Send money to the USA
In 2017, the United States received $6,621 million in remittances. The top five countries from where US nationals send money home are Mexico, Canada, United Kingdom, Puerto Rico, and Germany. In the 2017 financial year, US immigrants domiciled in Mexico sent $1.774 billion of remittances to their loved ones back home.
The U.S. Department of State’s Bureau of Consular Affairs (CA) estimated in 2016 that over 9 million Americans live abraod. Most of the US emigrants are skilled workers in emerging economies, naturalised US citizens returning to their home countries, and missionary workers.
If you are an overseas American and want to send money home, you need to be clear on the procedures and requirements. Some of them include various ways to send money to the United States, the information to provide when sending and receiving, the advantages of online money transfer services, and specific things to consider when sending. This guide will delve into those areas and more.
How To Send Money To USA
Sending money to USA is simple and easy. Follow these steps to get started.
Find a Trusted Provider
Sign Up and Deposit
Transfer Money
Ways To Send and Receive Money In USA
There are multiple ways to easily send and receive money in the USA but these will largely depend on the provider you decide to use. Below you will find everything you need to know about sending and receiving money.
Ways to Send Money to the United States
With a nominal GDP of $19.39 trillion (2017 est), the U.S. has retained top position as the world’s largest and most developed economy since 1871. It has a well developed financial system comprising financial intermediaries and financial middlemen.
There are several options when sending money to your family, relatives, and friends in the U.S. You can opt for international wire transfers, online money transfer services, international checks or even money orders.
Bank Wire Transfers
The U.S. banking system is the most extensive in the world. The number of FDIC-insured commercial banks in the country in 2017 was 4,909. Also, being the most banked society in the world, your loved ones can access money sent to them conveniently.
Most banks in the U.S. readily accept both international wire transfers denominated in the dollar and those denominated in foreign currency. That said, some banks may require different receiving information based on the originating currency.
Bank wire transfer charges largely depend on the location of the sending bank. International wire transfers typically take three to five days to complete a transaction. If your loved ones in the U.S. haven’t received any money after a week, contact the sending bank. As for the transaction charges, expect to pay anything between $30 and $50 per transaction.
Online Money Transfers
The increase in technology, mainly driven by the need for innovative, faster, and inexpensive ways to send money has seen online money transfers dominating the remittances space. Majority of the money transfer companies have their headquarters in the U.S. and trial their products there.
- Western Union -Denver, Colorado
- MoneyGram – Dallas, Texas
- Xoom – San Francisco, California
- Ria Money Transfer – Buena Park, California
Even for companies like WorldRemit and TransferWise that are elsewhere, their presence is all over the United States. The only limitation is the country you are in and the options available there.
Majority of online money transfer services only need you to sign up for an account and top it up using a debit or credit cards, bank transfer, or in-person cash deposit at a store.
Most of the providers allow you to send from their websites, through downloadable mobile apps, or from physical stores. Western Union allows you to start the process online and complete it at a store convenient to you. MoneyGram has a SendBot you can use to send money on the Facebook messenger app.
Using online money transfer services, you can send to the U.S. through any of the following options.
- Transfer to Bank – Choose the bank option from the provider’s sending platform and transfer directly to the recipient’s bank account.
- Cash Pickup – If the recipient is closer to a cash pickup location and they prefer to receive money this way, money transfer service providers such as Western Union, TransferWise, MoneyGram, Xoom, and WorldRemit can help you send.
Money Orders
The United States Postal Service accepts money orders from 27 countries. Many of those countries are in South and North America except for Japan. Money orders are still a secure, reliable, and convenient way of sending money.
International Check
Most banks in the U.S. accept international checks. That said, payment gets delayed until the bank presents the check to the foreign bank. Apart from the fees charged, this method of sending money may be subject to limits.
What’s Needed to Send Money to United States
When sending money to the United States, the provider you choose will largely determine the information to provide. Though circumstances may change especially, with many providers implementing the Know Your Customer (KYC) policies, you’ll still need the following information to send money to the U.S.
- Your government-issued photo I.D.
- Your credit card or debit card information if using this method to fund your transfers
- The recipient’s name as indicated on their I.D. or passport document
- The recipient’s address
- If sending to the recipient’s bank, provide the bank name, account number, routing information, and branch.
Some banks in the U.S. may require specific information and declaration of the funds transferred. Ensure you find out from the recipient in advance to avoid giving incorrect information.
What Are the Ways of Receiving Money in the United States
The United States economy and financial system have expanded possibilities for lots of Americans to transact and do business. The expanded options include the different ways people can receive money from overseas. However, all this depends on the provider chosen and the amount of money transferred.
Whether you are on the East Coast or the West Coast, there are two main ways you can receive money sent to you via money transfers.
Through the bank – You can choose to have the money transferred directly to your bank account. This gives you the safety and liberty to start transacting right away. Also, you can receive large amounts conveniently.
Cash pick up from agent locations – Online money transfers have such established networks in the United States that you can’t miss an agent location near you. That said, Western Union, Xoom, WorldRemit and others have limits on how much you can receive through this method.
What Is Required to Receive Money in the United States?
Most providers will notify the recipient that their money is on the way. When the money gets to the recipient, they’ll be required to provide some information for verification purposes. Without this information, the providers may decline to complete the transaction.
- The recipient’s government issued I.D. The name on the I.D. must match that provided by the sender.
- The PIN, money transfer control number (MTCN) or reference number
The recipient may also be required to identify the sender and the amount to be received. All these checks are necessary especially, in the United States as part of due diligence.
Best Ways To Send Money To The United States
Debit Card
Minutes
Credit Card
Minutes
Bank Transfer
Minutes
Debit Card
Next Day
Bank Transfer
Next Day
Bank Transfer
3-5 Days
Debit Card
3-5 DaysCommon Reasons For Sending Money To The United States
Living in the United States is relatively pricey. Cities such as New York City, Los Angeles, San Francisco, and Boston can cost as much as $1,200 per person per month rent not included. In New York City, the average rental for a one-bedroom flat in the city centre is about $3,000. A decent meal for two in a mid-range restaurant can cost upwards of $75.
Americans in the diaspora, therefore, feel the pressure of some of these expenses and regularly send money home. The following are some of the common reasons for remittances to the United States.
Household Expenses
Despite that Americans do not live in setups like in other continents with extended family living and a sizeable number of dependents, they still have families to support at home. Utilities and food expenses can be quite overwhelming if the recipient doesn’t have gainful employment.
Mortgage Repayment
Mortgage debt on family residences in the U.S. amounts to about $10 trillion. With a lot of mortgage products available, most first-time homeowners opt for homeownership loans. As families move abroad, some put up their houses for sale, others rent them out and continue to pay the mortgage.
Investment Financing
The United States financial market is one of the most complex yet lucrative. From bonds to derivatives to equity and anything in between, Americans in the diaspora have a lot of options back home. The markets are bullish and attractive to overseas Americas looking to build wealth at home.
Charitable Donations
National Center for Charitable Statistics (NCCS) found that there are 1.5 million charitable organisations in the US. Each of these organisations supports one cause or the other within and outside the United States. Out of concern and human good, Americans send money home to support such noble causes.
The use of the money as specified by those sending may not necessarily be the actual use by the households. Beneficiaries may alter the usage of funds to suit their immediate and most pressing needs.
Why Use a Money Transfer Service?
Looking at the options available including international wire transfers, money orders and international checks, online money transfer services stick out as the favourite. The technologies they use, the convenience they offer, and the transfer speed, are more than a bargain for the fees they charge. Here are the reasons Americans in the diaspora find online money transfers attractive.
Easy to Set Up
Favourable Exchange Rates
Lower Transfer Cost
Multi-Currency Support
Safety and Reliability
Transfer Speed
Things to Consider When Sending Money to the United States
Sending money to the United States is relatively simple. However, there are a few considerations you need to make when sending money home. The investment climate, exchange rate risks, and the regulatory environment.
- Investment Climate – Fears of a recession have hit the U.S economy. Economic growth has slowed down, business fixed investment, household spending, and returns on equities especially, bank stocks have begun declining. The US Federal Reserve has remained conservative on adjusting rates. It has opted to maintain them in the 2% to 2.25 range. Investments in such a mature market need to be well calculated, balancing potential risks and returns.
- Regulatory Framework –The trade disputes with China have led to the tightening of the regulatory environment. The movement of funds in and out of the country is closely watched for any irregularities. Funds coming into the country have to be reported, who the recipient is and their purpose. Online money transfer services have transfer specialists who handle such compliance requirements. However, sending through bank wire transfers may require that you explain in person.
- Exchange Rate Risks – In the wake of the trade wars with China, the U.S. government has given indications of currency interventions to protect the economy. Part of the interventions includes weakening the dollar to improve U.S. exports. If and when it happens, Americans in the diaspora will be giving less of the currency in their destination countries for the dollar. However, it could also result in economic consequences that even the White House says would be difficult to control.
Whatever the case, sending money to the United States is a simple process with online money transfers. There are lots of options available such as bank transfers and cash pickups. For a smooth sending exercise, ensure you have all the information required, know the different ways of sending money and considered the different aspects in the U.S. economy that could impact your transfers.
Your Questions Answered
Looking to Send Money Somewhere Else?
Sending money anywhere else in the world is as easy as sending money to the USA. If you’re looking to send money to another country, here is the list of the most popular destinations.
Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com