How to Transfer funds internationally

The world is a much smaller place than it was in previously generations. International funds transfers that were once limited to the realm of big business have now become commonplace for small businesses or even individuals. Most people have three options available to them when it comes to transferring funds internationally. One is to utilize a money transfer agent, such as Western Union or Money Gram. This type of transaction is nearly instant, but has some risks and also carries high fees. A person may also opt to use money orders, which are easy and secure, but have a very slow delivery time. Or the third option is to use a bank transfer, which is very fast and probably the most secure option available. Here is a step-by-step guide on how to use a bank to transfer funds internationally.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• The transaction information and account number for the recipient’s bank account.
• Enough money to pay for the transaction plus transaction fees

1. Contact the person that you are transferring funds to and ask them for the relevant transaction details for their account. If they are unsure of their information, their bank will be happy to provide it to them. Similar to how domestic transactions require a routing and account number, international funds transfers require an international bank account number. This is referred to as a CLABE in Mexico, or as an IBAN in most of Europe.
2. Proceed to your bank and ask the teller for a form to fill out in order to transfer funds internationally. You usually do not need to have an account at the bank, but you will need to pay in cash. Credit Unions typically only provide this service for members who have an account.
3. Fill out the form, which will include your personal information, as well as the transaction details for the account you are transferring funds to. Return the completed form to the teller.
4. Pay for the transaction plus the transaction fee. If you have an account at the bank, the funds can simply be deducted from your account, otherwise you will need to pay in cash. The transaction fee typically ranges from $20 to $40, but can be as much as $65 for those who do not have an account at the bank. Credit unions are generally more favorable in terms of the fees they charge.
5. Collect your receipt and notify the other part that the funds transfer has been initiated. Note that a bank transfer is not instantaneous and may take several hours to clear at the recipient account, so exercise patience if it does not arrive immediately.

Tips & Warnings

• Do not expect the bank to know the transaction details for the receiving bank. They most likely will not. You should have this information with you when you arrive to make the transfer.
• Under the Patriot Act, financial institutions in the U.S. are required to report some transactions that are suspicious of money laundering. Do not get offended if the teller asks about the nature of the transaction, particularly if it is over $5,000 or if you make international transfers frequently.