Sending Money Abroad from the United States: A Complete Guide for Immigrants

The Cost of Staying Connected

For many of us in the United States, sending money home is more than a financial transaction. It can be rent for a parent, school fees for a younger sibling, or groceries for a household that depends on what we earn here.

Money sent by immigrants to family in other countries is often called a remittance. For many families, these transfers are an important source of support.

The cost of sending money is not always easy to see. There is the fee you are shown, but there can also be a markup built into the exchange rate. Speed, safety, and how the recipient receives the money matter too.

This guide explains how international money transfers work, where the costs come from, and how to compare offers before you send. It does not recommend any particular company, because the lowest-cost option can change by country, amount, payment method, and day.

What Is an International Money Transfer?

An international money transfer is the process of moving money from a bank account or payment service in one country to a recipient in another country.

The process seems simple from the outside: you send money here, and someone receives money there. In between, there may be more than one institution, a currency conversion, and fees that reduce the amount that arrives.

Understanding what happens in the middle helps you compare options.

How International Money Transfers Work

Step 1: You initiate the transfer

You go to a bank, use a money transfer app, visit an agent location, or use an online service. You provide the recipient’s information and the amount you want to send.

Step 2: The sending institution processes the transfer

The institution you are using — whether a bank, a money transfer operator, or a digital service — takes your money and initiates the transfer process.

Step 3: Currency conversion occurs

If you send U.S. dollars and the recipient receives a different currency, a conversion happens somewhere in the process.

The exchange rate used determines how much of the other currency your recipient receives. A provider’s rate may include a markup, which is an added cost to you. We explain this below.

Step 4: The transfer moves through the banking system

Depending on the method, a transfer may pass through more than one bank or company before it arrives. In some cases, other banks involved in the transfer, or the recipient’s bank, may charge fees that reduce the amount received.

Before sending, ask the provider whether the amount it shows is the amount the recipient will actually receive.

Step 5: The recipient receives the money

At the destination, the recipient receives the money through the delivery method you chose, such as a bank deposit, mobile money, or cash pickup.

Where Transfer Costs Come From

Understanding where costs come from helps you compare offers.

Cost One: Transfer fees

The most visible cost is the transfer fee charged by the service you use. It may be a flat amount, a percentage, or both. Fees can vary by provider, destination, amount, how you pay, and how the recipient receives the money. Fees also change over time.

Cost Two: Exchange rate markup

Providers set the exchange rate they use for your transfer. That rate may be less favorable than a current exchange rate you can look up from an independent source, such as a financial news website. The difference is often called an exchange rate markup. It is a cost to you even if the provider advertises “no fee.” Markups can vary by provider and change over time, so check each time you send.

Cost Three: Other fees

Some transfers can have other fees, such as fees charged by the recipient’s bank. These can be hard to know in advance. Ask the provider whether the amount it shows is the amount the recipient will actually receive.

The Total Cost: Compare the Amount That Arrives

A useful way to compare offers is to look at the total cost: the visible fee plus any exchange rate markup.

One way to estimate it:

1. Look up a current exchange rate for your currency pair from an independent source.
2. Multiply your transfer amount by that rate. This is roughly what the recipient would get with no markup and no fee.
3. Note how much the provider says the recipient will actually receive.
4. The difference between steps 2 and 3, converted back to dollars, is roughly the exchange rate cost. Add any visible fee to estimate the total cost.

Exchange rates move during the day, so this is an estimate, not an exact figure.

Hypothetical example (the rates and fees below are made up to show the math; they are not real or current rates):

You send $500. Suppose the current exchange rate you looked up is 17.50 units of the other currency per dollar. With no markup, the recipient would get 8,750 units.

A provider offers 16.80 units per dollar plus a $5 fee. The recipient gets 8,400 units, which is 350 units less. At 17.50 units per dollar, 350 units is about $20. Adding the $5 fee, the total cost is about $25.

Comparing the amount the recipient receives for the same amount sent is often the simplest way to compare offers. Because providers must generally disclose that amount before you pay (see “Safety and Your Rights” below), you can compare it across providers.

How to Compare Transfer Options

Before each transfer, compare offers from more than one provider using the same amount and destination. For each offer, check:

• Transfer fee: What will you pay to send?
• Exchange rate: How does the offered rate compare with a current rate from an independent source?
• Amount received: How much will the recipient actually get?
• Speed: When will the money be available?
• Payment method: Does the price change if you pay by bank account, debit card, or credit card?
• Recipient method: Can the recipient get the money the way they need it, such as a bank deposit, mobile money, or cash pickup? Are there fees on the receiving side?
• Protections and support: Is the provider licensed or registered? How do you cancel or report a problem?

No single type of provider is always the lowest-cost or the fastest. The best choice for you can change depending on the destination, amount, payment method, and delivery method. The World Bank’s Remittance Prices Worldwide database shows average costs for sending relatively small amounts between many pairs of countries, which can give you a general sense of costs, but it is not a live quote.

The Main Transfer Methods: An Overview

Bank and credit union transfers

Many banks and credit unions can send international transfers to a recipient’s bank account. Fees, exchange rates, and speed vary. Ask your bank or credit union for the full cost and the amount the recipient will receive.

Money transfer companies (online and app-based)

Some companies focus on international transfers that you set up online or through an app. Delivery can be to a bank account, mobile wallet, or cash pickup, depending on the company and country. Costs and speed vary by company, country, and amount.

Money transfer companies with agent locations

Some companies let you send money in person at agent locations, such as stores, and offer cash pickup in many countries. This can matter when a recipient does not have a bank account. Costs vary, so compare the total cost, including the exchange rate.

Mobile money and digital wallets

In some countries, people commonly receive money in a mobile money account. Some transfer services can deliver to these accounts. Availability, cost, and speed depend on the country and service.

Cryptocurrency

Some people use cryptocurrency to move value across borders. It requires both sender and recipient to know how to use crypto wallets, conversion costs can apply at both ends, and prices can change quickly. Ask whether the protections described below apply before you use it. According to the FTC, no government agency will demand payment in cryptocurrency.

Key Terms You Will Encounter

Remittance: Money sent to someone in another country, often by an immigrant to family.

Exchange rate markup: The difference between a current exchange rate from an independent source and the less favorable rate a provider offers. It is part of the cost of the transfer.

Transfer fee: The visible fee charged for sending the transfer.

Delivery method: How the recipient receives the money, such as a bank deposit, cash pickup, or mobile money.

Transfer limit: The maximum amount that can be sent in a single transfer or within a time period.

Safety and Your Rights

Use legitimate, regulated services.

Registration and licensing. Money services businesses, which include many money transfer companies, generally must register with the U.S. Department of the Treasury through the Financial Crimes Enforcement Network (FinCEN). FinCEN offers a public search of registered money services businesses. States can have their own requirements too.

Federal remittance protections. For many international transfers sent from the United States, the CFPB’s remittance rule generally requires covered providers to:

• tell you the fees, the exchange rate (if applicable), and the amount the recipient will receive before you pay
• give you a receipt with that information and when the money will be available
• let you cancel, at no charge, within 30 minutes after you pay, unless the money has already been picked up or deposited
• investigate if you report certain problems, such as money not arriving, within 180 days of the date the money was supposed to be available

These rules do not apply to every provider or every transfer. For example, according to the CFPB, a company that provides 500 or fewer remittance transfers in both the previous and current calendar year is not covered. Ask the provider how it handles cancellations and errors.

Informal arrangements. Be cautious about people who offer to carry cash or send money through unofficial channels. You may not have the protections described above if something goes wrong.

Scams. Be careful if anyone pressures you to send money quickly. According to the FTC, no government agency will demand that you wire money or pay with gift cards, cryptocurrency, or a payment app.

Understanding the System Helps You Compare

The costs of sending money abroad are not always obvious. Comparing the total cost and the amount the recipient receives, instead of the advertised fee alone, can help you choose an option that fits your needs.

Now you understand how transfers work, where the costs come from, the difference between visible fees and exchange rate costs, and the main ways to send money.

If you send money regularly, it can help to include transfer costs in your monthly plan. Our guide on creating your first budget shows how to include remittances as a regular expense.

Sources and official resources

• CFPB: What is a remittance transfer and what are my rights?
• CFPB: Problems sending money to another country?
• FinCEN: Money services business registration
• World Bank: Remittance Prices Worldwide
• FTC: How to avoid a government impersonation scam

Financial rules and limits can change. This guide was reviewed using official sources in September 2026.

This guide is for educational purposes and is not individualized financial advice.