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Best Way to Send Money from Australia

When looking for the best way to send money internationally to business associates, shops, family, or friends abroad, there are lots of options you can choose from to facilitate your transfer. Traditionally, banks have been the go-to choice for transferring money between people thanks to their well-known brands and international networks, but banks are often more expensive and slower than online money transfer providers. Because of specialist networks, money transfer services are often able to offer better & cheaper ways of sending money abroad and offer better exchange rates.

Yasmin Purnell
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Yasmin Purnell
19 minutes
February 14th, 2023
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When looking for the best way to transfer money internationally, there are several factors to consider. Speed versus cost, convenience versus security, the destination, the amount of money you are sending: all of these things can have a significant impact on what is the 'right' way for you to send your money internationally. The easiest way to send money will change depending on your specific needs.

In this guide, we've covered some of the most important things to consider when finding the best way to send money internationally for you - plus our top recommended providers depending on where you are in the world.

What is the best way to send money abroad?

The best way to send money internationally really depends on your specific needs, which is why we would always recommend comparing providers to find the best rate and transfer time for you. If you are looking to find out what can be classified as the 'best' way, it all boils down to finding out:

After all fees and charges, what is the best way to send money internationally?

What makes a service the best option for you depends on a number of factors such as:

  • Where you are sending the money from

  • Where you are sending the money to

  • How much you are sending

  • The cost of sending your money

  • How the recipient wants to receive the money (bank transfer, credit card, cash, etc.)

  • How fast you need the money to get there

What are the most important things to consider when sending money abroad?

Money transfer companies are particularly useful when sending money in emergencies or to remote areas where people have no access to formal banking services, but they can be used in any scenario and are most often the best option when transferring money overseas.

There are several things that you need to consider when looking for the best way to send money internationally, such as:

The exchange rate

This can sometimes be referred to as the 'hidden cost' of money transfers. As opposed to fees, the exchange rate may not always be shown upfront - but it can add up to be more expensive than upfront fees, particularly when transferring large amounts.

To put this into perspective, consider a scenario where you are sending A$2000 from Australia to the US. Online providers such as Wise, formerly TransferWise, will process your transfer at the mid-market rate (the mid-point between the buy and sell prices of two currencies) and charge a set-rate fee for your transfer.

Other companies like WorldRemit, InstaReM, and XE will offer you an exchange rate that is a small percentage higher than this rate, some with no additional fees and some with an added set charge. The difference between the two rates is called the exchange rate margin, and the amount charged may differ from one currency pair to another. For instance, XE charges a AUS/USD margin of 0.07% and InstaReM charges 0.11%. This means that for your A$2000 transfer to the US, XE will charge A$14, while InstaReM will cost A$22 more than any stated fees. Outside of this, international money transfer comparisons can help when choosing between two companies directly.

While this may sound expensive for sending your money abroad, it's important to note that both these rates compare favourably when transferring money using banks. ANZ bank states that its exchange rate margin is 4.3% for transfers of between 0 and A$25,000, whereas Bank of Sydney's margin is about 5.8%. Again returning to the A$2,000 transfer, on top of the fees charged by each bank, you'll be losing A$86 and A$116 in exchange rate markups with ANZ and Bank of Sydney, respectively.

Banks vs Money Transfer Providers

Money transfer providers will almost always offer more favourable exchange rate markups than banks - usually adding on a percentage between 0.5% - 2% compared to 3 - 5%!

The transfer fee

All money transfer providers will charge you for the cost of using their services to send your money abroad. What's key is finding out exactly how much you can expect to be charged for your transfer. Some providers charge a set fee on top of the current exchange rate, whilst others will charge a percentage-based fee. This can also differ depending on where you are sending the money and on the size of your transfer.

For example, let's assume you want to send money to Australia from the United States. Depending on the bank or online money transfer provider you choose, you'll find a range of fees being charged to transfer money overseas. Online providers tend to come in cheaper than banks. For example, WorldRemit will charge you a flat fee of A$3.99 to send any amount to Australia from the United States, whereas XE charges zero fees, and Wise charges a variable percentage fee depending on the size of your transfer. For instance, sending A$1000 to Australia using Wise will cost you A$9.03 in fees, while A$1500 will cost you A$13.

When looking at the fees charged by banks, it's common to find the rates varying depending on the currency in which the transfer is processed. For instance, a transfer of A$1000 from Chase Bank to the Commonwealth Bank of Australia will cost A$5 if it is processed in Australian dollars but $40 if sent in USD. On top of this, the Commonwealth Bank of Australia will charge the recipient A$11 to collect the funds. These fees are in addition to correspondent and intermediary fees where applicable.

Sending and disbursing network

It's essential to make sure that the provider you are looking at can support the transfer you are looking to make - both facilitating transactions between the countries you're sending from and to and supporting the relevant currencies.

Money transfer providers allow their customers to send funds only from specified countries and currencies to their recipients in designated markets. Normally, a provider would make its sending and disbursing network coverage public, but this is not always the case. However, you can find out from the provider's customer support team, FAQs section or by trying out a transfer if your sending and receiving countries are supported on the platform.

Comparing currency corridors

Some providers are more equipped for transfers between particular countries (known as currency corridors), and can offer much faster transfer times and others, so this is a good factor to compare!

Customer support

Whether you are making a small or a large transfer, nothing beats good customer support. It is not unheard of to experience technical issues such as transfer delays, unexpected fees and transfer payment challenges, and so choosing a service where you can quickly get any questions answered is essential. Some providers have online support teams available through live chat services, others can be reached through email and telephone 24/7 or during specific times. Ensure that you always have your transaction reference details for prompt assistance.

Accessibility across different platforms

Would you prefer to be able to go somewhere to make your transfer, or would you prefer to access your transfer via an app? A large majority of money transfer providers do now have free mobile apps to allow customers to transact on the go for added convenience, but it's worth noting that some providers only work through their online platforms or have restrictions on their apps.

Having access to transfer services on mobile does give you an additional level of convenience and speed when transferring funds - but for some, the ability to make a transfer in person is desirable (for example, if you'll be making cash transfers frequently). You will also find that some companies such as Ria, Western Union, and MoneyGram support both online and bricks-and-mortar transfers. Depending on where you are sending your funds, you may be able to begin your process online and complete it at a physical shop.

Apps vs Bricks-and-Mortar Businesses

For some people, having a physical location for customer support and cash transfers may still be a top priority - however, apps make transferring your money internationally faster, easier, and instantly accessible even when you're on the go, so they're a great feature to look out for.

Ease of setting up an account

For you to send money through any online money transfer provider, you first have to open an account. The procedures for setting up an account, including the information required, vary from one provider to another. Some will ask you to provide proof of your identity and address before completing the process. Others will allow you to send a limited amount of funds and only lift the limits when proper verification has been done. If you want to send money online instantly, you should consider the impact the ease of setting up an account will have on this.

Who is the best provider for sending to & from international locations?

The answer to this question will change depending on the countries involved, and the easiest way to find out the service that works best for you is to use our comparison tool.

The ideal approach to finding the best way to send money internationally is always to choose the provider with the lowest overall transfer cost - although, in some cases, time may take a higher priority over cost. Please take a look at our list of the top 10 money transfer companies to help you make the best decision depending on your needs. Some of our top-rated money transfer services included OFX, WorldRemit, and Wise - but again, the suitability of these companies depends on your individual circumstances. If you're unsure of the steps needed or how to send money internationally, further reading is recommended.

Below, we'll take a look at the best way to send money internationally from the United States and the UK as well as back to Australia.

The United States

When sending money to the United States, one of the most frequent transfer pairings is from the United Kingdom to the United States, so let's have a look at who gives the best value for transfers between these two countries.

If you were looking to transfer £1,000 from the UK to the US through Santander UK, for example, you'd pay a flat transfer fee of £25 on top of a margin above the current mid-market exchange rate of around 3.9-4.10%. In total, you would be looking at paying between £39 - £41 to transfer £1000 - and that's not including the additional charge the receiving bank in the US is likely to charge your recipient (around $15), taking the overall transfer cost to around £50 in total.

In comparison, an online money transfer provider can typically provide much more favourable fees. For the same transfer, Wise could charge a £4.44 transfer fee with no exchange rate margin, while WorldRemit would charge a set fee of £2.99 and an additional margin on the exchange rate of around 1.05% for a total charge of £13.04.

It's clear, then, that using online money transfer platforms is the best way to save money when transferring from the UK to the US. However, this can differ depending on the amount sent, so use our comparison tool, which compares the best providers for sending money abroad.

Australia

We can see the same trend looking at making a similar transfer from Australia. Let’s assume you are making a transfer of A$1000 to the United States. If you decide to use Westpac, you’ll pay a transfer fee of A$10. If you use Westpac Live Online Banking, and A$32 for branch transfers. The margin Westpac adds on top of the mid-market rate is about 4.76%. For your A$1000, this margin translates to A$47.60, meaning the overall fees add up to between A$57 and 80 - nearly 10% of the amount you’re transferring.

If you decide to use providers such as InstaReM, Wise, or WorldRemit for the same transfer, you’ll notice almost immediately the difference in exchange rates and transfer fees. Sending through Wise will cost you A$6.56 with no exchange rate margin charged. WorldRemit charges A$3.99 and a margin of just 0.52%. InstaReM charges A$3.50 in transfer fees. All this means that when using an online money transfer service to send money to the USA from Australia, the overall fees for a A$1000 transfer won’t go over A$10 which is clearly a better way to transfer money.

The United Kingdom

Finally, let's look at the fees and exchange rate margins you can expect when transferring money to the United Kingdom from Australia. Take an example of a transfer of AUD$1000 to the United Kingdom from Australia. If you were to choose a bank such as Bank of Melbourne, they would charge you a flat AUD$10 if you are sending money in foreign currency and $20 if your transfer is in AUD. On top of this, Bank of Melbourne applies an exchange rate margin of 3%, meaning the total fees and charges you pay on your AUD$1000 transfer is around AUD$20-30.

For the same transfer, WorldRemit will charge you a AUD$1.99 fee and a margin of -1.40% on top of the mid-market rate. Wise is similarly cheaper, charging you a AUD$5.14 fee and an exchange rate margin of 0.02% - meaning they're generally a better option if transferring a large amount of money. If you use InstaReM, you'll pay a fee of AUD$7.50 and no exchange rate margins. So in this scenario, WorldRemit would cost you AUD$12.01 less than the interbank rate. The fees you would pay with Wise would be AUD$7.14 and with InstaReM $7.50.

To find the best way to send transfer money online and to know exactly how much your recipient will get when using the different providers and banks, you can use our comparison tool. Nothing beats the knowledge that the provider you are choosing for your next transfer is the fastest and the most affordable.

Specific transfer requirements for sending money internationally

For the best experience when sending money to any country or even locally, you have to play by the rules set by each provider. Failure to abide fully by their requirements may cause unnecessary delays or even transfer cancellations. Below are some of the best practices to follow when finding the best way to transfer money.

Larger Transfers

When making large transfers (generally over A$10,000), there are certain things you will have to watch out for. These include:

  • Bank and provider limits: Your bank may limit the value of the transfers you can make per day, per transaction, or per payment method such as online, phone, or at a branch. Whatever the case, you need to understand the limits very well to avoid bounced transfers. You should also check if there are any upper limits set by the provider.

  • Account verification: Before you make a transfer, you will usually have to verify your account. Most providers prompt you to verify your account if it’s not already verified but make sure you have done this in good time to avoid delays. Depending on provider policies, you may be asked for additional information on top of the proof of address and proof of identity documentation.

  • Fixed exchange rates: Large transfers, because of their size, can amplify even the smallest exchange rate differences into large savings or expenses. Getting the best rate and locking it for the duration of your transfer ensures you not only make savings but also know with certainty how much your recipient will get. This is extremely important when dealing with fixed payments such as rent, deposits, and mortgage repayments.

Credit Card

Paying for your transfer using a credit card ensures that funds reach the online service provider’s account faster for onward sending to the recipient. Despite this advantage, credit card payments are quite expensive compared to bank transfers and bank debits and involve a variety of things to watch out for, such as:

  • Credit card limits: This is the first aspect you need to check. Credit cards are assigned limits either as part of the issuer’s policy or upon your request as the customer. Make sure you check if your limits allow large transfers to avoid being penalised for any bounced payments.

  • Cardholder details: Ensure the name that appears on the credit card matches that on the online money transfer account. Mismatches can result in card declines, delays, and transfer cancellations. Providers won’t allow you to pay using a card that isn’t yours.

  • Use a brand of card that is supported by your provider: Some providers insist that credit cards should be either Mastercard, Visa, or Maestro for them to be accepted. Others proceed to add more conditions requiring cards to be secured by Verified by Visa or SecureCode. It is important you check all this out before you begin your transfer to avoid lengthy delays.

Cash Pick-Up

If your provider allows for cash pickup as a payout option, you can use it for small transfers. For successful transfers you must meet the following requirements:

  • Recipient details: When making a transfer, ensure the recipient’s details are captured correctly. These usually include their name, national identity card number, and address.

  • Transfer code: The code for your transaction is normally sent to you and in some cases sent to the recipient. The recipient has to present the code to claim the funds, otherwise, the transfer may be reversed if no proof is presented.

Bank Account

If paying for your transfer from a bank account, you’ll have to ensure that the details on your account match the information on your money transfer account. In case you are paying from a joint account, you must share proof that you are part of the account holders. This can be in the form of a bank statement that you scan and send to the provider.

Sending Locally

Using services such as Venmo to transfer money locally requires that both you and the recipient have local bank accounts and addresses. If you are in the United States, you may be asked to provide your Social Security Number (SSN), as extra proof of identity. When sending money to different countries there are lots of things you need to consider if you are to get the best deal. Check whether the provider allows sending to your destination in the currency you would like your transfer to be processed in. If it is an emergency transfer, you should also look at the delivery times.

Sending money internationally from Australia

The remittance market in Australia is finally on the rebound after its sharp demise during the Covid-19 outbreak. The country closing its borders to working holidays played a significant part in remittances dropping by 42.16% in Australia. In 2020, remittance outflows totalled 4.3 million (representing 0.3 per cent of the GDP). Almost half of Australia's outbound remittances are to just five countries, China, India, Vietnam, the United Kingdom and the Philippines. With more than 7.6 million immigrants with permanent residence living in Australia and accounting for 29.8% of the population, it's no wonder so many people are sending money overseas with online money transfers often proving to be the most cost-effective method.

Finding the best way to send money internationally for you...

Overall, it's fair to conclude that the best way to send money internationally online will almost always be an online money transfer service rather than an established bank - but again, this entirely depends on your specific transfer needs, so there will never be one set answer.

The variety of money transfer services on offer helps keep their fees and exchange rate margins low, saving you money and ensuring the maximum amount of your transfer possible reaches your intended recipient - but the differences in rates, speed, and more between companies mean comparing your options is always a sensible habit.

Depending on where you're transferring money from/to, the currency pairing your transfer needs, and the amount you are sending, the total fees and charges will be different for each provider. It's only by comparing the options that you can truly find the best way to transfer money overseas.

That's where we come in.

Our easy-to-use money transfer comparison tool can lay out your options clearly for you in seconds, so you can quickly find your best money transfer option. Click the button below to start your comparison and find the best deal for your transfer!

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Yasmin Purnell
Yasmin Purnell is a Content Writer and Editor for Moneyzine.com. Yasmin has a wealth of experience writing across a range of topics within the personal finance, student, and business niche. Yasmin joined the team with the one main mission to provide accessible financial, career and business information and advice for all.
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