The Complete Guide to Sending and Receiving Money Overseas

If you're supporting family overseas, getting paid from abroad, or paying for travel, you may have sent or received money internationally at one point.

While cross-border money movement is routine, it can still be confusing. Fees, exchange rates, transfer times, and banking requirements vary depending on how you move your money and which provider you use.

This guide explains how international money transfers work, the different ways to receive money overseas, and what to watch out for so you don't pay more than you need to.

How international money transfers work

When sending money overseas, the funds usually don't travel directly from one bank account to another. Instead, the transfer is processed through a network of banks or payment providers that handle currency conversion and settlement.

Depending on the method you choose, your transfer (whether as the sender or receiver) may:

• Pass through intermediary banks
• Involve currency conversion fees
• Take anywhere from minutes to several business days

Key terms to know

Here are some terms to be familiar with to better understand the methods and processes regarding international money transfers.

Exchange rate

This is the rate used to convert one currency into another, e.g., from AUD to USD. Some providers offer rates close to the mid-market (or spot) rate, while others add a margin that effectively increases the cost of the transfer.

SWIFT or BIC code

A SWIFT, also known as a BIC, code is an international bank identifier used to route transfers between banks and financial institutions. Banks also use these codes to exchange messages with each other.

Here are the SWIFT codes for the big four Australian banks:

1. Take note: For most personal international transfers, the 8-character form (e.g., CTBAAU2S) is acceptable. If a system requires 11 characters, you append XXX (e.g., CTBAAU2SXXX)

Intermediary banks

Some international transfers pass through one or more intermediary banks before reaching the recipient. These banks may charge fees, which can reduce the final amount received.

1. Savings.com.au's two cents

Don't just go with the first transfer facilitator you can think of. To get the best deal, it always pays to compare rates, fees, and transfer times of each provider, and work out which suits your personal situation. Essentially, you want to consider their benefits and drawbacks.

Ways to send and receive money overseas

Most international transfer methods can be used for both sending and receiving money. The main difference is who initiates the transfer and which fees apply.

Bank-to-bank transfer

You can send or receive money from overseas through one bank to another. The sender will have to initiate the transfer from their bank account through online or mobile banking. Many Australian banks allow customers to send and receive money overseas directly from their bank account.

What you'll usually need:

• Recipient's full name and address
• Bank name and address
• Account number or IBAN
• SWIFT/BIC code

This type of transfer can be costlier than other available methods, as banks typically apply their own exchange fee on top of the rate applied to your exchange rate for international money transfer.

Here's a summary comparison of transfer fees charged by the Big Four:

The details in this table are accurate at the time of writing and are subject to change.

Pros of bank transfer

• Familiar and widely available
• Suitable for large transfers

Cons of bank transfer

• Often higher fees
• Exchange rates may be less competitive
• Transfers can take several days

International money transfer services (P2P providers)

Peer-to-peer (P2P) international money transfer facilitators like Wise or CurrencyFair typically operate by matching local payments in different countries, rather than moving money internationally through banks. As such, this method usually offers lower transaction fees and more competitive foreign exchange rates than banks.

How it works: For example, if you send $1,000 to a family member in the US using a peer-to-peer service like Wise, your money is paid into Wise's Australian bank account, while your relative receives the equivalent amount in USD from Wise's US bank account.

Pros of P2P transfers

• Lower fees and better exchange rates
• Faster transfer times in many cases
• Transparent pricing

Cons of P2P transfers

• Transfer limits may apply
• Not all currencies or countries are supported

PayPal

You can send and receive money internationally via PayPal by using the recipient's email address, PayPal handle, or mobile number rather than bank details.

PayPal's fee structure varies depending on whether the transfer is personal or commercial, how the transaction is funded (PayPal balance, bank account, card), and which countries/markets are involved.

Fees aren't always charged to both sender and recipient. In many cases, the sender chooses who pays international transfer fees within PayPal's interface.

Pros of PayPal

• Convenient and widely used
• No need to share bank details

Cons of PayPal

• Currency conversion fees can be high
• Transaction fees may apply

Cash pickup services

Services such as Western Union allow senders to transfer money that recipients can collect in cash from a local agent location - often on the same day.

How it works: For instance, Western Union lets you send and receive money internationally either online, via the Western Union app, or in person at a participating agent location. To pick up cash, the recipient typically visits a Western Union agent, provides the tracking/reference number and valid government-issued identification, and completes any required forms.

Acceptable ID varies by country and agent, but generally includes passports, national ID cards, or driver's licences. Other methods of receiving money, such as direct bank deposit or mobile wallet credit, may also be available depending on the destination.

Cash pickup services typically charge higher fees than bank transfers or online P2P services. This includes both a service fee and potentially higher implicit exchange rate margins.

Pros of cash pickup services

• Useful where recipients don't have bank accounts
• Transfers can be very fast

Cons of cash pickup services

• Fees can be high
• Exchange rates may be less favourable

What about currency exchange booths?

If you're travelling overseas, another option is to exchange Australian cash for foreign currency at a currency exchange booth and take the cash with you.

These providers make money by offering an exchange rate that's worse than the mid-market (or spot) rate, and some may also charge a commission.

Timing also matters. Airport exchange booths typically offer the least competitive rates, as travellers often have limited choice before departure or on arrival.

1. Quick tip: To improve your chances of getting a better deal, keep an eye on exchange rates and visit a local currency exchange ahead of time. Ask for a quote and don't feel pressured to accept it; being willing to walk away can put you in a better position to compare offers or negotiate a sharper rate elsewhere.

How to send money overseas

The exact steps depend on the provider you use, but the process generally involves:

1. Choosing a transfer method or provider
2. Entering the recipient's details
3. Selecting the amount and currency
4. Paying the transfer fee and confirming the transfer

Banks and specialist services may ask for additional information (e.g., reason for transfer, source of funds), especially for large transfers.

Reporting requirements (Australia)

When you send or receive money through a bank or licensed remittance service, the provider is usually required to report the transfer to AUSTRAC as part of anti-money-laundering regulations. For physical cash or negotiable instruments of AUD 10,000 or more crossing the border, travellers must complete a declaration themselves.

How long does it take to send money overseas?

Transfer times can range from minutes to several business days, depending on the destination country, the currencies involved, and whether intermediary banks are used.

• Specialist money transfer services and some digital providers can often settle funds within minutes to the same day, particularly for online transfers.
• Traditional bank-to-bank transfers, especially those involving multiple financial institutions or time zone differences, may take 2 to 5+ business days.

How to receive money from overseas

To receive money from overseas, you'll need to provide the sender with accurate details. These may include your:

• Full name (as it appears on your account)
• Bank's name and address
• Account number or IBAN
• Bank's SWIFT/BIC code

If any of these details are incorrect or incomplete, the transfer may be delayed or returned.

How long does it take to receive money from overseas?

Receiving money can take anywhere from a few hours to several business days, depending on the transfer method used, the countries and currencies involved, and whether intermediary banks are used to process the payment.

Fees and costs to watch out for

International transfers can involve several types of fees, including:

• Transfer fees charged by the provider
• Exchange rate margins added to the conversion rate
• Intermediary bank fees, which may be deducted along the way
• Receiving fees charged by the recipient's bank or provider

Because these costs aren't always shown upfront, it's worth checking how much the recipient will actually receive before confirming a transfer. Some providers guarantee the final amount delivered, while others don't, which can make a big difference to the total cost.

How to choose the best international transfer option

The best method for sending or receiving money overseas depends on your priorities. Before sending or receiving money overseas, consider:

1. How quickly the money needs to arrive
2. The total cost, including exchange rates and hidden fees
3. Transfer limits
4. Ease of use and customer support
5. Security and fraud protection
6. Whether you need cash pickup or bank deposit