WorldRemit
There may be times in your life when you will be receiving money from overseas. Be it from friends or family, or maybe you are an expat living abroad. With the right tools at your disposal, you can find the best deal and have quick access to your funds when you receive a money transfer from overseas.
The best way to receive money from overseas depends on your specific situation. For many, receiving the money to their bank through an international wire transfer is the most convenient – even if it can be expensive. However, you will find it is often cheaper to use a money transfer service instead. These types of companies specialise in sending money overseas, and offer lower fees and stronger exchange rates than banks.
We’ve listed the best ways to receive money from overseas – going from cheapest to most expensive:
As typically one of the cheapest options when it comes to receiving money from abroad, you can save yourself more money by comparing money transfer services.
The process may differ depending on the service provider used to send the funds. With some money transfer services, you need to request the transaction reference number from the sender and present the number along with your identification documents. You may also be required to fill out a receive form to access your funds.
With online transfers, the funds are deposited into your account, after which you can withdraw them. You can also receive funds through a prepaid card or mobile wallet.
Keep in mind, in order to receive money from overseas, you’ll need to provide specific bank details, including:
While most fees are incurred by the sender, your bank may charge a fee for processing and depositing the money you have received from overseas.
It is also worth keeping in mind you could be required to pay intermediary fees. Intermediary banks act as the ‘middleman’ through which money passes when transferring between two financial institutions. As a result they take a small fee from the funds being transferred. This is separate to the fees charged by banks or money transfer services.
The amount you receive in the end may be less than expected if the sender doesn’t pay the currency exchange rate at the beginning of the transaction.
Most banks and money transfer providers will quote an exchange rate that’s higher than the mid-market rate, otherwise known as the midpoint between the buy and sell prices. This markup is also known as a margin, which is how these companies make profit.
The exchange rate margin is often the reason why there is a difference between the amount that is sent and the amount that is received. Small differences can put a big dent in the end amount, especially when receiving larger amounts of money.
Money transfers come in many varieties, all of which can be used to receive money from overseas. Here are some of your options:
Paysend offers transfers to more than 70 countries through its app and online service.
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The CRA won’t hit you with taxes for receiving funds from overseas—as long as it’s a gift.
Hi I am currently working in California for 3months my pay will go into a western union acct can someone in Australia open an acct for me? And can I then transfer it to a.n.z. or commonwealth acct? As I don’t want to fly home with a bit of cash
Thanks
Hi Leonie,
Thanks for your question.
You can set it up so someone in Australia can pick up the cash for you at a Western Union kiosk and then they can deposit it into your bank for you.
Alternatively, you may want to consider an international money transfer service and have the funds directly deposited into your bank account here in Australia, this eliminates the need for someone to pick up the cash.
I hope this has helped.
Hi. Do you have a physical office in Thailand ?
Hi smngrffth,
Thanks for your question.
Since finder.com is an Australian third party comparison service, we don’t have any offices in Thailand.
Western Union has a number of kiosks available in Thailand.
Hi i am moving back to melbourne, and i will have a large sum of money transfering back to australia(over a mil AUD). so i dont trust these small transfer bank. So which is the best rate for bank? st george, westpac, commonwealth, or anz? thanks.
Hi Michael,
Thanks for your question.
Please note that the international money transfer services that we list are regulated in Australia by ASIC under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 and is regulated by the Australian Transaction Reports and Analysis Centre ‘AUSTRAC’.
The exchange rates will depend on the currency you’re transferring from, so we’re unable to tell you immediately which bank is “best”. Please compare St.George rates here, and CBA rates here and ANZ rates.
Hi,
In order to receive funds from my U.S. e-trade account into australia, e-trade in the US can only transfer funds to a bank account that is in my name. The issue with this is that aussie banks offer poor exchange rates when receiving these funds.
How can I receive funds from e-trade at more competitive exchange rates?
Regards
Colin
Hi Colin,
Thanks for your question.
If you want to earn a more competitive exchange rate, you could use a cash account that earns a competitive interest rate. The rate is more competitive depending on the amount you wish to deposit. Visit https://invest.etrade.com.au/InvestmentProducts/Cash/Default.aspx to find out more.
I hope this helps,
Harry
An American friend is about to send me some money. She will send US dollars, can I receive it in US dollars as we are about to go overseas and will need US dollars.
Hi Theresa,
Thanks for your question.
If your American friend sends money to your Australian bank account, the funds will automatically exchange to AUD as your bank account can only hold AUD.
You may want to consider a multi-currency account – or asking your friend to hold the money in USD cash.
Hope this helps.