How International Money Transfers Work

An international money transfer moves funds from a sender in one country to a recipient in another. The transfer provider collects the sender’s money, converts it into the destination currency when necessary, and delivers it using a supported payout method.

The total cost usually consists of the visible transfer fee and an exchange-rate markup. The cheapest provider is therefore not always the one advertising the lowest fee.

How an international money transfer works

Most international transfers follow these steps:

1. You select the destination country and currency.

2. You enter the amount you want to send.

3. The provider presents an exchange rate, fee, estimated delivery time, and recipient payout.

4. You create an account and complete any required identity checks.

5. You provide the recipient’s details.

6. You fund the transfer using a bank account, card, or another supported payment method.

7. The provider processes and converts the funds.

8. The recipient receives the money through a bank account, card, wallet, or cash pickup location.

The exact process depends on the provider, countries, currencies, transfer amount, and payment method.

1. Starting a transfer

A transfer begins when you choose:

• The country you are sending money from

• The destination country

• The sending currency

• The receiving currency

• The amount you want to send

• How you will pay

• How the recipient will receive the money

Some providers support only specific country and currency combinations. A provider available in one jurisdiction may not offer the same service, price, or protections in another.

Before opening an account, check that the provider supports your required destination, currency, transfer amount, and payout method.

2. Receiving a quote

The provider then calculates a quote showing how much the transfer will cost and how much the recipient should receive.

A quote may include:

• The amount you send

• The transfer fee

• The provider’s exchange rate

• The amount the recipient receives

• The payment method

• The payout method

• The estimated delivery time

• The period for which the quote remains valid

The recipient payout is often the most useful number for comparing offers. It reflects the combined effect of the fee and exchange rate.

Quotes can change because of market movements, provider pricing, payment methods, or promotions. Always confirm the final quote before paying.

3. Understanding the exchange rate

When two different currencies are involved, the provider converts the transfer using its customer exchange rate.

You may also see a mid-market exchange rate. This is a reference rate derived from the prices at which currencies are traded. It does not necessarily represent the rate available to an individual customer.

A transfer provider may offer a rate below the mid-market rate and retain the difference as an exchange-rate margin or FX markup.

For example:

• Mid-market rate: 1 USD = 17.50 MXN

• Provider rate: 1 USD = 17.20 MXN

• Amount exchanged: 1,000 USD

• Recipient receives before other fees: 17,200 MXN

At the mid-market rate, the same 1,000 USD would equal 17,500 MXN. The 300 MXN difference represents an indirect cost built into the exchange rate.

Learn more in our guide to [FX markup](/en/guides/fx-markup/).

4. Understanding transfer fees

A provider may charge one or more fees for processing a transfer.

Common charges include:

• A fixed transfer fee

• A percentage-based fee

• A card payment fee

• A bank transfer fee

• A cash pickup fee

• An expedited delivery fee

• A receiving or intermediary bank charge

• An exchange-rate markup

A provider advertising a zero transfer fee may still earn money through its exchange rate. Another provider may charge a visible fee but offer a stronger rate and a higher final payout.

The total cost should therefore be evaluated using both the fee and the exchange rate.

5. Funding the transfer

The funding method determines how you pay the transfer provider.

Common funding methods include:

Bank transfer

You send money from your bank account to the provider.

Bank transfers may offer lower fees, but the provider may need to wait for the funds to arrive before processing the transfer.

Debit card

Debit cards can provide faster funding than a bank transfer. However, the provider may charge an additional card fee.

Your bank may also classify certain transactions differently, so check its terms before paying.

Credit card

Some providers accept credit cards, but this can be more expensive. The provider may charge a card fee, and the card issuer may treat the transaction as a cash advance.

This may result in additional charges or immediate interest.

Digital wallet or local payment method

Availability varies by market. Some providers accept digital wallets, open-banking payments, or country-specific payment methods.

Always check the complete price before selecting a funding method.

6. Identity verification

Money transfer providers are generally required to perform customer verification and compliance checks.

You may be asked to provide:

• Your full legal name

• Date of birth

• Residential address

• Phone number or email address

• Government-issued identification

• A photograph or identity verification video

• Information about the recipient

• The purpose of the transfer

• Evidence showing the source of funds

Larger or unusual transfers may require additional documentation.

Verification can delay the first transfer, so complete any required checks before an urgent payment deadline.

7. Providing recipient details

The information required depends on the destination and payout method.

For a bank deposit, you may need:

• The recipient’s full legal name

• Bank name

• Account number

• IBAN

• SWIFT or BIC code

• Routing number

• Branch code

• Recipient address

• Purpose of payment

For cash pickup, the provider may request the recipient’s name exactly as it appears on their identification document.

Incorrect recipient information can delay, reject, or misdirect a transfer. Review every detail carefully before confirming payment.

8. How providers move the money

International transfers do not always involve sending the same money directly across a border.

Providers may use:

• Local bank accounts in both countries

• Correspondent banking networks

• Payment processors

• Card networks

• Local payout partners

• Digital wallets

• Internal liquidity and settlement systems

For example, a provider may collect USD in the United States and instruct its local partner to pay MXN from an account in Mexico. The provider later settles balances between its entities or partners.

This approach can reduce the time and cost associated with traditional cross-border bank payments.

9. Recipient payout methods

The recipient may receive money through:

Bank account deposit

Funds are deposited directly into the recipient’s bank account. This is one of the most widely supported payout methods.

Cash pickup

The recipient collects cash from an approved agent or branch after presenting identification and, where required, a transaction reference.

Mobile wallet

Funds are delivered to a supported digital or mobile wallet.

Card deposit

Some providers can send funds to an eligible debit card.

Home delivery

Cash delivery may be available in a limited number of countries and locations.

Payout methods can have different fees, limits, delivery times, and verification requirements.

10. How long international transfers take

An international transfer may arrive within minutes or take several business days.

Delivery time depends on:

• The sending and receiving countries

• The currencies involved

• The provider

• The payment method

• The payout method

• The transfer amount

• Identity and compliance checks

• Bank processing times

• Weekends and public holidays

• Recipient information

• Local payment infrastructure

A fast estimate is not a guarantee. The delivery period may begin only after the provider receives your payment and completes all required checks.

If timing is important, check whether the provider distinguishes between funding time, processing time, and final delivery time.

11. Transfer limits

Providers may apply minimum and maximum transfer limits.

Limits can depend on:

• Your country of residence

• The destination country

• The sending and receiving currencies

• The payment method

• The payout method

• Your verification status

• The age of your account

• Regulatory requirements

• Daily, monthly, or annual limits

Banks and card issuers may impose separate limits.

For a large transfer, confirm all applicable limits before funding the transaction. Read our guide to [comparing large international transfers](/en/guides/large-transfers/).

12. Tracking the transfer

After payment, the provider usually issues a transfer reference or tracking number.

A transfer may move through statuses such as:

• Awaiting payment

• Payment received

• Verification required

• Processing

• Converted

• Sent to payout partner

• Available for collection

• Delivered

• Cancelled

• Refunded

Keep the transaction receipt, reference number, quoted rate, fee information, and provider communications until the recipient confirms delivery.

13. Why a transfer may be delayed

Common reasons for delays include:

• Incomplete identity verification

• Additional compliance checks

• Incorrect recipient details

• A mismatch between the recipient’s name and bank account

• Delayed bank funding

• Card payment rejection

• Weekends or public holidays

• Recipient bank processing

• Transfer limits

• Technical issues

• Requests for proof of funds

• Review of an unusual or high-value transaction

Respond promptly if the provider requests additional information.

14. Can an international transfer be cancelled?

Cancellation depends on the provider’s terms and the transfer status.

A transfer may be cancellable before conversion or payout. Once the money has been delivered, collected, or deposited, cancellation may no longer be possible.

A refund may also be affected by:

• Non-refundable fees

• Exchange-rate changes

• Bank charges

• Card processing costs

• Time required to return the funds

• The payment method originally used

Review the cancellation and refund terms before confirming a transfer. If you make a mistake, contact the provider immediately.

15. How to compare transfer providers

Compare providers using the same:

• Sending amount

• Sending currency

• Receiving currency

• Destination

• Payment method

• Payout method

• Comparison time

Then examine:

• Final recipient payout

• Transfer fee

• Provider exchange rate

• FX markup

• Estimated delivery time

• Transfer limits

• Regulatory status

• Customer support

• Cancellation and refund terms

Do not select a provider based only on a zero-fee claim or headline exchange rate.

Kredly compares observed offers using the amount expected to reach the recipient after identifiable costs. Read our [Methodology](/en/methodology/) to understand how results are calculated and ranked.

16. How to transfer money safely

Before sending money:

• Confirm that you are using the provider’s official website or application

• Check the legal entity serving your country

• Verify the provider’s regulatory status

• Review the final fee, exchange rate, and recipient payout

• Double-check all recipient details

• Never share passwords or verification codes

• Be cautious if someone pressures you to act immediately

• Do not send money to a person you cannot identify

• Keep transaction records and correspondence

Money transfers can be difficult or impossible to reverse after delivery.

Use our [international transfer safety checklist](/en/guides/transfer-safety/) before sending money to a new recipient or using an unfamiliar provider.

17. Common transfer scams

Warning signs can include:

• Requests to send money to unlock a prize or inheritance

• Pressure to pay immediately

• Requests from someone impersonating a bank, government agency, or family member

• Investment opportunities promising guaranteed returns

• Sellers refusing secure payment methods

• Requests to move money on behalf of another person

• Instructions to hide the purpose of a transfer

• Requests for passwords, PINs, or one-time verification codes

Stop the transfer and independently verify the request if anything appears suspicious.

If a transfer has already been sent, contact the provider and your bank immediately. You may also need to report the incident to the appropriate authorities.

18. Before confirming a transfer

Use this final checklist:

• Is the provider available and appropriately regulated in your jurisdiction?

• Are the recipient’s details correct?

• What is the complete transfer fee?

• What exchange rate will be used?

• How much will the recipient receive?

• Is the quote still valid?

• How are you funding the transfer?

• When is delivery expected?

• Are additional bank or card charges possible?

• Can the transfer be cancelled?

• What documentation may be required?

• Do you know and trust the recipient?

Review the provider’s current terms and final quote before paying.

Key takeaway

The best way to compare international money transfers is to focus on the final amount received, not only the advertised fee.

A good comparison considers:

• The provider’s exchange rate

• FX markup

• Visible fees

• Funding and payout methods

• Delivery time

• Transfer limits

• Regulatory status

• Cancellation terms

Rates and provider terms can change quickly, so always verify the final offer directly with the provider before completing a transfer.