Overseas Money Transfers 101
International Money Transfer (IMT) is a way of electronically transferring cash to someone in another country. Typically there have been some distinct big players in this space, but innovation from digital providers has seen traditional banks get a bit more competition in recent years.
Whether you're paying contractors, supporting family abroad, or funding an international move, knowing how IMT works is an important first step to take.
What you need to know about international money transfers
International transfers now extend beyond bank-to-bank services. Today you’ll find traditional banks, specialist forex providers, and digital platforms. Each option offers different benefits depending on the transfer needs. While bank transfers remain common, these new alternatives usually save both time and money.
So, if you need to move money overseas, don't assume that directly approaching your local bank branch is the smartest way to go. Bank exchange rates have large profit margins built in, especially for larger sums. On the other hand, digital providers have helped to change the market with more competitive rates and faster transfers.
Costs of sending money overseas
When sending money overseas, you'll encounter costs like:
- Sending fees
- Receiving fees
- Exchange rate margins
- Correspondent bank fees
- Weekend exchange rate markups
- Currency conversion fees
Choosing an IMT transfer method
Choose your transfer method based on the amount, destination, and speed needs. Specialist forex brokers can have better rates, particularly for large transfers. Meanwhile, most digital platforms provide near-instant transfers to many countries with mid-market rates and clear fees. Their mobile apps offer real-time tracking and instant notifications.
How to make an international transfer
International transfers need your recipient's full banking details, including their bank's SWIFT/BIC code. This 8-11 character code routes money to the correct bank, found through the recipient bank's website.
Typically digital providers offer additional options like mobile wallet transfers or cash pickup. These alternatives help when sending money to countries where bank accounts are less common.
Comparing providers
It can be tempting to default to your local bank for overseas transfers. However, while secure, banks rarely offer the best value, especially for large transfers. Compare provider quotes on both rates and fees, focusing on exchange rate margins as these impact costs most.
Different transfers may need different providers. Consider your amount, destination, speed needs, and transfer frequency. If you use IMT regularly, compare international money transfer providers on Mozo.
* The exchange rates offered by each provider are indicative exchange rates that have either been supplied by each provider or gathered by Mozo. Exchange rates fluctuate constantly and as a consequence the exchange rates listed here may vary to the actual exchange rate you are quoted by a provider. Please ensure you confirm the actual exchange rate with the relevant provider prior to conducting any transaction. These exchange rates are updated every hour.
^See information about the Mozo Experts Choice International Money Transfer Awards
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