The cheapest way depends on where you're sending and how much

There is no single cheapest method for all international transfers. A wire through your bank might cost $15 to $50 but arrive in one to three business days. A money transfer service like Western Union or MoneyGram charges 3 to 8 percent of the amount but delivers cash in minutes. A peer-to-peer app like Wise or OFX charges 1 to 2 percent but works best for larger amounts. The lowest-fee option for you depends on three things: the destination country, the amount you're sending, and how fast it needs to arrive.

For amounts under $300 going to countries with many physical agent locations (Mexico, Philippines, Guatemala, Dominican Republic), a cash pickup service often costs less than a bank wire. For amounts over $500 going to countries with strong banking infrastructure, a specialist money transfer service or your bank's online international transfer usually wins. For regular monthly sends to the same person, a peer-to-peer app with a locked-in exchange rate can save hundreds per year.

Key Takeaways

  • Bank wires cost $15 to $50 per transfer but have the worst exchange rates; use them only if the recipient's bank requires a wire.
  • Cash pickup services (Western Union, MoneyGram, Ria) charge 3 to 8 percent but work in most countries and deliver same-day.
  • Peer-to-peer apps (Wise, OFX, Remitly) charge 1 to 2 percent and have better exchange rates, but require both sender and recipient to have bank accounts.
  • Always compare the total cost—fee plus exchange rate markup—not the fee alone, because a low fee with a bad rate can cost more than a higher fee with a good rate.
  • The recipient's location and access to banking determine which method is actually available to them, so confirm before you send.

How bank wires work and when they cost the most

A bank wire is a direct transfer from your bank account to the recipient's bank account. Your bank charges a fee (typically $15 to $50 for international wires), and the receiving bank may charge a fee as well (another $10 to $25). The transfer usually takes one to three business days. The exchange rate your bank uses is often 2 to 4 percent worse than the mid-market rate, meaning you lose money on the conversion itself.

Use a bank wire only if the recipient's bank requires one—some employers or government agencies will not accept money any other way. If you have a choice, a wire is almost always the most expensive option. A $500 wire to Mexico might cost you $35 in fees plus $20 in exchange rate markup, totaling $55 in costs. The same $500 through a cash pickup service would cost $25 to $40.

Cash pickup services: fast but with higher percentage fees

Western Union, MoneyGram, and Ria Money Transfer let you send cash that the recipient picks up at a physical location—no bank account needed on either end. You pay a fee based on the amount and destination (typically 3 to 8 percent), and the money is usually available within minutes to a few hours. The exchange rate is usually 1 to 3 percent worse than mid-market.

These services work well for amounts under $500 and for countries where bank access is limited. If you're sending $200 to Guatemala, Western Union might charge $12 to $16 (6 to 8 percent), and the money arrives same-day. A bank wire would cost $35 to $50 plus a worse exchange rate. For larger amounts, the percentage fee becomes expensive: a $1,000 transfer at 5 percent costs $50 in fees alone.

The main trade-off is convenience for the recipient. They must travel to a pickup location during business hours and show ID. In rural areas, the nearest Western Union or MoneyGram might be far away. Ask your recipient whether they have straightforward access before you choose this method.

Peer-to-peer apps: lowest fees if both sides have bank accounts

Services like Wise, OFX, Remitly, and Xoom are designed for regular international transfers between people with bank accounts. They charge 1 to 2 percent of the amount plus a small fixed fee ($1 to $3), and they use real mid-market exchange rates with minimal markup. A $500 transfer might cost $7 to $12 total. The transfer usually takes one to three business days.

The catch is that both you and your recipient need a bank account—either a traditional bank or a mobile money account in countries where that's the standard (M-Pesa in Kenya, GCash in the Philippines). If your recipient doesn't have a bank account, these apps won't work. Some services like Remitly offer cash pickup in certain countries, but the fee goes up when you choose that option.

These apps are best for regular monthly or weekly sends to the same person. If you send $300 every month to a family member with a bank account, a peer-to-peer app saves you $30 to $50 per year compared to a cash pickup service. Over time, that adds up.

How to compare the true cost, not just the advertised fee

The fee you see advertised is only part of the cost. The exchange rate markup is the other part, and it's often larger. A service might advertise "no fee" but use an exchange rate 3 percent worse than the real rate. You end up paying 3 percent anyway, just hidden in the conversion.

To compare fairly, use this method: pick a specific amount you plan to send, go to each service's website, and enter that amount. Write down the total the recipient will receive in their local currency. The service that delivers the most money to your recipient is the cheapest, regardless of what the fee says.

For example, sending $500 to Mexico:

  • Bank wire: $35 fee + bad exchange rate = recipient gets 8,200 pesos
  • Western Union: 5 percent fee + exchange rate = recipient gets 8,350 pesos
  • Wise: 1.5 percent fee + real exchange rate = recipient gets 8,480 pesos

Wise delivers 280 more pesos to your family member, even though the fee is lower. That's the comparison that matters.

What to do if your recipient doesn't have a bank account

If the person you're sending to has no bank account and no access to mobile money, your options narrow. Cash pickup services are usually the only choice. Western Union and MoneyGram operate in nearly every country and don't require the recipient to have a bank account—they just need ID and the reference number you provide.

Before you send, confirm that your recipient has access to a pickup location. Call or ask them directly. In some rural areas, the nearest Western Union might be hours away. If that's the case, ask whether they can open a mobile money account (available through phone carriers in many countries) or a basic bank account. Some banks in developing countries offer accounts with no minimum balance specifically for receiving remittances.

If neither option works, a cash pickup service is your fallback, even though the fee is higher. It's better to pay 5 percent than to have no way to send money at all.

Avoiding scams and protecting your money

When you send money internationally, you lose the fraud protections that domestic transfers have. Once the money is picked up or transferred, it's gone. Use only established services: your own bank, Western Union, MoneyGram, Ria, Wise, OFX, or Remitly. Do not use unfamiliar apps or services you found through social media.

Never send money to someone you don't know or trust, even if they claim to be a friend or family member. Scammers pose as relatives in emergencies and ask for wire transfers. If someone you know asks for money via text or email, call them directly on a number you know is theirs and verify the request.

Keep your receipt and reference number. If something goes wrong, you'll need them to trace the transfer. Most services let you cancel within a short window (usually 10 minutes to a few hours) if you realize you made a mistake.

Frequently Asked Questions

Can I send money internationally from a prepaid card or check-cashing account?

Most peer-to-peer apps require a traditional bank account or a mobile money account. Western Union and MoneyGram accept cash payment in person at their locations, so you don't need a bank account to send. Some services like Remitly work with certain prepaid cards, but not all. Check the service's website or call before you go in.

What's the difference between mid-market rate and the rate I actually get?

The mid-market rate is the real exchange rate you see on financial news sites. Banks and transfer services use rates 1 to 4 percent worse than that because they make money on the difference. Wise and OFX advertise that they use mid-market rates, which is why their total cost is often lower even though the fee looks small.

How long does an international transfer actually take?

Cash pickup is fastest: minutes to a few hours. Bank wires and peer-to-peer apps usually take one to three business days. The time depends on the destination country's banking system and whether the transfer happens on a weekend or holiday. Always tell your recipient to expect three business days, even if it arrives faster.

Is it cheaper to send one large amount or multiple small amounts?

One large amount is almost always cheaper. A $500 transfer costs less in total fees than five $100 transfers. If you're sending regularly, ask your recipient whether they can wait for a larger monthly send instead of weekly small ones. You'll save money on fees.

What happens if I send money to the wrong person or account?

If the money was picked up as cash, it's gone—you cannot get it back. If it went to a bank account, contact the service when ready and ask them to reverse it. They may be able to recover it if the recipient hasn't withdrawn it yet, but there's no may provide. This is why you should always double-check the recipient's details before you send.