Step 1: Understand international transfer methods
When you send money from the US to another country, it’s not always a single, rapid transfer. The money travels through different financial systems, which impacts the time it takes and the fees you pay.
How to send a wire transfer: The reality of SWIFT transfers
The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, is the established, global messaging network used to communicate transfer instructions.
While reliable, the system’s designed around a chain of communication, not speed. If you send money from the US overseas, it might pass through several intermediaries before reaching its destination. This multi-stage process creates friction and added costs. Here’s a breakdown:
- Speed: SWIFT transfers often take 3–5 business days, but can be longer if you make the transaction on weekends or public holidays.
- Cost clarity: A common issue for customers is the lack of clarity. Intermediaries often deduct their own fees along the way, meaning the recipient may receive less money than you intended to send.
The efficiency of local payment networks for international transfers
Modern payment providers like us use local payment rails wherever possible. These are domestic or regional systems, such as the Single European Payments Area (SEPA) in Europe, or equivalent systems in the UK or Australia.
By having accounts and networks in different countries, we’re able to route money quickly through the recipient’s local system. That way, international transfers with us may bypass the long, multi-stop SWIFT network.
In the US, we use systems like ACH (Automated Clearing House) to move money domestically before it enters our global network. This ensures the first leg of your money’s journey is as efficient as the last.
Exchange fees,remittance fees, fair usage limits, and Terms and Conditions apply.
Step 2: Master the costs when sending money internationally
The total cost of sending money from the US is determined by 2 main factors: the transfer fee and the exchange rate.
Decoding the 2 types of transfer fees
Transfer fees are what the provider charges for the payment. You need to consider:
- The outgoing fee: This is charged by the service you use. It should always be clear and upfront.
- Intermediary fees: These are the unpredictable costs that can be taken from your transfer total by SWIFT correspondent institutions along its way.
At Revolut, we avoid the SWIFT system and use local payment systems where possible. This generally helps you avoid this type of fee, and gives you more control over the final amount that goes to your recipient.
Sending money overseas: the exchange rate factor
The exchange rate is the price of one currency in relation to another, and it’s the main factor determining the final value of your transfer. Most providers, including ourselves, apply a mark-up to the real-time exchange rate.
When a provider offers you a rate, they often widen the gap between the market rate and the rate they charge you. For example, if the real-time rate is €0.92 to $1, but the provider offers €0.90, that 2-cent difference is a fee. On large international money transfers, this difference quickly adds up.
At Revolut, we aim for clarity and competitive pricing. We offer you our competitive Revolut exchange rate for your overseas transfers. You can check exchange rates at any time in-app, and we’ll always show you the rate before you complete a payment.
Timing your transfers to manage rate volatility
Global exchange rates are constantly changing based on market volume, news events, and economic data. This volatility can affect your transfer amount.
- Market hours: The most competitive and stable exchange rates are generally available during global business hours (Monday–Friday, 9am–5pm GMT). Outside these hours, currency markets are closed, and we may charge weekend fees, depending on your plan.
- Fixed vs variable rates: When you initiate a transfer, your rate can either be fixed (locked in at the moment you confirm the payment) or variable (set when the receiving bank processes the payment, which could be days later). At Revolut, we set the rate as soon as you tell us what you want to spend.
Fair usage limits and weekend fees may apply, depending on your plan.
