Send Money to the USA: Easiest Methods and Essential Tips

Most use money transfer providers to send money from the United States due to low costs and high transfer speed, but that’s just one method among many. Below you can find how ways of sending money internationally compare.

Money Transfer Services

The most popular way of sending funds to the USA is via international money transfer services. These platforms primarily focus on providing online transactions. They only require an internet connection and offer straightforward registration. The leading providers include WorldRemit, Remitly, and XE Money Transfer.

Using MTPs allows sending money to the United States within minutes. The websites are easy to use, and many platforms also have mobile apps.

Fees depend on the chosen service, but the general rule is that online money transfers are far more affordable than banks and other alternatives. You can use many payment methods, ranging from debit and credit cards to bank transfers and even paying in stores.

Wire Transfers

Although they are still around, few people still use wire transfers. It's because they require more effort from the sender, and they come with higher fees than international money transfer services.

It could take several days to finalize wire transfers, so this isn't the best choice for the receiver either. Unless this is the only option available in your location, it's best to go with money transfer platforms instead.

Bank Account Transfers

The classic bank account transfer means you move funds from your bank to the receiver's bank in the United States. TD Bank, Capital One, and other major financial institutions in the USA support international transfers.

While the process is reasonably fast, you still need to fill out some forms and require the receiver's info about their bank and account in that facility. The fees might be imposed by the sending and receiving bank, and the exchange rates could be unfavorable. It's better to go with international money transfers, especially since they support bank account deposits and delivery.

Challenger Banks

Chime and Revolut are some examples of challenger banks that are available in the United States. These outfits usually offer limited digital banking services and feature a sleek mobile app.

Though they are typically cheaper than legacy banks due to lower overhead costs, most don't offer tempting conditions for international money transfers. You could end up waiting for days and paying hefty fees. MTPs are faster, simpler, and more affordable, making them a logical alternative.

Mobile Apps and Payment Services

The major mobile payment services like Venmo or Zelle don’t support international transfers – nor do mobile wallets like Apple Pay or Google Pay.

For those who prioritize making transfers while on the go, money transfer providers typically offer a dedicated mobile application. More often than not, the conditions are identical like when using websites, except the interface tends to be more user-friendly with an app.

PayPal

The US-based company has been around for over two decades and has become a household name by pioneering simplified and high-speed money transfers – all packed up in an attractive interface.

Without a doubt, the biggest downside to PayPal is the hefty fees. Charges on international payments can go as high as 5% on top of high currency conversion fees, making the service less than competitive when compared to specialized money transfer providers.

Money Transfers to a Pickup Location

Some money transfer providers, both legacy agencies like Western Union and newer outfits like Xoom, allow cash transfers to be picked up from agent locations at the desired location. Depending on the service, you may be able to initiate the transfer online, or simply pay in-store.

There may be additional charges associated with cash pickups and may end up being costlier than online-only MTP transfers, yet the method is considered to be among the fastest ways to send money from the USA.

International Money Orders

International paper money order services are available through the US Postal Service. The company has partnerships with 25+ countries, making it possible to send and receive funds from abroad. Depending on your location, Moneygram and Western Union could also be a way to use international money orders.

Due to high transfer costs, the partner countries being limited to the South American region, and the rise of MTPs, money orders are getting less popular over time.

What Do You Need to Send Money to USA?

After choosing the most suitable MTP, you might need to provide the following documents:

• Verifying your ID. Most money transfer services require providing a government-issued valid ID to confirm your identity.

• Recipient details. Apart from the receiver's name, you might need their bank account number, SWIFT code, or other info depending on the chosen delivery method.

• Proof of money. If you are sending large sums, the provider might ask for proof of origin. It could include a salary statement or any other document that confirms how you got the money.

Due to the abundance of transfer providers, you are likely to find a method of receiving money suitable for your specific needs.

Location Pick Up

Most money transfer platforms, such as Western Union or Ria, have branches spread throughout the United States. Agent locations are usually found in abundance in city centers, whereas recipients in remote areas may struggle to find a close one.

Cash collections are usually settled within minutes of depositing – barring the time it takes to travel to the pick up point, it can be one of the fastest ways to receive money in the United States.

Direct Bank Deposits

These involve sending funds directly to the recipient’s bank account. It’s the most convenient way to receive money as the funds will be readily available without the recipient having to collect anything or set up an account with a mobile wallet. Almost every money transfer provider has the option to deposit money directly into a bank account.

What Do You Need to Receive Money in the United States?

As for the documents the receiver might need to collect the money, they include the following:

• Valid ID. Depending on the form of deposit, the recipient may have to provide a government-issued photo ID to collect their transfer.

• Transaction identification. Money transfer providers often require an associated transfer code to collect money at a pickup point.

• Bank account and other details. The receiver should provide the details of the bank account where they want the money to be delivered.

Remitly doesn't only offer a clear cost overview with no hidden charges – it also has a simple pricing system that changes marginally depending on the transfer sum, and the company works with major banks like Wells Fargo and Capital One. If you need any assistance, customer service is available around the clock.

3 Steps to Start Using the Provider

1. Head to Remitly’s website.

2. Sign up for an account and set the transaction parameters.

3. Finalize the transfer and monitor its progress from your profile.

Best Alternatives

• WorldRemit, Currencies Direct, Wise

You can send money from dozens of different countries to the United States via WorldRemit. You can use the in-built calculator to see the rates and breakdown of costs without registering. Bank transfers are usually the slowest form of payment, but WorldRemit reports that 90% of transfers to US bank accounts arrive within the same day.

3 Steps to Start Using the Provider

1. Head to WorldRemit and pick the sending and receiving currencies.

2. Check the rates and if you are okay with them, set up an account.

3. Choose your payment method and finalize your transfer.

Best Alternatives

• Western Union, Remitly, PayPal

With over 120,000 active users, XE is among the most reputable providers. Senders across Europe can choose from a variety of payment methods when transferring funds to the USA and benefit from XE’s long-established currency conversion calculator when comparing rates. Free Android and iOS apps are also available.

3 Steps to Start Using the Provider

1. Head to XE’s website and enter your transfer details.

2. Compare the rates for your transfers with the mid-market rate, which you can view on the convert tab.

3. Register for an account and finalize the transaction.

Best Alternatives

• Wise, Western Union, Instarem

MTPs offer near-instantaneous servicefor transfers involving popular currencies like USD – if you can identify the right outfit. The table below displays the platforms known for fast transfers to the USA.

It’s worth noting that fast deliveries might involve additional charges, so make sure you understand all the costs involved. The services mentioned above have clear pricing and no hidden charges. It’s also possible to track transfers in real-time to be certain when they reach the destination.

From transfer fees to exchange markup rates, many factors affect the total transfer charge – considering the overall cost, MTPs are usually the cheapest way to send money to the USA. The table below shows the service providers with the lowest associated costs.

The fees don't vary only depending on the platform but also on the payment method used. Credit cards tend to be the most expensive, while bank transfers are the cheapest method. The speed depends on the method and transfer type – faster transactions might come with additional charges. You can minimize your costs by finding the right combination suitable for your needs.

All the providers listed across Moneyzine are licensed by relevant regulatory bodies. As per these regulations, most platforms safeguard client monies by segregating accounts for user funds and business assets.

For wary customers, it’s possible to find platforms that do more than honor regulations to make customers feel safe. Here are some platforms that apply extra security features when sending money to the USA.

Running a transparent business and revealing your financial reports is a necessity to gain customer trust and signal credibility. Additionally, having detailed information on how to protect yourself from scams and helpful customer support is always a plus.

International money transfer platforms usually come with mobile-optimized sites or dedicated applications – some products are sleek enough to compete with that of PayPal. The table below includes MTPs with top-rated apps for those who prioritize sending out transfers while on the go.

Most platforms are available for both iOS and Android users, and more often than not, feature all the services included in the platform’s webstation.

The United States has a complex system of regulating financial markets and institutions. Notable regulatory bodies include:

• The Federal Reserve System, mostly referred to as the FED, regulates banks and non-banking financial institutions. The USA has a central bank that manages monetary policy and oversees the financial system.

• Office of the Comptroller of the Currency charters and regulates the national banks, as well as their subsidiaries, and federal saving associations.

• The Internal Revenue Service is in charge of overseeing tax collection and applying related laws.

The sum you are sending is important for two reasons:

I. Reporting to applicable authorities. The recipient in the USA must report transfers exceeding USD 10,000 to the IRS. As the sender, you should investigate whether the country you are making the transfer from has similar rules and regulations.

II. Changing costs. Some money transfer platforms increase their fees with the sum sent, while others lower it, and Some providers may impose daily and monthly transfer limits. Sending very large amounts might also require going through additional verification processes.

Money transfer providers could charge you in two different ways:

I. Transfer and service fees. MTP might impose fees for each transaction. Other charges could include processing fees for some payment methods.

II. Margin. Almost every provider adds a margin on the mid-market exchange rate to cover the risks associated with currency conversion or to charge for their services. No-fee providers specifically may keep this quite high.

Some platforms adjust fees based on the sum you send, or may offer newcomer benefits and reward programs that secure discounts.

Birthdays, anniversaries, and other gifts make up the most frequent transfers from abroad to the USA. There's no foreign gift tax in the USA, but it's best for the receiver to check with a local tax expert, especially for larger amounts.

Other types of transfers like buying a property, paying for tuition, or for business purposes are subject to different regulations, and it is possible to find providers specializing in that area.

The basic safety rule involves checking if the chosen money transfer platform has licenses from relevant financial authorities.

Additional security features are important since cybercrime has become a serious issue. The majority of reputable platforms usually have industry-standard cybersecurity measures in place to encrypt transactions and client data. When in doubt, you can investigate their website or simply send an inquiry about it.

The local authorities impose taxes on individuals for their worldwide income. As the sender from another country, you won't have to pay any taxes in the United States. But the receiver may be subject to the personal income tax.

The PI tax has different brackets and varies from 10% to 37%. It's necessary to report income and pay relevant taxes, or the receiver risks fines and other legal consequences.