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Ways to Send Money Online

It’s easier than it ever has been to send money overseas, thanks to modern technology and the rise of money transfer providers. These companies have introduced a number of new ways to send money online both domestically and internationally, providing competition from the old order of banks and money orders. Here’s our guide to all the different ways you can make a money transfer, so you can find the best method for you.

Mehdi Punjwani
Author 
Mehdi Punjwani
Fact Checker 
Elliot Laybourne
12 minutes
December 5th, 2023
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Why might I want to send money online?

The digital revolution the world has undergone in the past few decades has made us more connected than ever. Reaching someone on the other side of the world is now as easy as a few clicks of a button, and where the digital world goes, money follows.

International money transfers are a fast-growing and competitive industry, seeking to help people reliably send money abroad for lower fees, faster transfer times. As digital payments become increasingly common within our own countries, the demand for more accessible online international transfers is growing, too.

Some of the most common reasons you might want to send money online could include:

Remittance payments
Paying bills
Making a purchase abroad
Sending money to friends and family

The best money transfer providers to send money online

Ranking

Money Transfer Provider

Exchange Rates and Speed

🥇

Wise

Exchange rates: 0 – 0.5% Speed: 0 - 2 working days

🥈

Xe

Exchange rates: 0.4 – 1.2% Speed: 1 - 4 working days

🥉

Instarem

Exchange rates: 0 – 0.5% Speed: 0 - 5 working days

#4

WorldRemit

Exchange rates: between 0.5 – 1.25% Speed: 2 – 3 days

#5

TorFX

Exchange rates: 1 – 3% Speed: 1 - 3 days

Pros and cons of sending money online

There are various ways you can send money to other people, including money orders and traveler's checks, but the most efficient way to make a transfer these days is online. There are many benefits of sending money online, but it is important to look at the limitations too; so here’s a quick run down of the pros and cons.

  • Convenience: Sending money online is very convenient. All you have to do is log into your provider’s platform or app and arrange the transfer.
  • Cost: Most online money transfer providers can send your money abroad for lower fees than traditional banks.
  • Speed: Online money transfers are quick. In most cases, the transfers are completed instantly or the same day.
  • Global reach: The biggest advantage of online money transfers is that you can send money to any part of the world.
  • Safety: Banks and money transfer companies have multiple layers of security that ensure that your money reaches the recipient safely.

Look out for hidden costs

The hidden cost refers to undisclosed fees in a money transfer process - typically found in weak exchange rates or the fee charged by your provider for sending your money abroad. Always get the full cost of your transfer cost upfront to avoid losing more money than you expected.

The three main ways to send money online

You can choose to send money online via your bank or a money transfer provider. There are money transfer apps that have made sending money, including international money transfers, even more convenient. So, choose an option that suits you the best. If you're new to money transfers.

1. Online banking

Using your bank is a convenient way of sending money online - typically, you’ll just need to fill in the recipient’s details and the amount you want to send, and your bank will handle everything else for you. Online banking is a popular choice for money transfers simply because of how easy it is. You don't need to set up and verify a new account with a third-party provider, and many people trust their bank to keep their money secure. Make sure the details are correct. If you’ve entered incorrect details, refer to our guide: can a wire transfer be reversed?

However, it’s worth noting that the convenience of online banking often comes at a price when sending money internationally. Banks are known to have much higher fees and markups on the exchange rate than alternative options, so may not be the best choice if you are looking to get the most affordable deal.

Banks are expensive

While online banking providers an easy solution to international money transfers, the fees associated with sending your money abroad will often leave you out of pocket compared to using a more specialised provider.

Here are some of the top banks for international money transfers

2. Money transfer companies

Money transfer providers are almost always the best way to send money abroad online in terms of cost. There are now a variety of specialized money transfer companies that enable international transfers at much lower costs than banks, and with quick transfer times to get your money in the hands of the recipient within hours. These providers are regulated by the appropriate financial authorities in the country they are registered in. Most of these companies have local bank accounts or P2P money pools in countries in which they operate, which reduces the costs and transfer times considerably.

Here are some of the top money transfer companies for international money transfers

3. Mobile apps

This option isn’t a completely different way of sending money online, but merely a more convenient way of accessing the two other options in this list. Online money transfers have been made even more convenient and efficient by the mobile apps. Many money transfer companies, and pretty much all banks, have Android and iOS apps that can be downloaded on the smart phones and used for transferring money on the go.

Here are some of the top apps for international money transfers

How to send money online

The exact process for sending money online will vary depending on the money transfer provider you choose, but the basic steps remain the same. Here’s a general idea of what to expect:

Choose an online money transfer provider
Sign up for an account on the transfer provider’s website or app
Provide money transfer details
Make your transfer
Track the transfer

How much it costs to send money online

The cost of sending money online depends on a variety of factors including how you choose to send the transfer, where the money is coming from and going, the currencies involved, and the amount of money being transferred. There are two main types of costs involved in an online money transfer: a transfer fee and an exchange rate margin.

Here’s an explanation of the fees you can expect when sending money online:

Fixed transfer fee
Exchange rate margins

Want to know more about money transfer costs? Here are some of our guides:

How long online money transfers take

Most online transfers occur instantly or same-day, but in some cases they can take up to five days to complete. Transfer times are usually shorter for common currency routes. It will also depend on when the transfer is initiated, like whether you start the transfer on a business day or a weekend or bank holiday.

Sending large amounts of money online

Yes, you can send almost any amount of money online so long as you choose the right provider. When making large purchases, such as buying a holiday home abroad or paying business expenses, you’re best served if you look for providers which specialize in transferring large amounts of money, rather than one of the many companies that focus on smaller remittance payments and have small maximum transfer limits.

By comparing your options and finding the right online money transfer service or bank, you can usually also make savings by negotiating a more favorable exchange rate margin if you’re transferring between two different currencies.

Is there a limit to the amount of money I can send to one person?

Yes. There are limits which vary based on the service you use. Customers with a verified PayPal account can send up to $60,000 in a single transaction. Venmo allows unverified accounts to transact up to $299.99 while verified accounts have limits of up to $4,999.99.

Other services like Global Reach have a minimum limit of £1,000 with no transfer maximum. Each platform will have different limits, so it’s important to check these before signing up if you’re planning on sending large amounts of money abroad.

Is it safe to send money online?

It is completely safe to send money online, you just need to ensure you use a reputable provider and to take steps to ensure you’re not getting scammed. Most of the money transfer companies are fully regulated in the countries they operate in.

Moreover, there are multiple layers of security that keep your money safe as it is being transferred. However, always be alert and protect your personal information to keep out of the grips of online fraudsters. You can read our guide on the safest ways to send money online to help you keep your money safe.

Canceling a transfer

Providers usually have leeway allowing their users to cancel transfers, but not all of them provide for this. For example, transfers on Venmo cannot be cancelled. Also, instant transfers to cash pickup locations and mobile wallets may be difficult if not impossible to cancel.

Where there are possibilities of cancellations, you need to watch out for any charges that may accrue to you because of reversals in foreign exchange positions.

Alternatives to sending money online

Cash

Sending money in cash is usually considered old fashioned, but it can be practical in some circumstances. Money transfer services such as Western Union, Ria, and MoneyGram allow users to walk to any of their branches or agent locations, deposit money in cash, and have it sent to their recipients.

The money sent is generally available for collection at cash pickup points within minutes. Western Union and MoneyGram also support home deliveries of cash in countries such as Vietnam and the Philippines. This works well for recipients without a bank account, and also for older family members who might struggle to get to pick up location.

Using mail is another answer to how to send cash. However, this is often a riskier method as the money can get lost in transit. And when using reputable cash transfer services like those discussed above, there can be some drawbacks such as poor exchange rates and steep fees.

International money orders

International money orders allow users to prepay a certain amount after which they are issued with a printed-out money order. They then mail this to the recipient who upon getting it can cash it out at designated banks and post office locations in supported countries.

In the United States, customers can purchase money orders at any post office locations. The maximum that can be sent per international money order is $700. There is an issuing fee currently at $10.25 and a processing fee based on the country you are sending. Customers can also send money using domestic money orders up to a value of $1,000 per single money order.

Money orders are guaranteed funds and the recipient doesn’t need a bank account to cash them out. However, poor exchange rates and fees make them less attractive. They may also get lost on the way necessitating cancellations and replacements which can be costly and time-consuming.

How to send money domestically

Aside from using banks, you can use services such as Cash App, PayPal, Venmo, and Zelle to send money to a beneficiary domestically. This process will incur lower fees than international transfers, and domestic transfers are typically instant – making electronic transfers a very convenient method of sending money to friends and family in your own country.

What to consider when sending money within the same country

When both you and the recipient are in the same country, transfers are generally fast and less complicated. Here are some important aspects to consider when transacting.

Fees
Speed
Safety
Customer service
Supported payment and payout methods

The process

Having considered the above factors, you now need to get the process of sending money right. The procedure varies from one provider to another, but expect the following steps:

Account registration
Enter your beneficiaries
Link your payment method
Make your transfer
Pay for your transfer

How to send money internationally

Sending money across borders is not any much different from sending domestically. That said, the process is a little complicated and can sometimes be expensive because of the exchange of currencies involved. Therefore, it is important to see how all that plays out before deciding on how to transfer money internationally.

What to consider when sending money to another country

In addition to the considerations for domestic transfers, users sending money across borders need to look at the following aspects.

Exchange rate
Supported countries
Payout methods
How much money you’re sending
Transfer platforms
Other services

The process

The process of sending money abroad is similar to that of domestic transfers, so by and large you simply need to follow the bullet pointed list given above. The only difference is that you need to check the exchange rate you are given when you key in the amount.

Some providers support multi-currency transfers to the same destinations. For instance, you may be able to send a transfer in Euro or USD to France or Spain.

Money transfer providers - The best ways to send money online

Online money transfers have made it extremely easy for people to send remittance payments, pay bills, make purchases abroad, and send money to family and friends at the click of a button. Sending money online is a safe, convenient, and fast way to send money anywhere in the world. However, online money transfers are usually non-reversible and may prove expensive if you don’t choose your transfer provider carefully, so always be sure to do your research and check your transfer details.

You can send money online via banks and specialized money transfer companies – and often you’ll find that your chosen provider has a helpful mobile app. Normally, banks charge higher fees and exchange rate markups than online money transfer companies, so it is always worth comparing your options to ensure you’re getting the best deal. Our helpful money transfer comparison tool can help you do this in a matter of minutes.

Once you have chosen your provider, you just need to sign up for an account, pay for the transaction and make your transfer. Most transfers occur instantly or on the same day, but on less common routes transfers can take up to 5 days to go through.

Other ways to send money abroad

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Contributors

Mehdi Punjwani
Mehdi is an accomplished writer and editor, specializing in personal finance with over five years of experience. His expertise is reflected in his work for prominent brands such as MoneySuperMarket, Equifax, and The AA. Additionally, Mehdi contributes as an author at USA Today, further showcasing his proficiency in the field.
Fact Checker
Elliot Laybourne
Elliot Laybourne is a seasoned financial professional with a 20-year tenure in investment banking in the City of London. His career includes pivotal senior roles at prominent institutions like ABN Amro, Societe Generale, Marex Financial, and Natixis Bank. Elliot's expertise is particularly notable in commodity derivatives and options market-making. Throughout his career, he has served an impressive roster of clients, including Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and the Pennsylvania State Public School Employees Retirement System.