When you need to wire money abroad, your first thought might be to visit your bank. But it pays to look around. Nowadays, there are more affordable and convenient options.
Banks still make the lion’s share of U.S.-based personal transfers, wiring nearly $140 billion in person-to-person payments last year, according to analyst firm Javelin. Non-bank providers, including Western Union and MoneyGram, sent $30.8 billion. But the money transfer landscape is changing, especially as more specialized players, such as Xoom and TransferWise, enter the market.
The average cost for an international wire transfer from a U.S. bank is $40 — and there’s typically a fee on the receiving end, too. Non-bank providers offer similar services at lower costs. The amount you pay will depend on the destination, payment method, delivery option and the amount you send. Generally, the faster the transfer method you choose, the higher the cost.
Along with lower costs, many non-bank providers have longer hours, so you can send or receive money with more flexibility. Some even deliver money as cash at locations abroad and as balances on mobile phones.
“Sending money through different avenues will drive a competitive pressure on pricing and open up more capabilities for consumers,” explains Michael Moeser, director of retail payments at Javelin Strategy.
Looking for the best way to wire money internationally? Check out one of these providers.
>>MORE: Want to see transfers in the U.S.? See our post Best Ways to Send Money to Individuals.
Western Union
Western Union is the world’s biggest money transmitter, and it has two big advantages over other non-bank providers: its delivery network and its transfer options. You can wire money in person, by telephone, on its website, or through its mobile app, and pay using a bank account, debit card, credit card or cash. For delivery, you can have money wired into a bank account or picked up as cash at more than 500,000 agent locations across rural and urban areas in more than 200 countries. Customers can use Western Union FX for larger online transfers, which offers email alerts for currency rate changes.
MoneyGram
Like Western Union, MoneyGram has a large physical network, with 350,000 locations in more than 200 countries. You can send cash to an agent location, or perform online and mobile transfers with a U.S. checking account, credit card or debit card (Visa or Mastercard only). Like Western Union, sending cash to an agent location can take minutes, depending on local regulations and procedures.
MoneyGram offers similar pricing and services to Western Union, but it has some limitations. It caps online transfers using a credit or debit card at $2,999 per 30 days, although you can wire more by going to an agent location. Online transfers from a bank account, which cost less, are capped at $400 per transfer. You can’t send money by telephone.
Xoom
Xoom makes it easy for online and mobile users to send money to 41 countries, with an emphasis on developing countries. You can have money sent to a bank account or a cash pickup location, and in about half the countries it serves, you can have it added to a mobile phone balance.
Paying with a credit or debit card is the fastest way to send money through Xoom, but it costs a bit more than using a bank account. In general, Xoom’s part of the transfer process happens within a minute, but a full transfer can take up to four business days.
TransferWise
TransferWise, a United Kingdom-based money transmitter, provides a low-cost and easy way to send money abroad with its website and mobile app. It offers streamlined, internet-based transfers of up to $1 million in 38 currencies, with the cost upfront.
TransferWise users can create profiles using Facebook or Google accounts, making sign-up and transfers easy. American users can only pay by bank account, but that might change soon. The service plans to start accepting debit cards in a few weeks, according to Joe Cross, general manager of TransferWise in the U.S. Either way, TransferWise moves money exclusively between bank accounts, so delivery depends on local banking hours.
USForex
USForex, a currency brokerage owned by the global company OzForex Group, specializes in large transfers in 50 currencies. Transfers take at least one business day, and there’s no upfront fee if you send more than $5,000. You can transfer money via phone or online, but only between bank accounts.
On its website, USForex advertises better-than-average consumer exchange rates. Book rates anytime online or by calling a USForex dealer during business hours. For more control over the exchange rate you get, set up email alerts for specific currencies. You can also target rates, meaning that a transfer only sends if it reaches the rate you specify.
Wiring money isn’t just a bank service. Using one of these providers can be a fast, cheap and convenient way to get your funds where they need to go.
Spencer Tierney is a staff writer at NerdWallet, a personal finance website. Email: spencer@nerdwallet.com. Twitter: @SpencerNerd.
Methodology
To determine the best money transfer services, we compared 23 providers by fees, delivery speeds, security, number of supported currencies and number of physical locations worldwide. Priority went to the ones with a combination of the lowest fees, fastest delivery, security measures and most supported currencies. We excluded services that don’t work in the U.S.
Money transfer providers surveyed: Currencies Direct, CurrencyTransfer, MoneyCorp, MoneyGram, PayPal, Payza, Remitly, Ria, Sharemoney, TorFX, Transfast, TransferWise, Travelex, USForex, Venstar Xchange, Viamericas, Wal-Mart, Wells Fargo (ExpressSend), Western Union, World First, WorldRemit, XE and Xoom.
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