At A Glance
Sending money abroad is a lifeline for families, freelancers, students, and businesses. But international transfers can be surprisingly expensive. Let’s explore how you can save money when sending money internationally.
Bank fees, exchange rate markups, and hidden charges can eat away at your hard-earned money. If you send money regularly, those costs add up fast. The good news? With the right strategies and tools, you can keep more of your money in your recipient’s hands.
Understanding the Real Cost of Sending Money Abroad
Before you can save, you need to know where your money goes. Here’s what makes international transfers costly:
Bank and Wire Transfer Fees
Banks typically charge $10–$50 for each international wire. If your money passes through intermediary banks, they may take another cut before it lands in your recipient’s account. Services like SWIFT or wire systems add processing fees, sometimes pushing the total cost above $60 per transfer.
Exchange Rate Markups
Most banks and money transfer companies don’t give you the real mid-market exchange rate. Instead, they add a margin (often 2–5%)—a hidden fee that can cost you even more than the upfront charge.
Service Fees and Hidden Costs
Companies like Western Union, MoneyGram, and PayPal often charge 1–10% of the amount sent, plus offer less favorable exchange rates. Even “no fee” offers can hide costs in backend deductions or currency conversions.
The Impact
Sending $100 could easily cost you $110–$120 after all fees and rate markups, meaning your recipient gets less than you intended. For frequent transfers, that’s hundreds lost each year.
Also Read: The Most Popular Ways to Send Money to Family and Friends
Compare Providers and Use Online Tools
Why Comparison Shopping Pays Off
No two providers are the same. A transfer that costs $10 with one company might cost $30 with another. Always compare:
- Upfront fees
- Exchange rates
- Delivery speed
- Payout options
How to Compare
- Use online tools like Wise, Remitly, Revolut, Beem, NerdWallet, or CompareRemit to see real-time fees and rates.
- Look for transparent pricing and check the total amount your recipient will receive.
- Read user reviews for reliability and customer support.
Case Study:
Sending $500 to India:
- Bank: $40 fee + 3% exchange rate markup = $55 in costs
- Wise: $5 fee + 0.5% markup = $7.50
- Gift card: $0–$6 activation, no exchange rate loss if in local currency
Choose the Right Transfer Method for Your Needs
Digital Transfer Platforms
Platforms like Wise, Remitly, Revolut, PayPal/Xoom, and OFX often beat banks for fees and exchange rates. Wise and OFX use the real mid-market rate and charge transparent, low fees. Remitly and Revolut offer flexible delivery (bank deposit, cash pickup, mobile wallet) and fast transfers.
Peer-to-Peer Apps
Venmo, Zelle, and Cash App are great for US-to-US transfers. These apps are often free if funded by a bank account or balance. However, they usually don’t support cross-border payments or multiple currencies.
Gift Cards: A Fee-Free Alternative
Gift cards are a creative, cost-effective way to bypass transfer fees. You buy a digital card (Visa, Mastercard, Amazon, etc.) and send it instantly to your recipient, who can use it online or in-store. No transfer fees, exchange rate markups, or bank accounts are required.
Cryptocurrency
Crypto can be fast and cheap, especially for large or international transfers. However, it comes with volatility and a learning curve, and both sender and recipient need to use crypto wallets.
Traditional Methods
Bank wires and money orders are best for large, formal transactions or when a paper trail is required. They’re secure but usually more expensive and slower than digital options.
Also Read: What Are the Cheapest Ways to Send Money Internationally?
Avoid Hidden Fees and Bad Exchange Rates
Spotting Hidden Costs
- Exchange rate markups: Always compare the provider’s rate to the mid-market rate (Google or XE).
- Backend fees: Intermediary and recipient banks may deduct from the final payout.
- Service charges: Some platforms charge extra for expedited delivery or certain payout methods.
How to Avoid Them
- Send in the recipient’s local currency when possible.
- Read the fine print and check for “processing” or “service” fees.
- Use services with transparent, upfront pricing and real-time calculators.
Take Advantage of Promotions, Discounts, and Loyalty Programs
First-Time User Offers
Many transfer services offer special rates or zero fees for your first transfer. Take advantage of these deals, but always check the exchange rate to ensure you’re not losing out elsewhere.
Referral Bonuses and Seasonal Discounts
Look for referral programs, cashback offers, or holiday promotions. These can help you save on fees or earn rewards for frequent transfers.
Loyalty Programs
Some providers waive fees or offer better rates for frequent senders or large transfers. Sign up for alerts and newsletters to catch ongoing deals.
Optimize Transfer Timing and Frequency
Plan Ahead for Lower Fees
Urgent transfers often cost more. Plan your transfers in advance and use slower, economy delivery options to save if possible.
Combine Small Transfers
If you send money regularly, consolidate smaller transfers into one larger payment to reduce per-transfer fees. Many providers charge a flat fee per transaction, so fewer, larger transfers can save you money.
Schedule Recurring Transfers
Some platforms offer better rates or lower fees for scheduled, recurring transfers. This is great for regular support to family or paying overseas employees.
Use Gift Cards for Fee-Free or Low-Fee Transfers
How Gift Cards Save You Money
- No transfer fees: The recipient gets the full value.
- No exchange rate markup: Use region-specific cards to bypass currency conversion.
- Instant delivery: Digital gift cards are sent via email or text in seconds.
- No bank account required: Perfect for unbanked recipients or those in remote areas.
Example:
Sending $100 as a gift card means your recipient gets $100 to spend—no deductions, no hidden costs.
Best Types of Gift Cards for International Use
- Prepaid Visa/Mastercard: Usable worldwide wherever those networks are accepted.
- Amazon, Walmart, Flipkart: Great for recipients who shop online or need essentials.
- Region-specific cards: Tailored for local markets (e.g., GCash in the Philippines, Flipkart in India).
Tips for Success
- Always check if the card is redeemable in your recipient’s country.
- Use reputable platforms to avoid scams.
Double-Check Recipient Details and Payment Info
Mistakes can lead to costly delays, lost funds, or extra fees. Always:
- Confirm the recipient’s name, bank details, and payout method.
- For gift cards, double-check the email or phone number.
- For large amounts, send a small test transfer first.
Stay Safe and Avoid Scams
Choose Regulated, Reputable Providers
Stick to well-known services with strong user reviews and regulatory oversight. Avoid suspicious platforms or offers that seem too good to be true.
Spot and Avoid Phishing
Never click on links from unknown sources or share your login details. Use official apps and websites.
Keep Records and Track Transfers
Save confirmation emails, transaction IDs, and receipts. Use budgeting or tracking tools to monitor your transfers and spending.
Also Read: Easiest Way to Send Money for Free: Gift Cards 101
Additional Strategies for Saving on International Transfers
Compare Exchange Rates Often
Rates fluctuate daily. Even a slight difference can mean big savings, especially for large transfers. Use comparison tools and lock in favorable rates if your provider offers this feature.
Use Multi-Currency Accounts
Multi-currency accounts let you hold and send money in different currencies, reducing conversion fees. They’re ideal for businesses or frequent travelers.
Opt for Local Payment Rails
Modern platforms often use local payment systems (like SEPA in Europe or ACH in the US) to minimize intermediary fees and speed up transfers.
Avoid Using Credit Cards for Transfers
Credit cards often incur higher fees and less favorable exchange rates. To save, use debit cards or direct bank transfers.
Negotiate for High-Volume Transfers
If you send large amounts regularly, ask your provider for custom pricing or bulk discounts. Businesses can often get better rates by showing their transaction history.
FAQs on How to Save Money When Sending Money Internationally
What’s the cheapest way to send money internationally?
Digital transfer platforms like Wise, OFX, and Remitly usually offer the lowest fees and best exchange rates. If digital gift cards are usable in your recipient’s country, they can be nearly fee-free for small, personal transfers.
How do I avoid hidden fees on my transfer?
Compare both the upfront fee and the exchange rate before sending. Choose providers with transparent pricing, and always check the final amount your recipient will receive.
Are gift cards really fee-free for sending money abroad?
Most digital gift cards have no transfer fees; the recipient gets the full value. Some prepaid cards may have activation or usage fees, so always check the terms before purchasing.
Can I send money internationally without a bank account?
You can use digital gift cards, mobile wallets, or some peer-to-peer apps. These options benefit unbanked recipients or those living in regions with limited banking infrastructure.
How do I know if I’m getting the best exchange rate?
Compare the provider’s rate to the mid-market rate on Google or XE. Use online comparison tools and check the total cost — including all fees and rates — before you hit ‘send.’
Conclusion: Make Your Next Transfer Smarter
There are many ways to save money when sending money internationally. You don’t have to overpay for sending money abroad. By comparing providers, using digital tools, and exploring alternatives like gift cards, you can keep more of your money where it belongs. Plan, avoid hidden fees, and choose the method that fits your needs. For more step-by-step guides and tips, visit Beem’s resource center and start sending money smarter — every single time.
If you found this post helpful, try Beem for more tips on personal finance, budgeting, and other money matters. Download the Beem app here.
