Article by Mozo
If you have a bank account in the USA or have friends or relatives that live there, you may find yourself needing to transfer money from time to time. And that’s ok! It’s always possible with the help of an international money transfer. If you’re new to this, you need to know that an IMT is from bank account to bank account, not via cheque, cash or travellers cheque to account - it doesn't work that way.
Here on Mozo, you’ve got everything you need to send money to the US, from a listing of today’s exchange rates and IMT providers to our in depth buyers guide on everything you’ll need to know about sending money to the USA.
To help you to save time and money when sending money to the US, you can compare today’s USD exchange rates for the providers that offer international money transfers to America here on Mozo with our International Money Transfer Comparison tool.
Sending Australian dollars to the US is easy, but you’ll need to have your own account already set up in America or know someone who has one. Everything is traceable and if it’s a third party you’re sending money to make sure you that you trust and know them so that your money won’t get lost in transaction. Or lost altogether! You can use one of the following establishments to wire your money through:
Banks are the fairest option, right? Think again! After doing some research, you’ll see that banks, including the Big 4 have some of the highest international money transfer rates around. Not only will they slug you a fee for initiating the transfer, also charge you a percentage of the amount and even charge a large flat fee for the recipient receiving the funds. Up to AU$50!
You’re looking at an average fee cost of about $85 for an amount as low as $100. A little too steep, doncha reckon? If you’re planning on sending $1000 overseas via a bank, then your fees could be about: $130. Remember, all fees are on top of the amount that you intend on transferring. Hmmm. You may want to consider some reputable alternatives instead.
Pros: Reliable names you know and trust.
Cons: Higher fees and transfer conversions than most other methods available.
Foreign Exchange Specialist
Sometimes called a Specialist FX or online international payments service, using a company that specialises in foreign exchange means that they are in the business of sending money overseas, possibly at a bundle at a time. Because of their bulk-purchase or exchange, a foreign exchange specialist essentially has the power to save you money in the long run.
Like any business transaction, an online specialist who is familiar with all the pathways to transferring money overseas will be able to simply get on with the job, fast. And they can probably transfer your money to the USA with their eyes closed.
Pros: Low cost, expert and fast for a smooth transfer.
Cons: Higher minimum limits than banks and other transfer options
Wire transfer Agency
An alternative to an online provider is using a wire transfer agency like Travelex or Western Union. You can send money to a specific bank account or an agent location. Money can be transferred in minutes.
Pros: Safe and fast international transfer.
Cons: Fees usually depend on where you are sending the money to and the actual exchange rate you get may be less competitive than banks.
In most instances, you will need to offer your bank or money transfer agent proof of ID, including your address. The recipient of your money transfer in the USA will also need to to prove their identity. This way, monies and profiles of sender and recipient remain transparent and made public if needed. In other words, the transaction is traceable and your money won’t disappear into thin air.
It may be a little overwhelming at first, especially when there’s more than a few international money transfer providers out there. But there are differences between them, so if you can save more than a few dollars on your international money transfer to the US, then why not? Here are the types of things you need to look for:
Firstly, you need to decide which direction you will take - online, in person or over the phone?
Working this out first, will determine your best next steps.
Whichever way you choose to transfer money to the US, some crucial bits of information you’ll need for a successful transfer include:
BIC - Bank Identification Code
SWIFT - Society for Worldwide Interbank Financial Telecommunication
IBAN - International bank account number
Recipient - The person or party who receives the money being transferred
IMT - International money transfer
IMO - International money order.Country guides for transferring money internationally