Personal money transfers explained

You can arrange an international transfer through your bank, either online, through mobile banking or, in some cases, by visiting a branch.

This can be one of the simplest options if you already have a bank account, because you may not need to register with a separate provider. However, banks can charge fees and may offer less competitive exchange rates than specialist money transfer providers.

Specialist international money transfer providers are designed to send money between countries and can often offer competitive exchange rates and fees.

You’ll generally need to register an account and provide some personal information before making your first transfer. Depending on the provider, you may also be able to arrange transfers online, through an app or over the phone.

For larger transfers, some providers may offer additional services such as the ability to lock in an exchange rate for a future payment.

Online payment services and digital wallets can provide a quick and convenient way to send money overseas, particularly for smaller payments.

However, transaction limits, fees, exchange rates and the countries supported can vary. They may therefore be less suitable for larger transfers.

Some money transfer services allow the recipient to collect cash from an agent location rather than receiving the money directly into their bank account.

This can be useful if the recipient doesn't have a bank account or needs access to cash quickly. However, fees and exchange-rate mark-ups can be higher, and providers and individual collection locations may have limits on how much can be collected.

Compare the exchange rate as well as the transfer fee. A provider advertising no transfer fee can still make money by applying a margin to its exchange rate.

For a large transfer, even a small difference in the exchange rate can have a significant effect on the amount the recipient receives.

You should also check whether the recipient's bank or an intermediary bank could deduct a charge from the payment.

Think about when the money needs to arrive. Some international transfers can arrive within minutes or hours, while others can take several working days.

The speed can depend on the provider, destination, currency, payment method and banking hours. Additional identity or security checks can also delay a transfer.

Check that the provider is authorised or registered with the appropriate regulator and that it has permission to provide the service you intend to use.

Non-bank payment service providers operating in the UK must generally be authorised or registered with the Financial Conduct Authority (FCA), although the regulatory status and protections can vary depending on the type of provider. You can check the provider on the FCA Financial Services Register.

It's also important to understand that FCA regulation does not necessarily mean your money is protected by the Financial Services Compensation Scheme (FSCS). Some regulated payment providers instead safeguard customer funds. This generally means keeping customers' money separate from the provider's own money, so it should be returned to customers if the provider fails.

Consider how easy it is to arrange the transfer and what payment methods are available.

Some providers allow you to arrange payments online or through an app, while others offer telephone support. If you send money regularly, features such as saved recipient details, regular payments or rate alerts could make the process easier.

Check whether the provider has minimum or maximum transfer limits. Larger transfers may also require additional identity or source-of-funds checks.

If you regularly send large amounts overseas, it may be worth comparing specialist providers with your bank to see which offers the most suitable combination of rate, fees and service.

Not every provider supports every country or currency. Check that the destination is supported and find out whether the recipient will receive the money directly into their bank account, mobile wallet or as cash.