How To Send Money From Overseas To Your USA Bank Account

7th December 2019

Perhaps you worked overseas for a bit, and you saved some money. Now, you need to send the money back home in the USA. Or maybe you are out traveling with your family, and you need to deposit some money on a flat or buy some furniture, and you need to send some cash before your first paycheck arrives. So how do you do it? How do you transfer money?

In this article, we will be looking at how to send money to your bank account in the USA from overseas as well as cheaper ways of doing a money transfer.

Here’s how each method works and when you should consider each option.

Ways To Send Money To Your Bank Account In The USA From Overseas

1. International Money Transfer Service

A lot of people end up milking the ATM when doing money transfers overseas, but this option could be too expensive. The best-proven way to transfer money is to use Money Transfer Services. These services are generally a much cheaper way of moving money overseas because of the lower exchange rates and fees.

International money services have bank accounts all over the world; you transfer locally, and these services do the international part of the transfer. Below are some examples of known online money transfer services that offer affordable fees.

  • Xe is a company that offers money service transfers charging 1.5% spread and no fees. The company can help you save your money with a worldwide currency network that allows the service to transfer money to any part of the world in bulk. The company then takes in a smaller margin and passes on the savings to you. Plus, when you open a free account in Xe, you get better exchange rates and fewer transfer fees.
  • Transferwise: Using Transferwise is another smart way of transferring money worldwide. The company offers services such as moving money as fast as possible with as little cost as possible. Using Transferwise is cheaper than going through the bank.
  • Currency Fair: This option is another fast, easy, and low-cost way to transfer money. Currency Fair’s smart platform reduces costs by up to eight times, and the small fee it charges is entirely transparent and fair. This means more savings for you, your family, your bills, and everything in between.


You’ll notice the massive difference in costs between the “milking the ATM” process and the cheapest money transfer services.

However, you must take into consideration that no matter what technique you use to move your money, you will end up paying a certain amount. Nobody’s going to move your money overseas for free. You end up paying the fees and the spread. The spread is the part that most people don’t check, and it’s by far the most expensive.

2. Peer To Peer Transfer Companies

Peer to peer (or P2P) transfer companies are similar to money transfer processes. The difference is that P2P transfer companies don’t physically transfer the money from one country to another.

To Understand How Peer To Peer Transfer Works, Consider This Scenario:

John is from Australia, and he just bought his dream home in California. From his current residence in Australia, he needs to transfer money to the US, requiring him to sell his Australian dollars and buy US dollars.

Conversely, Jenny is planning to move back to the US after working in Australia for the past couple of years. She’ll need to transfer money back to the US from Australia.

Peer to peer transfer matches John’s transmission to Jenny’s, which goes in the opposite direction—saving them money to cross borders. John and Jenny subsequently only pay a minimal fee to the tech platforms as gratitude for using the payment system primarily and reducing the cost of sending money overseas.

3. Money Remittance Companies

You may consider using a money remittance company when it comes to making small transfers to family and friends. Services like this often offer cash pickup, meaning you can send the money and the recipient can pick it up in minutes. Money remittance companies usually have maximum transfer sizes, so when making a small transfer of funds overseas, it is suggested to use such modes of money transfer. Cash remittance firms will be your only option if you want your receiver to pick up physical cash.

How Do These Companies Work?

Provided with the following options, and you know that the processes are different from using your bank, the question you might have in mind right now is how does this all work?

Below are the usual steps in doing money transfers using money remittance companies;

1 – Open An Account

You need to open an account with money remittance companies. Usually, doing this means going on a money transfer website, filling up your information, and submitting some photos or scans of ID documents. Most of the time, you need two pieces of ID, for instance, a passport or a driver’s license and proof of address, a recent utility bill, or anything with your name and your current address on it.

2 – Set up A Trade

Once your account is up and running, how do you move your money around? Well, you need to set up a trade.  You need to go on the service provider’s website and set up a deal. You do this by telling the system I want to move that much money from country A to bank account XYZ, in Country B. Once you have set up the trade, the system will give you important local bank detail information that you need to fill in for you to transfer the money.

3 – Pay The Fees And Make The Transfer.

The next step is to go on to your own bank’s website, the same site you used to check your balance, pay your bills, and do a local transfer to the money transfer service.

And that’s it!  All you have to do is wait for the money to show up at the other end.

Dos And Don’ts Of Money Transfer:

Money transfer should be easy and hassle-free—especially now that technology has made everything seamless, easy, and done in real-time.

Below are the do’s and don’t that you should consider while doing money transfers.

1. Don’t Be Blinded By Promises Of New Fees or Zero Fee Schemes.

The truth is that there are a lot of hidden fees, and often the lowest cost is the fixed price shown. While some banks do not reflect the actual fees you are paying on the receipt, you should be watchful and comfortable with both the secret and the apparent charges.

2. Don’t Forget The Exchange Rates You Get Offered Before You Transact

Keep in mind that over the inter-bank rate, the exchange rate you get should not surpass 2.5 percent. If you get a higher exchange rate than that, that’s a red flag already.

You don’t want your hard-earned money to just be funneled down and land on the hands of profit-hungry companies and platforms. Companies and platforms such as these are serious when they say they mean business. Yet, on the other hand, it is your money that we are taking into consideration here. You must choose companies and platforms that are not just reliable but one that cares about your money.

3. Do Explore Your Options

Even if in the last few years you’ve been using a money transfer system, a new generation of technology has rendered things even better. They’re easy to sign up, quick, safe, and save a lot of money for you. The key is knowing what’s possible.

4. Do Choose A Platform That’s Optimized For The Amount You’ll Send

For amounts less than $7,000 or 4,500 pounds, it’s hard to beat a peer-to-peer system that has easy online sign-ups, speedy transactions, and meager fees.

At amounts higher than $7,000, though, it was observed that programs that do not depend on a peer network tend to improve as their fee structure becomes more efficient. Knowable assistance for telephones is also vital as sums rise.

5. Do Know The Real Fees

Many people don’t know that the two banks will charge fees at either point–the sending point and the receiving end. Now you may think the money provider is unable to maximize such charges, but they can do so by having local bank accounts in the places where you send and receive money. Usually, the other fees consist of the fixed transfer fee and the offered exchange rate.

6. Do Choose A Service With Excellent Reviews

Upon analyzing the feedback of the best money transfer systems, it was discovered that the two main challenges facing users are getting signed up and the cash being temporarily lost in some specific circumstances. These situations are rare, but they can happen. The key here is to choose a service with excellent support for the customer, so you can quickly solve any problems.


If you are having problems transferring money overseas to family, friends, or paying bills from the other side of the world, the good news for you is, there are several ways to do that. With some upfront research on the different options available, money transfer services will assist you with making your decision. Some points to consider are the currency exchange rate, how will the money be received in another country, you want it deposited or collected in person, how long will the money take to get there, how much will it cost, and things like that.   

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