common scams include:

• Unexpected requests: Someone contacts you asking for money to solve a problem, claim a prize, help a distant relative, or pay for a service. These could be fake or fraudulent.
• Impersonation: Scammers may pretend to be friends, family, government officials, or even employees of trusted money transfer services.
• Job or lottery scams: Offers for jobs, lottery wins, or prizes that ask you to send money to claim your reward.

How to avoid scams:

• Only send money to people you know and trust. If a request is unexpected, even if it uses familiar names, verify by contacting your family or friends directly.
• Be suspicious if someone asks for money by urgent phone calls, emails, or texts, especially from unknown contacts.
• Avoid transferring money to people you have never met in person.
• Never share your personal or financial information with unknown sources.
• Double-check the identity of anyone claiming to work for a money transfer company or bank; use official contact details, not phone numbers or emails given in suspicious messages.
• If an offer seems too good to be true, it probably is.

2. Hidden Costs

Some services advertise low fees but add high exchange rate margins or extra charges. These hidden costs mean your loved ones receive less money than expected.

How to avoid hidden costs:

• Always ask for the total amount you will be charged before confirming the transfer, including fees and exchange rates.
• Compare several providers. Cheaper isn’t always better if it means slow service or unreliable delivery.
• Check the exchange rate used: small differences make a big impact on larger remittances.
• Read the fine print for additional or surprise charges.
• Use money transfer platforms that provide up-front information and real-time tracking of your transfer.

3. Mistakes

Errors can happen during a transfer, such as entering wrong account numbers, misspelling names, selecting the wrong country, or sending the wrong amount. These mistakes can cause delays, lost money, or problems for the receiver.

How to avoid mistakes:

• Review all recipient details carefully before sending money, including names, account numbers, addresses, and phone numbers.
• Make sure names match government-issued IDs, especially for cash pick-ups.
• Double-check transfer amount, destination country, and service fees.
• Keep receipts and confirmation numbers from each transaction for tracking and problem resolution.
• If you have doubts, ask a bank or money transfer employee to help you review the details before sending.

4. Account Security

Fraudsters sometimes try to gain access to your account, either by hacking or tricking you into giving up your password.

How to protect your account:

• Use strong and unique passwords for money transfer services and online banking.
• Enable additional security measures, such as two-factor authentication (receiving a code on your phone before logging in).
• Monitor your account and transactions regularly.
• Avoid public Wi-Fi when sending money online.
• Log out after completing your transaction.

5. Using Secure Services

Not all money transfer methods are equally safe. Using informal or unlicensed services can put your money at risk and leave you with little protection if something goes wrong.

How to choose secure services:

• Use established, regulated providers that are licensed in the US.
• Look for encryption, payment protection, and guarantees on their websites or apps.
• Keep a record of your transactions and store receipts securely.
• Avoid cash-only transfers through unknown individuals or unverified locations.

6. What To Do If You Suspect Fraud

If you believe you have been targeted or affected by a scam, act quickly:

• Contact your transfer provider immediately to try to stop the transaction.
• Report the incident to the authorities (such as the Federal Trade Commission or local police).
• Notify your family so they can be alert for similar scams.

This article is for informational purposes only and does not constitute legal advice. For personalized assistance, please consult with an immigration attorney at Stump & Associates.

Looking for Immigration Help?

Stump & Associates is Oklahoma City’s most respected immigration law firm. With more than 30 years of experience, we know how to handle cases just like yours.

Learn More