Many banks in the United States will not cash a foreign check unless it is payable through a bank in the United States. It is expensive. If the American bank accepts the check, they will keep a percentage of the exchange rate. Also, they may charge a foreign-check processing fee. The American bank may impose a hold on the funds. This means the money won’t be available to the recipient until the check clears, which may take days, weeks or months.
Expect to pay a flat fee for initiating the wire transfer. Also, the recipient will pay a flat fee for receiving the wire transfer. The amount of the fee varies by bank. International wire transfers can take anywhere from three to five days.
SWIFT codes are international identifier codes that are assigned to every bank by Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) in Belgium. [4] X Research source The routing number is a nine-digit code that represents your U. S. bank’s location. You can find it on the bottom left-hand side of your checks. [5] X Research source
You pay in your local currency, and the recipient in the United States receives the money in U. S. dollars. Therefore, know the exchange rate and adjust accordingly so that the recipient receives the correct amount. For example, suppose you are in Australia and you want a recipient in the U. S. to receive $20, and the exchange rate is 1 AUD (Australian dollar) = 0. 6985 USD (U. S. dollar). You would need to send $28. 62 in AUD for the recipient to receive $20 USD. The fees for sending money internationally vary depending on the amount you are sending, how quickly the money needs to be available and the payment type you choose.
The price per transaction depends on the currency you are using. It is generally a percentage of the amount sent plus a flat transaction fee. [7] X Research source
Xoom can send money to 56 countries outside of the US and allows you to send money to anyone with a US bank account. In 2012, Consumer Reports ranked Xoom as the best way to transfer money internationally, beating out PayPal, MoneyGram and Western Union in fees and exchange rates. [9] X Trustworthy Source Consumer Reports Nonprofit organization dedicated to consumer advocacy and product testing Go to source
Forex companies should only be used for large transactions of over $3,000. The company does not charge a fee; they make money on the exchange rate. [11] X Research source Consider OFX, an online forex company that accepts wire transfers from your bank account or you can apply to set up an ACH direct debit. Most transfers take one to two business days and you can track the progress on their app. The fees are minimal — $5 for transfers under $5,000, and no fee for $5,000 or above. [12] X Research source
If you are comfortable with the current exchange rate, then use it to complete the transaction.
You can use this strategy if you think your local currency with weaken before the trade occurs.
For example, one service may charge you a higher fee but offer a better exchange rate. Look at the total amount the recipient receives. Sometimes paying a higher fee costs less in total because of a favorable exchange rate.
