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Xoom money transfer review

Learn how this PayPal-owned company can help you move money around the world.

Our Verdict

Xoom is PayPal’s answer to global money transfers and an easy next step if you already have a PayPal account. Depending on the country, you can even choose how your funds reach your recipient, be it bank account, debit card, cash pick up or even straight to their home. This is what makes Xoom hugely convenient.

However, what you gain in ease is lost on costs as you’ll be saddled with Xoom’s poor exchange rates and additional transfer fees. And these costs vary widely between currencies and where you’re based. All in all, Xoom seems much less appealing when compared to other specialist transfer services.

Why should I consider Xoom?

  • Money-back guarantee. Xoom offers a money-back guarantee to refund your transaction in full if the money you send doesn’t arrive at your recipient.
  • Multiple transfer options. You can choose between sending funds via a bank transfer, sending cash for pickup or having cash delivered directly to your recipient’s door.
  • Transfer tracking. You’ll receive a text message when your money arrives. Xoom will also email you and your recipient to keep you both informed of the transfer’s progress. You can also log into your account to track your transaction, or call customers service and receive an update from a live representative.
  • 24/7 support. Phone and email support is available 24 hours a day, seven days a week if you need help with a transaction.

What to be aware of

  • Requires government-issued ID. You’ll need to upload a government-issued ID, like a license or passport, and a recent bank statement to send money for the first time.
  • Transfer limits. Xoom has limits in place for how much you can send. It operates on three different levels, with customers required to provide additional information if they want to send larger amounts.
  • Exchange rate markup and fees. Xoom adds markup on the mid-market rate and charges additional fees.

How much are Xoom’s fees?

Xoom’s fees depend on what type of transfer you are making and how you plan to pay for your transfer. Here’s a roundup of some of the factors that could impact how much you have to pay:

  • Payment. Paying by bank transfer is the cheapest option while paying by credit card will have higher fees. Additional cash advance fees may also be charged to your credit card.
  • Recipient’s location. Where you are sending funds will also affect the fees you are charged.
  • Amount. Different fees are charged based on how much you’re sending.
  • Delivery. To send cash, fees are generally higher, while receiving money to a bank account is often less expensive.

Here’s an example of Xoom fees you might see while sending $1,000 to Mexico or India, accurate of as March 1, 2022.

DestinationPayment methodFee
MexicoPayPal balance or bank account$0
MexicoCredit or debit card$3.99
IndiaPayPal balance or bank account$0
IndiaCredit or debit card$30.49

You can use Xoom’s Fees and Exchange Rate Calculator to see the fees that apply to your transfer destination and amount.

How are Xoom’s exchange rates?

The exchange rate offered by Xoom may change depending on the amount of money you’re sending. Here are the rates when we checked on March 1, 2022 for sending USD to INR through Xoom:

Sending amountXoom rateMid-market rateMarkup
$10 – $5073.445675.592.92%
$51 – $1,98974.194075.591.88%
$1,990 – $1,99974.270175.591.78%
$2,000 – $9,99974.643275.591.27%

As we have done above, it is best to compare the displayed rate on Xoom with the current mid-market rate to work out the size of the margin charged. You can also then use the interbank rate as a benchmark for comparing rates of other money transfer providers.

What are the ways I can send money abroad with Xoom?

Xoom has three ways you can send money abroad, including cash pickup options which means your beneficiary could receive their funds almost instantly.

  • Bank deposit. You can send money to bank accounts in more than 150 countries and territories worldwide.
  • Cash pickup. Send your funds as a cash pickup at thousands of partner locations around the world.
  • Doorstep delivery. Xoom also allows you to have cash delivered directly to your recipient’s door.

How to send money transfer with Xoom

Before you can send funds with Xoom, you must register for a free account with your personal contact information. While you don’t need to enter a Social Security number at sign-up, Xoom does require you to upload a government-issued ID, like a license or passport, and a recent bank statement if you want to send higher amounts.

What are Xoom’s payment options?

Xoom transfers can be paid for in a few different ways when sending from the United States, including:

  • Bank account transfer
  • Credit or debit card
  • PayPal balance

Each payment method may have different fees depending on your sending destination, but overall paying with a bank account or PayPal balance tends to be the cheapest option.

How long does an international transfer with Xoom take?

Transfer times depend on how you pay and how the money is received:

Fastest option – nearly instant

While you may pay more in fees when you use a credit or debit card to pay for your transaction, your money should arrive in as little as 15 minutes, if not instantly. Just keep in mind, some destinations may take longer to receive money, even when paying by credit or debit card.

Cheapest option – up to 4 business days

Using a bank account to pay for your transfer is often the cheapest way to send money, but it’s the slowest. It can take up to 4 business days for your money to arrive.

Transfers typically takeClock icon for transfer speed

1-4 days

What are Xoom’s sending limits?

Xoom separates accounts into three levels based on how much verification you’ve given. For US residents, it looks like:

Level24-hour limit30-day limit180-day limitRequired information and documents
12,999 USD6,000 USD9,999 USDEmail and phone number
210,000 USD20,000 USD30,000 USDSocial Security number or passport
350,000 USD60,000 USD100,000 USD
  • Driver’s license, passport, or Green Card to verify your identity
  • Utility bill or another proof of address, either a bank statement or a pay stub
  • Plus additional information at Xoom’s request

    Is Xoom safe?

    Xoom’s parent company, PayPal, is one of the most well-known payment systems. Xoom has additional measures to protect your money while using the service:

    • Encryption: Xoom uses 128-bit data security encryption for its entire website.
    • Regulation: Xoom shares all the same regulations and licenses held by PayPal.
    • Money-back guarantee: Xoom guarantees that your money will be received by your recipient, and if it isn’t the transaction will be refunded in full.

    How does Xoom compare to other money transfer services?

    If you want to see how Xoom compares to the exchange rates and fees offered by other money transfer services, enter the details of your transaction into the table below.

    1 - 12 of 12
    Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
    Wise (TransferWise)
    Within minutes
    From 0.41%
    Wise uses the mid-market rate and transparent fees to help you send money in 50+ currencies.
    Cash App
    Within minutes
    From $0
    With this peer-to-peer payment app make payments to your friends and family with no transfer fees within the US or from the US to the UK or EU.
    24 hours
    From 0%
    New Instarem customers will get a special FX rate and zero-fees on their first transfer.
    Instarem offers offers rewards on every transaction.
    Within minutes
    From $0
    MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
    OFX International Money Transfers (Business)
    24 hours
    Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
    CurrencyTransfer for Business
    24 hours
    Increase business efficiency with zero transaction fees and same-day transfers.
    24 hours
    OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
    Xe Money Transfer for Business
    24 hours
    Save your time and money with Xe Money Transfer for business.
    Currencies Direct (business)
    24 hours
    Minimizes costs of international transactions and offers custom solutions for business clients. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
    Within minutes
    Xe has fast transfers with low fees and a range of foreign currency tools.
    24 hours
    CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
    Currencies Direct
    24 hours
    CurrenciesDirect makes transferring money abroad simple with bank-beating exchange rates. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.

    Frequently asked questions