Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
Money Transfer Finder: Compare international money transfer services
Get the best rates and fees when you send money abroad.
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There are more foreign exchange services than ever before and they can help you send money overseas in minutes. Whether you need to send money back home to South Africa or pay an employee based in another country, specialist international money transfer companies can often give you a better deal than your bank.
Send money internationally with WorldRemit
An online money transfer service with cash pickup, bank account to bank account and airtime transfers available.
- No minimum transfer amount
- Large range of destinations
- Competitive exchange rate
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What's in this guide?
What is an international money transfer?
An international money transfer allows you to send money from South Africa to a recipient in another country. You provide funds and your recipient’s details to a bank or an independent transfer provider, which exchanges the money into your desired currency and then sends the money abroad to your recipient.
Depending on the provider, a transfer can be done in person, over the phone, through a mobile app or online. Again, depending on the provider, you can use cash, a credit or debit card, or transfer funds from your bank account. Then, the funds will either be deposited into your recipient’s bank account or mobile wallet, or made available as cash for them to pick up at a location in their country. Delivery of the funds varies from provider to provider.
How do money transfers work?
The following steps give a good example of a typical transfer using an online money transfer company in South Africa.
- Register online with the transfer service of your choice.
- Input transaction details, including the amount you want to transfer and who you want to send it to. You’ll also need to provide a reason for your transfer.
- Get approved by the transfer company. You’ll need to provide proof of ID for the first transaction.
- Transfer funds through your bank using the account details from your transfer company.
- Your transfer service will deposit your funds in your destination account.
If you use a company that offers cash pickup transfers from South Africa, you’ll need to complete these steps.
- Visit your nearest branch or agent of the cash transfer company.
- Provide proof of ID and proof of your address.
- Provide your recipient’s details and a reason for your transfer.
- Pay for your transaction and send a copy of the transaction reference number to your recipient.
- The funds will be ready for your recipient to collect from their nearest cash pickup location within minutes.
If you choose to use a bank to carry out your transfer, the process is a little different.
- You will need to have a bank account and be able to send money online with your current bank.
- You’ll need to provide your recipient’s name and account details, including their bank’s SWIFT/BIC code or their account’s IBAN.
- Once you’ve submitted a transfer request, it usually takes 2-5 business days for the transaction to be completed.
How much will a money transfer cost?
There are two ways that a provider makes money on your transfer. The obvious one is the transaction fee. But the sneakier one is what your bank or transfer service marks up on the exchange rate.
Fees
Most providers either charge a set fee per transaction or they charge a percentage of your total transfer amount. To save on fees, keep an eye out for special deals.
Some providers offer first transfer free deals for new customers and promo codes so you can get discounts on your second and third transfers. But even with these fees, you’ll find that using a company that specialises in international money transfers is far cheaper than bank-to-bank telegraphic transfers.
Keep in mind that a lower fee doesn’t necessarily translate to the biggest savings. A lower fee might be accompanied by a poor exchange rate, negating any savings from the minimal fee.
Exchange Rate
The exchange rate determines how much one country’s currency is worth in another currency. Most countries’ exchange rates are flexible, which means it can change from moment to moment. Factors that influence the exchange rate include interest rates, economic stability and inflation.
Most transfer services will advertise the real exchange rate, or “mid-market rate” — the mid-point between the buy and sell prices of two currencies on the global market. But when it comes time to make your transfer, you’ll notice you almost never get this rate. The provider will mark up the exchange rate — and pocket the difference.
Using a provider that offers the most competitive exchange rate could save you hundreds or even thousands of rands on your transaction.
Tips for saving on your international transfer
There’s no one best way to transfer funds overseas from South Africa. It depends on how much you’re sending, how soon you need it to be made available and the exchange rates at the time. Below are a few tips you can use when sending money overseas.
- Know the mid-market rate. Check the current mid-market rate for the transfer you want to make, such as ZAR to USD. This rate is the midpoint between worldwide supply and demand for that currency — and the rate banks and transfer services use when they trade among themselves. Use it as a baseline to compare against the rates you’re being offered. The company that’s closest is offering you the best rate.
- Send more money per transfer. Some services discount the fees or waive them altogether when you send larger transfers.
- Use forward contracts and limit orders if sending money regularly. A forward contract allows you to lock in a favourable exchange rate for future transfers. This means you avoid unpredictable movements in exchange rates. A limit order allows you to wait until a favourable exchange rate is found, and then lock it in for your transfer.
- Shop around. Don’t just send money overseas with the first transfer service you find. Compare the fees, exchange rates and features of a number of different companies to find the best deal.
- Avoid urgent transfers. While cash transfers allow you to send money overseas from South Africa within minutes, they can also be expensive. Using an online transfer service that lets you send funds to your recipient’s bank account will take longer, but it’ll also usually be cheaper.
Let’s crunch the numbers: Sending R1,500 to Kenya
Alex wants to help his family in Kenya pay some overdue bills. He initially planned to transfer R1,500 through his local bank, but he’s decided to compare his bank to an independent service to see what his best option is.
| Bank transfer | Money transfer service | |
|---|---|---|
| Exchange rate | 1 ZAR = 5.70 KES | 1 ZAR = 5.95 KES |
| Transfer fee | R250 | R68.50 |
| Processing time | 2 business days | 2 business days |
| Amount received in KES | KES7,125 | KES8,517.43 |
Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
Business or personal transfers?
Consider the purpose of your transfer. Are you sending money to friends and family overseas, or are you a business looking to pay for goods and services, potentially regularly?
For business owners, time is the greatest commodity. Without time to research your options, you may end up going with your bank. But a little planning and research can set you up for significant savings on your transfers. For example, if you send transfers of R5,000 every week, even if you only save R100 each time, that’s a saving of R5,200 a year simply by choosing a competitive transfer service over your bank.
Instant cash transfers
Many online money transfer providers allow you to send and receive cash almost instantly, whereas bank-to-bank transfers can take a few days to clear. If you need to send a same-day or emergency transfer from South Africa, there are providers that allow your recipient to pick up cash quickly, often within an hour.
These larger payment networks allow for nearly instant transfers with cash pickup:
How do I compare international money transfer providers?
Exchange rates
This is the rate at which your South African rand will be converted to your target currency. The closer the exchange rate you’re quoted is to the current mid-market rate — the exchange rate between ZAR and the currency you’re sending to — the better value for money you’ll get. Compare the total cost of your transfer (including fees) to make sure you’re getting the best deal.
Fees
Your bank or transfer provider will usually charge a fee for making a transfer. Fees can vary widely depending on who you’re transferring with.
Generally, fees come in the form of a flat fee or a percentage of your transaction (such as 3% of your transfer amount).
Transfer options
Independent transfer services offer competitive exchange rates and fees. If you want to send and receive cash right away, compare options like WorldRemit, MoneyGram and Western Union. Some online transfer services also allow you to send money to your recipient’s bank account or top up their mobile airtime. Bank-to-bank transfers are safe and convenient but typically not your cheapest or fastest option. Depending on your recipient, you may need to compare options for sending money to someone who doesn’t have a bank account.
Amounts
The best method for transferring money might depend on how much you want to send. For example, if you’re making a large transfer, you may pay less in fees if you send the money with a service that charges a flat transaction fee rather than a percentage of the transfer amount. You should also be aware that many transfer companies impose minimum and maximum transfer limits.
Frequency & Purpose
Sending a one-time transfer differs from sending regular transfers — for example, regular transfers can be used to make overseas mortgage payments or send a portion of your weekly pay to family members. With a one-time transfer, you may put more weight on speed and flexibility in delivery, such as cash pickup. But if you’re sending recurring payments, you’ll want to set up regular transfers that can save you the most on rates and fees over the long term.
Speed
Sometimes there’s an emergency and a loved one needs funds quickly — and in cash. Thankfully there are global money transfer providers with hundreds of thousands of worldwide agent locations that allow your recipient to pick up the funds in cash, often within a matter of minutes. If you have a little more time, however, consider an independent transfer provider that can get you lower fees and stronger exchange rates.
What currencies can I send overseas?
South Africa does business with many other countries worldwide. When it comes to money transfers, you have options to convert your South African rand into US dollars, euros, Kenyan shillings, Indian rupees and many other currencies. Larger networks like Western Union will have the largest number of possible currencies, whereas smaller transfer services usually limit their supported currencies to the most popular ones.
Your best exchange options are online
The rise of online money transfer services gives you more options — and better rates — than ever before. These services specialise in safely moving money internationally, saving you frustration when making or receiving regular payments. Many also offer mobile apps so you can send money straight from your cellphone, while some support bank, cash pickup and mobile money transfers.
For expats
Whether you’re putting roots down in France, opening an office in Japan or spending while vacationing in Australia, compare to get the best exchange rates and lowest fees on sending money internationally.
For owners of overseas properties
Buying, selling or investing in a property abroad? Compare transfer services to make your purchase safely, whether closing on your dream home or scheduling recurring payments.
For larger international payments
Maybe you’re ready to buy that boat you’ve been eyeing. It could be time to pay off your child’s education abroad or support their destination wedding. Perhaps you’re coming into an inheritance that needs to be transferred to your South African account. When transferring big money, it all comes down to the exchange rate.
How important is the exchange rate?
A solid exchange rate is crucial. When it comes to larger amounts, even two cents in your favour can save — or cost you — hundreds or even thousands of rand. If you have the luxury of time, you may be able to take advantage of a limit order. A limit order allows you to set a target exchange rate with a service or broker, which monitors the markets 24/7 to ensure you don’t miss that target. Once rates meet what you’re looking for, you give the OK to complete the transfer.
My rights when it comes to money transfers
South Africa’s exchange control laws regulate money entering and leaving the country. These laws are administered by the South African Reserve Bank (SARB), which designates the responsibility for monitoring cross-border transactions to authorised dealers (banks).
Under these laws, foreign exchange transfers into and out of South Africa must be reported to SARB, which means you’ll be asked to provide a valid reason for your transfer. The following limits also apply to international transfers for South African residents:
- An annual R1 million discretionary allowance on transfers for individuals
- An additional R10 million allowance of foreign investment per year is also allowed, but you’ll need to obtain clearance from the South African Revenue Service (SARS)
Finally, if you’re receiving an international transfer in South Africa, you’ll need to fill out a SARB Reporting Mandate form. This form needs to be filled out each year and you won’t be able to receive the funds sent to you until it has been completed.
