Do you send money home to family every month?
Then you know the heartbreak of working hard for your paycheck, clicking send… and watching money vanish before it hits the bank.
Here’s the problem:
The average consumer doesn’t know how much they are paying. Transfer services and banks disguise fees where you don’t expect them. All those little slices add up to hundreds of dollars a year.
The fee you see is rarely the fee you pay.
The good news? Once you know what to look for, finding the cheapest way to send money internationally isn’t difficult. Here are 6 easy tips to ensure more of your money goes to…well…the people you’re sending money to.
What’s Inside This Guide:
- Why Sending Money Abroad Costs So Much
- 6 Ways To Cut Your Transfer Fees
- Which Method Should You Pick?
Why Sending Money Abroad Costs So Much
Remitting money internationally is a lucrative industry. The UN reported that migrants remitted $728.6 billion home to low- and middle-income countries in 2025. This is nearly double the amount from ten years ago.
And with that much money moving around… the fees really matter.
Today, sending money costs an average of 6.36% of the amount you send. Sounds low? Well consider this:
Sending $500 home monthly costs you about $380/year in fees.
Ouch.
Sending money internationally can be expensive, but did you know that the fastest and cheapest way to send money abroad these days isn’t through your bank branch? It’s through a mobile app.
Money transfer apps like Paysend allow you to transfer money from your phone, anywhere in the world. Before you send, they show you the fee so you can stay informed. Transparent fees like that help you compare prices and keep more of your hard-earned money.
However, choosing the right app is only half the battle. Now here are some ways to trim your expenses even more…
6 Ways To Cut Your Transfer Fees
Read all six. Choose those that apply to you and implement them whenever you wire.
It really is that simple.
1. Stop Using Your Bank For Transfers.
This is the biggest money saver on the list…
Sending money internationally via your bank is almost always the most costly option. According to the World Bank, banks charged an average cost of 14.55% during the first quarter of 2025. That’s more than twice the global average!
Why so high? Banks stack up a few different charges at once:
- A flat sending fee
- Fees from “middle-man” banks along the way
- A receiving fee at the other end
Keep in mind then that your family could receive substantially less. Money transfer services are significantly less expensive, at around 5.04% on average. Digital-only services can be cheaper still.
2. Always Check The Exchange Rate
Here’s something most people miss…
A transfer service can advertise “zero fees” and still charge you a large percentage of your money.WHY? The exchange rate.
The actual exchange rate is called the mid-market rate. The rate you’ll find if you google “USD to INR” (or whatever currency conversion you are looking for). Most providers will offer you a worse rate and secretly pocket the difference.
Think about it:
So if the real rate is 1 dollar = 85 rupees and they give you 82, you lose 3 rupees on every dollar you send. On $500, that’s 1,500 rupees your family will never see.
Ok, quick recap before you click send. Check the rate you’ve been given against the mid-market rate. The smaller the difference, the better deal you’re getting.
3. Compare The Final Amount, Not The Fee.
This ties in nicely with tip #2.
When comparing fees, don’t just consider the fee. Consider how much money actually shows up in the other account. That’s the only number that counts.
Most transfer apps will display this upfront before you commit. Spend 2 minutes comparing 2-3 providers side by side and choose whichever one transfers the most. There’s also a free World Bank price comparison database that includes the average prices across hundreds of country corridors — useful if you just want a quick reference.
4. Send Bigger Amounts, Less Often
Many services charge a flat rate per transaction, which means smaller transfers are disproportionately affected.
For example…
5% of a $100 transfer is $5. But $5 is only 1% of a $500 transfer.
Consider going monthly instead of weekly if you can wait. You’ll pay the fee once a month instead of four times a month. Every little bit helps.
5. Pay With Your Bank Account, Not A Credit Card
How you pay for your transfer matters too.
Using a credit card can be fast… but it can also be the most expensive way to pay. Some cards view a money transfer as a cash advance. You could be hit with additional fees and start accruing interest immediately.
If possible, pay by debit card or directly from your bank account. It will almost always be cheaper. Yes, it may take a couple hours longer.
6. Choose Digital Delivery Over Cash Pickup
Last but not least, think about how your family receives the money.
Pickup from an agent shop costs more to process, so those payouts usually have a higher fee. Transfers to a bank account, card, or mobile wallet are typically cheaper.
However, another UN report showed only 35% of services could be completed online in 2025. Leaving many people paying fees for cash.
If your family has a bank account or mobile wallet… use it!
Which Method Should You Pick?
Honestly, there’s no single “best” option for everyone. It depends on:
- Where you’re sending money
- How much you’re sending
- How fast it needs to arrive
- How your family wants to receive it
However, for most transactions, an app like Wise that uses a debit card and transfers money directly into a bank account is the cheapest way to send money overseas.
The Bottom Line On Transfer Fees.
International transfers shouldn’t cost you a large chunk of your paycheck. Fees and hidden exchange-rate margins stealthily chip away at every transaction you send. Here are a few simple tips to help you keep more.
To quickly recap:
- Skip the bank
- Check the exchange rate
- Compare the final amount
- Send less often
- Pay by debit card or bank account
- Choose digital delivery
Apply one or two of these tips next time you make a transfer. Notice the difference in how much money arrives.
Your family will notice the difference!
