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Whether you want to send cash to help people in Ukraine, buy a property overseas or wire money to family abroad, you need to do some research before hitting send.
Many people will log-on to their local bank, while others might use Western Union, Wise, XE or even PayPal in some cases, because they are the brands that they are most familiar with.
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As with any financial decision, the right one is based on matching your individual needs with the services and fees of the provider.
How to Compare International Money Transfers
Many banks and international money transfer companies will advertise their ease and convenience, but don’t forget such service comes at a cost. These providers often make their money by taking a cut for the transfer service, so in addition to any fees leveraged, it’s worth paying attention to the exchange rate, especially if you’re sending large amounts of money at a time. An uncompetitive exchange rate could really cost you.
When it comes to any foreign currency transaction, the big question is: “After all the fees, how many euros/US dollars/baht etc will I get for X Australian dollars?” This is the figure you need to use to compare deals. Some providers, such as XE, don’t levy fees, but nothing comes from free. Instead, the company adds a margin to the exchange rate so you need to make sure you’re happy with that rate.
How Much Money are you Sending?
Some money transfer services state a minimum transaction amount. So, if you only want to send $50 to a mate abroad, you’ll have less choice of providers than if you wanted to buy a house in another country.
Is Your Money Safe?
Thankfully, these days it is relatively easy to send money abroad, but as the Federal Government points out via its Moneysmart website, you need to be extra careful who you’re sending money to and ensure you have the correct payment details and documentation. If you accidentally send money to a scammer, it’s almost impossible to get your money back.
Visit the Federal Government’s Scamwatch website for more information.
If you’re sending money via an International Money Transfer provider (IMT), it is recommended you check the provider is regulated by the Australian Securities and Investments Commission (ASIC) and has an Australian Financial Services Licence number (AFSL), which can be found on their website.
In addition, check if they are a member of the Australian Financial Complaints Authority (AFCA)—a body you can turn to if something goes wrong.
A reputable IMT will also be transparent about their fees rather than baking them into the overall transaction and currency conversion process. Scams are getting increasingly sophisticated so if you’re ever unsure that you’re talking to the right person then hang up and call your bank or the company back.
The Need for Speed
How quickly you need the money to arrive will influence the service you choose. Same day or next day services usually cost more than those that deliver the money in up to five business days. Some services can deliver money overseas in minutes, but check fees and conversion rates.
If you opt to post an international money order overseas this could take more time than an online transfer. It can sometimes be more expensive too.
Ways to Send Money Abroad
Your Bank Account
Sending money abroad using your Australian bank account is easy and convenient, as well as safe. You’ll normally be able to do the transaction online and it will commonly be referred to as a SWIFT transfer.
Research by the Australian Competition and Consumer Commission (ACCC) found that in many situations the big four banks were among the most expensive. They also found that in some circumstances Australians could save up to $500 on a $US7,000 transfer if they shopped around for a cheaper service.
However, there are always exceptions to the rule and it does pay to investigate whether your bank offers a compelling overseas transfer product suited to your needs. Look for a flat fee, no minimum or maximum amounts and real-time tracking for peace of mind.
You may also opt for a global bank, such as Citi, that has branches internationally, including Australia.
Money Order
An international money order involves your bank issuing a cheque to send overseas that the recipient can then pick up in person and deposit at their end.
Certain Australia Post stores allow you to send money internationally at participating outlets. You can head to the post office, and as long as you have valid ID, you can pay and send the money on the spot.
International Bank Transfer
Money transfer companies are a popular choice for Australians wanting to send money overseas. They are usually competitively priced and are able to transfer the money into the recipient’s bank account or to their local branch where they can pick it up in person.
You can either arrange an international bank transfer in person, paying with EFTPOS or cash, or you can complete it online from the comfort of your own home.
Common money transfer companies in Australia include Wise (formerly TransferWise), which enables users to send and receive money from a range of currencies including pounds, USD and Euro; and CurrencyFair, which allows people to trade currencies between other users in Australia, Ireland and the UK.
How much you will pay depends on the country you are in, the currency you are sending and the currency it will arrive in. In Australia, for example, Wise lists its fees at 0.7% per transfer under $10,000 and 0.5% per transfer for those over $10,000 AUD ($2 AUD minimum fee).
Services such as MoneyGram and Western Union have their advantages—but they’re not cheap.
You can use these services if you need to make a payment quickly or if the recipient doesn’t have a bank account: they can pick up the cash quickly (in minutes) in a shop in an emergency.
Both have a huge network of physical premises, including in relatively remote locations. They can both be a good option, for example, if your child is on a gap year and is robbed of all their gear, as you can send them cash fast.
However, fees can be high, exchange rates uncompetitive, and maximum limits low.
PayPal
PayPal is an easy option if both you and the recipient have a PayPal account, allowing consumers to transfer money between more than 200 different countries.
But PayPal is an expensive way to send money abroad as the foreign conversion fees tend to be among the worst out there.
Featured Partners
1
Xe Money Transfer
International Transfers
50+ currencies available to transfer to 130+ countries
Fast and Easy
Initiate transfers 24 hours a day, 7 days a week
Fees
Get a live rate for your chosen currency.
2
Wise
Monthly fees
$0
On Popular Routes
Initiate same day or instant money transfers
Payment options
Direct debit, wire transfer, debit card, credit card & Apple Pay
Frequently Asked Questions (FAQs)
How can I send money overseas online?
The days of picking up a money order in person from your bank and posting it overseas are behind us. If you want to send money overseas online from the comfort of your own home, then there are a range of online money transfer companies that you can call on. Check their fees, currency exchange rate, transfer limit and transfer time to find the one that is right for you. You can also use a bank wire or SWIFT transfer, via your bank’s mobile app (or even in person at the branch) but these can be more expensive and may take a number of business days to go through.
How can I send money overseas via PayPal?
If the person you wish to send money to internationally has a PayPal account, then this maybe a convenient option. If they don’t, you will be redirected to PayPal’s money transfer service, Xoom. However, sending money internationally via your PayPal account is never the cheapest option as PayPal offer a “retail exchange rate,” which is equivalent to the standard of currency exchange rate you find at the airport—in other words, not the best by far. If you’re aware of how PayPal’s exchange rates compare and you are still happy to proceed, then it may be a good option. PayPal offers a guide for Australians sending money overseas on their site.
How can I send money overseas from Australia with no fees?
There are a handful of money transfer companies that offer “fee-free” services without commission. However, there are often qualifiers to the free service, such as minimum amounts of transfer, the exclusion of cash or cheques or exchange rates that need to be requested rather than provided. Some will also take a small margin for making the transfer. So essentially there is no such thing as a free money transfer: if a company is not charging you an upfront fee then they’re making it up along the line with other costs such as higher exchange rates. This need not be a problem if it works out cheaper for you overall.
How long does an international money transfer take?
It depends on the service you are using, the currency you are exchanging and sometimes even the recipient’s bank. Some international transfers can take mere minutes, while others can take days. Most companies will disclose average transfer times up-front, so look for this detail if speed is important to you.
Which Australian bank is best for international transfers?
It depends on the amount of money you are sending. For example, ANZ charges a mark-up fee as well as a standard $9 administrative fee, but this fee is waived for high-value transfers. NAB waives transfer fees, while St George Bank charges $10 per transaction. Many Australians prefer to use dedicated money transfer companies—such as Wise, XE and OFX—which make their money on foreign currency conversion rates rather than fees. Others prefer to stick with their bank as it’s what they’re comfortable with. The choice is yours.
Can I send money to a friend overseas?
These days it is easy to send money overseas, with many avenues available for consumer to choose from, but the most common methods by far are bank transfers and transfers via dedicated money transfer companies. If your friend cannot access his or her account, some large money transfer companies will allow you to wire the cash to a dedicated physical outlet.
How much money can I send overseas from Australia?
While there is no limit on how much money you can send internationally, any amount over $10,000 will attract the attention of AUSTRAC. Why? To prevent money laundering or other illegal activities.
