Money Transfer FAQs

Author, Andrew Gibson

Last Updated on June 9th, 2024

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The different methods a person can use to make an international money transfer continue to grow.

It can be quite a task going through all these international money transfer methods trying to find the right one for you whilst getting the best value for your money. 

In this article, I’ll go through all the available methods and the different services on offer and try to make this journey a lot easier for you as a customer, answering the most relevant questions.

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Various methods to transfer money internationally (how do they work?)

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Let’s begin by looking at the methods available for international money transfers.

International Bank Transfers

An international bank transfer allows you to send money directly from your bank account to a recipient’s bank account in another country.

Most people sending larger sums will opt for an international bank transfer because it’s a secure and cost-effective method.

But you don’t have to use a bank to do an international bank transfer. A currency broker or an online money transfer service can also do this for you, usually at a lower cost.

Suppose you’re sending money internationally with a currency broker or online service.

Once you’ve accepted an exchange rate and confirmed the amount you wish to send, you will transfer funds from your bank account to the provider.

When received, the money transfer provider will convert your money and send the funds to your chosen foreign bank account.

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Debit or Credit Card 

You can send money internationally through your debit or credit card as payment.

It follows a similar process to an international bank transfer above but without requiring you to transfer funds manually to a money transfer provider, but costs more.

Once you agree on an exchange rate and amount, you will pay for the transfer with your debit or credit card.

The transfer provider will send the correct currency and amount to your recipient’s bank account.

Debit and credit cards are a convenient and quick way to transfer money internationally but come with extra costs.

Credit cards are usually more expensive than debit card payments as they take longer to process.

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SWIFT Payment

If you send money to an international bank account through your bank, the process will likely use the SWIFT method.

SWIFT stands for The Society for Worldwide Interbank Financial Telecommunication.

It is a messaging system for banks and a way for banks worldwide to connect and link using standardised codes for international transfers and payments.

It’s been around since the 1970s.

The main drawback of using SWIFT for an international money transfer is the process takes longer than other methods.

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Google & Apple Pay 

As many do, suppose you have Google or Apple Pay set up on your devices. This method can pay for international money transfers.

Although a convenient and quick way to transfer money internationally, Google and Apple Pay have similar charges to a debit or credit card for international payments.

Selecting a credit card through Google or Apple Pay may incur higher charges than a debit card transaction.

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PISP

Also known as a Payment Initiation Service Provider, PISP allows customers to instruct a money transfer service to make a bank transfer directly from their bank account on their behalf.

Customers can stay in the money transfer service app or website and not leave to open their online banking and manually transfer it themselves.

This method is one of the cheapest options and as cost-effective as a regular international bank transfer.

PISP is a new method of transferring money internationally, so not all providers or high-street banks currently support this service.

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Get an International Transfer Quote

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Which is the best? (convenience vs. cost) 

Ultimately, customers’ main question is, ‘What is the best way to transfer money internationally?’

The answer isn’t the same for everybody!

Finding the best international method depends on the size and frequency of your requirements.

For a small one-off payment, you might favour the simplicity of a debit or credit card. But for anyone looking to transfer large sums of money abroad, the fees become more critical, which makes an international bank transfer the best option.

Exchange rate costs, in particular, can be significant on larger transfers.

So, let’s look at what are considered the best methods for both remittance and large money transfers.

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Remittance

For those wanting to send £1,000 or less to an international bank account, the most significant requirement is how quickly the money transfers.

The methods known for quick transfer times are either debit and credit card transactions or the use of Google or Apple Pay.

Online-only money transfer providers such as Wise, PayPal, and Revolut, are typical services that provide the above international transactions.

These providers usually have much lower overall transfer fees for international money transfers than your high-street bank.

Usually, transfer fees with these online providers can be as little as £0.20 or as expensive as £16, depending on the destination of where your money is going.

As mentioned above, exchange rate charges will also apply, usually a % of the amount you’re looking to transfer; with lower amounts, this won’t add too much cost.

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Large money transfers 

Put simply, an international bank transfer is the best method for sending large amounts of money overseas.

It ticks many of the boxes that customers making a sizeable international transaction want to see.

• It is a method that can keep costs low with the right provider and much lower than online alternatives.
  

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• It is one of the most secure and safe ways to transfer money. Customers should always make sure that the company they choose is FCA-regulated.
  

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• It isn’t the quickest method, but also, it isn’t the slowest. Most European transfers will take between 1-3 days to complete.

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Free Money Transfer Quote

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Which is the cheapest? (Costs compared)

When it comes to finding the cheapest method to transfer money internationally, regardless of the way you eventually choose, the two primary considerations are:

• Transfer Fees
  

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• Exchange Rates

The methods that apply extra charges and costs on top of the two above are:

• Debit or Credit Card Payments
  

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• Google Pay or Apple Pay

The most cost-effective method to transfer money internationally is an international bank transfer.

However, this is only the case if you choose the right provider and don’t use your bank.

Why?

Well, most high-street banks will charge much larger transfer fees for customers for international money transfers.

Compare this to a currency broker or online service for an international bank transfer; you will find providers with no transfer fees.

The only cost you’ll have to consider is the exchange rate %.

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International Transfer Method Costs 

Transfer Method	Transfer Fees	Exchange Rate Charge	Extra Costs?
International Bank Transfer	No (depending on the transfer service chosen)	Yes	No
Google/Apple Pay	Yes	Yes	Yes
Debit/Credit Card Payment	Yes	Yes	Yes
SWIFT	No (depending on the service chosen)	Yes	No
PISP	No (depending on the transfer service chosen)	Yes	No

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Research is vital for the best money transfer 

As this article suggests, finding the best and cheapest transfer method is all about meeting your needs and researching to compare and find exemplary service.

The number of different considerations to think about can begin to mount; in terms of a priority checklist, we’d recommend researching into:

• Compare service transfer fees
  

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• Compare exchange rates (who is offering the best?)
  

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• Talk to a currency broker for advice and support on exchange rates
  

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• Ask: ‘Which method most satisfies my requirements?’
  

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• If you use your bank, read through the small print for the change of any hidden costs.

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Online Exchange Rates can be misleading 

A significant part of the international money transfer process is the exchange rate and finding the best one at that time.

The better the rate you find, the better the value for your money.

With so many offerings online, customers will compare the rates they see immediately.

Doing this is a mistake.

The rates you see first, on comparison sites, or by looking directly on services websites are NOT customer rates.

They are mid-market rates. Usually, services have a warning or greyed wording near the rate to alert customers.

But people can still miss it.

When comparing customer rates, it is essential to get actual quotes sent to you by providers via a call or email and compare those figures.

By doing the above, you will get the best comparison.

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International Money Transfers with No Fees

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International money transfer providers (what’s the difference?)

Three primary money transfer services commonly provide various ways to send money abroad.

These are:

• Banks
  

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• Currency Brokers
  

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• Online Money Transfer Services

All 3 have their pros and cons. Again, your choice of provider will dramatically change the overall cost and support you receive during the transfer process.

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Money Transfer Provider	Pros	Cons
Bank	Convenient, easy to use, familiar. Personal details already filled in.	High transfer fee costs A more significant % of the exchange rate is charged. Consistent support is only sometimes available.
Currency Broker	Lower or, in some cases, no transfer fees are placed on international transfers. Fewer overheads than banks, resulting in a lower % of the exchange rate charged. Customers are provided with consistent support by a personal trader. Customers can get advice and support on when to transfer at the right time.	New customers have to register before transferring.
Online Money Transfer Services	Lower transfer fees than high-street banks. Competitive exchange rates are available. Provide online transfer methods that can produce the quickest transfer times.	Customer support is only available through webchat. Extra costs can apply with online payment methods.

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Quick Summary

1. Multiple methods are available to transfer money internationally, including International Bank Transfers, SWIFT payments, PISP, Debit or Credit card payments & Google or Apple Pay.
   

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2. The best method for you will depend on your specific money transfer needs and the amount you’re sending abroad.
   

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3. The quickest international money transfer method is usually by debit or credit card payment.
   

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4. The most cost-effective method is an international bank transfer through a currency broker or online money service.
   

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5. Always compare customer exchange rates from quotes provided directly to you by the money transfer providers.

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Get a Quote

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More money transfer guidance…

• Details Needed for International Bank Transfers
  

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• How Much Money can be Transferred Out of the UK?
  

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• Receiving Money from Abroad (what you need to know!)

Author, Mike Smith

Last Updated on August 21st, 2024

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Sending an international wire transfer is not something many people are familiar with.

If you have ever needed to transfer money internationally before you may well have heard the term, but not know what it entails.

Providing you have the correct information and professional guidance, a wire transfer can be an efficient way to transfer money across borders.

In this guide, we will walk you through the steps of making an international wire transfer, the required details, available services, costs, and more.

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What is an International Wire Transfer?

In a nutshell, an international wire transfer is a method used to send funds between banks across international borders.

The difference between a wire transfer and other ways of making international money transfers is that a wire transfer involves direct bank-to-bank transfers.

The usual practice when making an international wire transfer is that the sender’s account will be debited using their local currency.

These funds will then be converted into foreign currency so that your intended recipient receives the funds in the currency that they have requested.

Of course, these funds are subject to exchange rates which can fluctuate and will affect the total amount that your recipient receives.

Transfer fees and exchange rates vary depending on the banks and services used, potentially making it more expensive for smaller amounts.

As we have already clarified, an international wire transfer is a way to send money between banks overseas, quickly and securely.

But how does it differ from other ways to send money internationally?

The main differences relate to speed and directness.

Wire transfers are fairly quick, usually taking 3-5 business days, depending on where you’re sending your money, other money transfer services are quicker, however, such as an international bank transfer or using an online money transfer app.

To summarise, when making an international wire transfer, the sender’s bank acts as an intermediary, sending information about the transfer to the receiver’s bank before the money is moved, whereas an international bank transfer simply involves sending money directly from one bank account to another and can be done by other money transfer services.

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What details are required for an International Wire Transfer?

To make an international wire transfer, you need to make sure you have all the necessary information at hand.

This step-by-step guidance below explains exactly what details you will need:

Recipient’s Bank Information 

• Clarify and confirm the recipient’s full name and address.
  

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• Confirm the recipient’s bank account number. (Remember to double-check this!)
  

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• Determine the bank’s full name and address.

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Bank Identifier Code (BIC) or SWIFT Code

• Ask your recipient for the BIC or SWIFT code for their receiving bank.
  

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  a SWIFT code – often called a BIC number – is a standard format for Business Identifier Codes. It’s used to identify banks and financial institutions globally. It says who and where they are – a sort of international bank code or ID.
  

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• This code is essential for international transfers.

A top tip is to ALWAYS double-check accounts or IBANs to avoid any errors during your transfer. 

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Currency and Amount 

• Select the currency you want to send, in most cases, this will be your local currency.
  

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• Determine the exact amount you wish to transfer.

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Begin the Transfer Process

• Speak with a currency broker, or if using your bank, it’s always a good idea to visit the branch in person if at all possible.
  

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• You will need to give your chosen service provider all of the relevant information relating to the recipient, including the BIC or SWIFT code and IBAN (if required).
  

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• Again – we cannot stress enough the importance of double-checking that all the information is 100% accurate before finalising the transfer request with a service.

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Available Money Transfer Services

• Do your research!
  

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• This is YOUR money and you want to ensure you are using the very best method to make an international money transfer.
  

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• We would recommend talking to a professional currency broker for an unbiased opinion.
  

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• It’s vital to ascertain that making an international wire transfer is the best option for you.

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Foreign Exchange Rates and Fees 

• Be aware that the exchange rate offered by your bank can dramatically affect the final amount received by the recipient.
  

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• Ask your bank to clarify this BEFORE you make this transfer!
  

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• It may be advisable here to compare this rate to that offered by other money transfer services available.
  

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• Make sure you have absolute transparency from your bank about any transfer fees that they may apply.
  

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• Fees can vary depending on the provider and the countries involved in the transaction.

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Confirmation and Tracking 

• It’s essential to ensure that you are given both a confirmation receipt and reference number for your international transaction.
  

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• Be sure to keep this information safe in case you may need to refer to it in the future.

Follow these above steps and you should have no problem deciding if making an international wire transfer is the right option for you.

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How long will an International Wire Transfer take?

International wire transfers usually take 1 or 2 days but can take as long as 5 days depending on the currency. For example, US dollars and Euros are normally quicker than other currencies. 

Depending on when you make the transfer with your bank, this can also make the transaction longer as banks will close over a weekend.

However, the service is widely available in over 200 countries, providing a secure method to transfer money to an international recipient’s bank account.

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Compare Our Rates

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Does an International Wire Transfer differ when sending money outside the EU?

Transferring money within the EU or to countries outside of the European Union can bring many differences, most importantly in terms of costs and transfer times.

When making a wire transfer within the EU it is generally a straightforward and efficient process.

However, when you go beyond the EU borders and look at global transfer to other continents for example, things can become more complicated.

International wire transfers outside the EU may take several business days, or even longer, depending on the countries involved and their banking systems.

It’s also vital to remember that fees can be higher, with both your bank and your beneficiary’s bank charging for the service.

Always be sure to clarify what charges will be incurred with your bank before initiating a wire transfer. 

As an alternative, you may wish to consider online payment platforms or remittance services as they may offer faster and more cost-effective options for international transfers outside the EU.

The potential challenges and higher costs when sending money to destinations outside the EU via your bank can also be minimised by using a currency broker, like Key Currency.

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Are International Wire Transfers Safe? 

Providing you have double-checked the recipient’s details, and you are both using established banks, international wire transfers are a safe way to send money overseas.

When the money lands in the recipient’s account, it will be declared as ‘cleared funds’ and this means that the transaction is complete.

The beneficiary should then be able to access their funds immediately.

It is extremely uncommon for an international wire transfer to encounter issues, but it is not unheard of.

As an example, should you have the misfortune that a thief or hacker gains access to the recipient’s account, they could immediately receive and withdraw funds and/or send them elsewhere.

If you’re wiring a large amount, it’s worth speaking to the payee to establish extra controls for the transfer.

The beneficiary should double-check check no one else has access to the receiving bank account.

When you wire money from bank to bank, there is always a risk but if you take the steps above you are minimising the chances of it happening to your wire transfer.

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You May Also Like Reading…

Transferring money to Europe

How to transfer large sums of money internationally

Steps to find the best Euro rate 

Author, Andrew Gibson

Last Updated on August 28th, 2024

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Whatever your reason for transferring money to Australia or exchanging your currency for Australian Dollars, finding the best exchange rate is essential.

A better exchange rate means more money for you.

In this article, we look at why it is so essential, tips on how to find the best AUD rate, the current best services available, and other areas you should consider.

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Get a Great AUD Rate with Key Currency

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Money Services Offering the Best Australian Dollar Rate 

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We have done some research, and below you will find the best type of money service for international money transfers, large or small, and travel money.

Best for Large International Transfers to Australia

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Best	Worst
Currency Brokers (eg Key Currency)	High Street Banks (eg Lloyds, Natwest, Barclays)

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Comparing Currency Brokers to Banks

If you need the best AUD exchange rate for a large international money transfer, then currency brokers (money transfer specialists) are likely your best option.

There are three main reasons for this:

Lower Fees

Currency Brokers usually charge much smaller fees for large transfers to Australia, and some providers don’t charge a transfer fee like ourselves at Key Currency. 

A currency broker is typically a much cheaper alternative for international money transfers than high-street banks.

The range of high-street bank transfer fees will vary between banks and the destination you’re looking to send to, but usually, it is between £10 to £35 for a money transfer to Australia.

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Bank	International Money Transfer Fee
Lloyds	3% of the transferred amount
NatWest	£15 per transfer.
RBS	£15 per transfer.
Barclays	Up to £35 per transfer.
Santander	£25 per transfer.
HSBC	£17 per transfer.

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If you expect to make multiple money transfers to Australia over time, these transfer fees with a bank will begin to pile up.

Competitive AUD Exchange Rates

With much lower overheads than your typical bank, currency brokers can offer customers more competitive AUD exchange rates.

Banks typically charge between 3-6% on the amount transferred for the exchange rate. This charge is on top of the transfer fees mentioned above. 

Exchange rate charges will depend on how much you want to transfer to Australia, so finding the best and most competitive rate will save you and your recipient from losing money.

Currency brokers will be one of the best ways to achieve this.

Human Support 

How currency brokers stand apart from other money transfer services, such as a bank, is the communication and personal support customers get.

Not all currency brokers offer this service, but a few will allocate a personal trader to you.

Expert traders can monitor the AUD exchange rate and ensure you get the most favourable rate with that currency broker.

Doing so takes away much of the time and stress off your plate.

It is reassuring to have that personal touch, especially when transferring large sums of money.

Currency brokers can support you through the whole money transfer process to Australia.

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Best AUD Rates for Small Money Transfers

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Best	Worst
Online Services (eg Wise, Revolut)	High Street Banks (eg Barclays, Lloyds, Natwest)

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An online money transfer service can be a good option for sending smaller amounts of money to Australia (under £500).

There are various providers for online remittance money transfers; these include Wise, PayPal, Revolut and Western Union.

The reason why online money transfers are much better than banks for remittance transfers comes down to three reasons:

1. Their transfer fees are much lower than high-street banks.

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   Online Money Service	International Transfer Fee
   Wise	£4.35
   Western Union	The first transfer is free, then £3.89 per transfer.
   Revolut	£3
   PayPal	£2.99

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2. They usually provide quicker transfer times; sometimes, the transfer will arrive on the same day; this may be an essential factor with smaller amounts.
   

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3. They will offer much more favourable AUD exchange rates compared to known banks.

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Best AUD Rates for Travel Money

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Best	Worst
Supermarkets (eg Tesco, Sainsbury’s)	Airports (eg Travelex, Moneycorp)

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If you’re travelling to Australia soon and need to exchange money for Australian Dollars, we suggest using known supermarket chains or an online currency exchange.

Our findings currently show that John Lewis, Waitrose, Tesco and Sainsbury’s are offering the best AUD exchange rates for travel money with free insured delivery. 

It is highly recommended that you exchange your currency before getting to the Airport and doing it there.

The 0% commission signs you see are deceiving.

Currency exchanges at Airports will have much higher margins on the AUD exchange rate to substitute for the above. This can be as high as 30% on the amount you exchange.

Exchanging £750 into Australian Dollars at the airport could see you lose up to £225 from their exchange rate costs.

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Free Money Transfer Quote

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How to Research for the Best Australian Dollar Rate 

Ultimately, finding the best Australian Dollar exchange rate comes down to putting in the time to do the research.

There are a lot of different providers and services around these days, so comparing them against one another will help you get the best rate available.

What to Consider with Comparison Sites

When you’re at the start of looking for the best Australian Dollar rate available, you will more than likely come across various comparison sites.

They dominate the web most of the time.

Many comparison websites for AUD exchange rates only showcase money exchange and transfer websites that are commercial partners with them.

Going through a comparison site to ‘get the best exchange rate’ actually adds another layer of cost to you as a customer.

And it’s important to remember that many providers and money transfer services won’t be shown on comparison sites.

As a tip: If you find reasonable rates by researching comparison sites, go directly to the provider. 

Comparison sites sometimes show pre-set exchange rates, especially on weekends when the market isn’t open, and most customers will be researching at this time of the week.

Whether it is your bank, supermarket, currency broker or online money service, they can provide live AUD exchange rates.

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Mid-Market Rates vs Customer Rates 

When comparing and looking at different AUD exchange rates, you may see that the ‘mid-market rate’ is in grey or close to the AUD rate.

The mid-market rate is the exchange rate that banks use to trade with one another. 

So, the AUD exchange rates you see online differ from customer rates, and the quotes you receive may vary.

It is vital to go to providers directly and get a genuine quote from them.

Use the ‘mid-market rate’ as a guide but genuine quotes from multiple providers will give you the best comparison.

For a live look at the current mid-market rate, you can use our Pound to Australian Dollar converter!

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Quick Summary 

1. Currency brokers are one of the best options for transferring large amounts to Australia and saving money on AUD exchange rates.
   

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2. Using your bank for small or large money transfers will incur higher fees and less favourable AUD exchange rates.
   

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3. Avoid exchanging your travel money for Australian Dollars at the airport.
   

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4. Always get genuine customer quotes from providers to compare the best available AUD exchange rates.

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Get a Free Quote

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Further Guidance & Tools

GBP to AUD Forecast

How to Transfer Money to Australia 

All-time highs and lows of GBP to AUD