How much will my money transfer recipient receive? | finder.com
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A $1,000 money transfer journey

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How much money will my recipient receive?

When you send an international money transfer, your loved one will never receive the full amount that you send – from fees to the exchange rate, your transfer will incur losses along the way (and your service provider will profit). Depending on the method you choose to transfer, the amount your recipient could receive can vary.

Basically – all transfer methods are not created equal. Let’s compare three options for sending money and see how each differs.

Where will I lose money?

You’re at risk of losing money in two main steps:

  1. The transaction fee to send your money.
  2. The transfer service’s exchange rate.

These are the two areas where the vast majority of money transfer services will take money from you. You may encounter other fees, but they’re not universal.

Calculations

Bank transfer

    • Start with $1,000.
    • An outgoing international wire transfer costs $50.
      • $1,000 – $50 = $950
    • There’s a 4% spread between the mid-market rate and the bank’s exchange rate, so we lose $38.
      • $950 x 0.04 = $38
      • $950 – $38 = $912
    • There’s a receiving fee of $50 that your recipient’s bank will charge when they accept your money into their bank account.
      • $912 – $50 = $862
  • Your recipient gets $862.
  • Total loss = $138

Foreign money transfer service

    • Start with $1,000.
    • The transfer fee is $5.
      • $1,000 – $5 = $995
    • There’s a 0.5% spread between the mid-market rate and the FMT service rate, so we lose $5.
      • $995 * 0.005 = $4.975 (We’ll round to $5.)
      • $995 – $5 = $990
  • Your recipient gets $990.
  • Total loss = $10

Cash transfer

    • Start with $1,000.
    • The fee for an in-person transfer is $7.
      • $1,000 – $7 = $993
    • There’s a 3% spread between the mid-market rate and the cash-transfer service exchange rate, so we lose $30.
      • $993 x 0.03 = $29.79 → Round to $30
      • $993 – $30 = $963
  • Your recipient gets $963.
  • Total loss = $37

Bottom line

As you can see, Option 2, or independent money transfer service, takes a mere $10 out of the transaction, compared to $37 with a cash pickup service and a whopping $138 from a bank-to-bank transfer.

Compare your international money transfer options

Use our comparison calculator to weigh the fees, exchange rates and other details of transfer services to find the best value.

I want to send

to

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
USD 0 3 - 5 days USD 0.00 19.872 MXN 99,362 Transfer up to $500,000 with no minimums and no fees. Go to site Show details
USD 1,000 1 day USD 0.00 19.862 MXN 99,312 No maximum limit, no fees and competitive exchange rates for 100+ currencies. Go to site Show details
USD 1 1 - 2 days USD 7.00 19.883 MXN
99,273
Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks. Go to site Show details
USD 1 Within an hour USD 3.99 19.842 MXN 99,133 Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.
Go to site Show details
1 - 2 days USD 0.00 19.822 MXN 99,112 Get live quotes on exchange rates and take advantage of no transaction fees with no limits on transfers. Go to site Show details

Compare up to 4 providers

Other fees

Will the receiving bank always assess a fee?

This depends on the bank you’re sending money to. US banks typically charge for receiving international transfers — often $15 to $30. In some countries, such as France, many multinational chains don’t charge receiving fees, while smaller banks may.

Ultimately, you’ll want to contact your recipient’s bank and ask about receiving fees.

Will I have to pay any other fees?

Your bank may not have a direct relationship with the bank you’re transferring money to. In that case, you could pay intermediary fees when your money is sent through other banks. Contact your bank to find out if you’ll need to pay intermediary fees.

Are there account opening fees?

You won’t typically see account opening fees with a money transfer service, cash transfer services or bank. However, a bank may require a minimum deposit or charge a monthly fee if your account has less than a certain amount.

For example:

  • Bank of America requires a $300 minimum daily balance; otherwise, it charges a $5 monthly fee.
  • Chase requires a $300 minimum daily balance; otherwise, it charges a $5 monthly fee.
  • Wells Fargo requires both a $25 minimum opening deposit and a $300 minimum daily balance; otherwise, it charges a $5 monthly fee.

As with any service, take the time to compare all of your options before choosing one that is right for your needs.

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Important Information*
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US International Money Transfers Offers

Important Information*
XE Money Transfer

Transfer up to $500,000 with no minimums and no fees.

WorldRemit International Money Transfers

Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

World First

No maximum limit, no fees and competitive exchange rates for 100+ currencies.

TransferWise

Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

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