Best way to send money internationally: a guide to international wire transfers

Wire transfers are a widely used method for sending money domestically and internationally. Institutions like SWIFT facilitate over 44 million transfer messages daily by connecting banks and financial institutions through a standardized messaging system. While SWIFT doesn’t move the money itself, it enables secure communication between parties, making it a key component of international wire transfers.

If you send wire transfers through your bank, expect to encounter transaction fees, high foreign exchange markups, and longer processing times – common drawbacks of traditional international payment methods.

This article explains how international wire transfers work, outlines their pros and cons, and explores alternative options, such as SWIFT transfers, that may offer faster and more cost-effective solutions for international businesses.

What is an international wire transfer?

An international wire transfer is an electronic method of sending money from a person or business in Canada to a recipient in another country. It's sometimes referred to as a telegraphic transfer (TT) or electronic funds transfer (EFT), though "wire transfer" is the most common term in Canada.

To complete an international wire transfer from Canada, the sender must provide accurate recipient details, including the recipient's full name, bank account number, the SWIFT/BIC code of the recipient’s bank, and in some cases, the recipient bank’s address. Unlike in Europe, Canada does not use IBANs.

The funds are transmitted electronically from the sender’s Canadian financial institution to the recipient’s bank overseas. If the two banks do not have a direct relationship, one or more intermediary (correspondent) banks may be involved to complete the transfer.

Both the sending and receiving banks may charge fees, and foreign exchange markups can apply if currency conversion is needed. These factors can affect the total amount received. Transfer times typically range from 1 to 5 business days, depending on the countries, banks, and compliance checks involved.

How do international wire transfers work?

While secure, international wire transfers can be relatively expensive due to fees charged by the sending bank, intermediary banks, and the recipient’s bank. Here's how the process typically works:

• Sending: The sender initiates the wire transfer by submitting a request through their bank – this can usually be done online, via a mobile app, or in person at a branch. The form requires details such as the recipient’s name, bank account number, SWIFT/BIC code, and recipient bank address (in some cases).

• Verification: The sender’s bank verifies the transfer request and confirms that the sender has sufficient funds. Depending on the amount or destination, the transaction may be reviewed for compliance or anti-fraud purposes.

• Processing: The bank debits the sender’s account for the transfer amount plus any applicable fees, then transmits the payment instructions through a secure network such as SWIFT.

• Intermediary banks: If the sender’s and recipient’s banks don’t have a direct relationship, the transfer may pass through one or more intermediary (correspondent) banks, each of which may charge a fee.

• Receiving: The recipient’s bank receives the funds and deposits them into the recipient’s account. Processing times can vary depending on the number of institutions involved and any currency conversions required.

International wire transfers are a convenient way for anyone to transfer money across borders and seas – commonly referred to as sending money overseas – and there are a few ways to get it done. Many people use these services to send money overseas to a family member. Typically, you work with your bank in person, online, via mobile apps, or over the phone. But there are also alternative international transfer services that can help you send and receive money quickly.

Setting up your bank account for international transfers

Before sending or receiving international wire transfers, it’s important to ensure your bank account is set up for global transactions. In Canada, this typically involves confirming that your account supports international transfers and that your bank has your correct account number, transit number, institution number, and SWIFT/BIC code on file. These identifiers are essential for routing funds securely to and from international banks.

Your financial institution may also require proof of identity and address, such as a government-issued ID and a recent utility bill or bank statement, to meet regulatory requirements under FINTRAC (Canada's anti-money laundering authority). These steps are usually part of your account setup or may apply when sending large or first-time international transfers.

Be sure to ask your bank about potential fees, including wire transfer fees, foreign exchange markups, and any fees for incoming transfers. Also, verify whether your account type, such as a savings account, is eligible to send or receive international wires, as some account types may be restricted.

Understanding these details upfront can help you avoid delays, reduce costs, and manage your international payments more effectively.

Essential account numbers and transfer details

Accurate account information is essential when initiating an international wire transfer from Canada. You’ll need to provide your account number, transit number, institution number, and the SWIFT code for your financial institution. The SWIFT code serves as a unique international identifier, ensuring your transfer reaches the correct destination bank.

You’ll also need the recipient’s full banking details, including their account number, bank name and address, and SWIFT code. If you're sending funds to a country that uses IBANs (International Bank Account Numbers), that number is also required to complete the transfer.

When entering the transfer amount, you may have the option to send in Canadian dollars (CAD) or the recipient’s local currency. Choosing to send in foreign currency can affect exchange rates, fees, and how much the recipient ultimately receives. It’s worth reviewing these options carefully with your bank.

Double-check every detail before confirming the transfer. Even small errors, such as a mistyped account number or incorrect SWIFT code, can cause delays, rejections, or misrouted funds. Most banks charge additional fees for returned or amended wire transfers.

For business accounts, confirm all requirements with your financial institution, especially for large or recurring payments. Some banks may require pre-authorization, transaction limits, or additional documentation, such as a wire agreement.

To streamline future transfers, consider creating a standardized checklist of required information for each vendor, client, or partner. This helps ensure secure, accurate, and efficient international payments.

Transfer money internationally through your bank online

Most banks in Canada and the US now support international wire transfers through online banking. While the exact process may vary, here’s how it typically works:

• Log in to your online banking and navigate to “Wire Transfers” or “International Transfers.”

• Enter the recipient’s details, including their full name, bank name and address, account number or IBAN, and the bank’s SWIFT/BIC code.

• Specify the amount and currency to send. Some online money transfer services may allow you to fund the transfer with a credit or debit card, although fees can vary. Banks usually debit your business or personal account directly.

• Review the fees, including wire transfer charges, possible intermediary bank fees, and foreign exchange costs. Using a credit card can add cash advance fees, so it’s important to check with your provider.

• Submit the transfer. Funds may be routed through intermediary banks if there is no direct relationship with the receiving bank. Transfers typically take 1–5 business days, depending on the destination and banking networks involved.

Transfer money in person or over the phone

If online isn't for you, banks also allow you to send a wire in person or over the phone. The process is pretty similar to the online banking service:

• Contact your bank in person or over the phone to initiate a transfer and send a wire.

• Submit all relevant information, including your personal details and the recipient's personal and banking information.

• Recipient bank's name and address

• Recipient's name and address

• Recipient's account number and account type

• Recipient bank's SWIFT code

• Confirm your transfer amount and received currency.

• Pay your service fees.

Use international transfer services to send payments

You can also complete international transfers using alternative providers instead of your regular bank. These fintech platforms facilitate electronic transfers to and from international accounts, often offering greater flexibility, faster delivery, and lower fees, especially for global businesses. Some services, like PayPal, allow you to send money internationally using your PayPal account, and funding transfers from your PayPal balance can reduce fees and speed up processing. Others support cash pickup or mobile wallet delivery, which can be helpful for recipients without traditional bank accounts.

The process is similar to online banking: enter the recipient’s details, select the currency, and authorize the transfer. Interfaces, fees, and delivery speed vary by provider, and some services may require an account setup or initial transaction before all features are available. Local regulations may also limit availability in certain countries.

For businesses, platforms like Airwallex offer more advanced capabilities. Airwallex helps companies manage multi-currency Global Accounts, automate cross-border payments and payouts, and reduce costs with competitive FX rates. Its payment APIs enable streamlined financial workflows across international markets.

Businesses that frequently transact in multiple currencies may benefit from an Airwallex multi-currency business account, which supports collections, holdings, and transfers in many of the world’s most widely used currencies.

Delivery methods for international money transfers

When sending money internationally, you have several delivery methods to choose from, each offering different levels of convenience, speed, and accessibility for your recipient. One popular option is cash pickup, where the recipient can collect funds in person from a Western Union location, MoneyGram, or another authorized agent. This method is ideal for recipients who may not have a bank account or need immediate access to cash.

Another common delivery method is a bank deposit, which sends the money directly into the recipient’s bank account. This is often the most straightforward and secure way to transfer money internationally, especially for those who prefer funds to be deposited directly.

Mobile wallet transfers are also gaining popularity, allowing recipients to receive money directly into their mobile wallet app. This method is beneficial in countries where mobile payments are widely adopted, allowing recipients to pay bills, shop online, or withdraw cash from participating agents or ATMs.

Some providers offer additional options, such as door-to-door cash delivery or transfer to a digital account, depending on the destination country. When selecting a delivery method for your international money transfer, consider factors such as transfer fees, exchange rates, delivery times, and the recipient’s access to banking or pickup services. Each delivery method has its own advantages, so selecting the right one can help ensure your money transfer is both efficient and cost-effective.

International wire transfers: things to know

International wire transfers are secure and widely used for global financial transactions. Individuals and businesses can typically initiate them through their bank’s online platform, mobile app, or in person. However, it’s essential to understand the full cost structure, which includes your bank’s wire transfer fee, potential charges from intermediary (correspondent) banks, and foreign exchange conversion fees, which may include a markup over the mid-market rate.

For outbound international wire transfers, many banks charge upfront fees, which can significantly increase the total cost of sending money abroad. These costs, along with potential deductions by intermediary or recipient banks, can affect the final amount received by the beneficiary.

Hidden fees and FX rates

Several costs are associated with international wire transfers. Here are the key fees to understand:

• Wire transfer fees: Banks typically charge fees for sending and receiving international wire transfers. In many cases, intermediary banks involved in routing the funds may also deduct fees, increasing the total cost of the transaction.

• Exchange rate margins: Many banks add a mid-market (interbank) exchange rate markup. This hidden fee can be challenging and may impact the total amount received. Because this markup is often not disclosed upfront, it can complicate forecasting and budgeting for international payments.

Fees vary significantly by service provider, so it's worth comparing your options. In addition to wire fees and FX markups, banks may impose other charges, such as compliance or processing fees. Always review the fee schedule before initiating a transfer.

You don't have to rely solely on your bank.

Airwallex offers a faster, more cost-effective alternative to traditional wire transfers. Businesses can send payments to over 150 countries via local payment networks, avoiding intermediary bank fees and minimizing FX costs. Airwallex also combines global payments with multi-currency accounts and Expense Management software, helping businesses simplify their financial operations on one platform.

Limitations and regulations

Local banking regulations and the policies of transfer service providers govern international wire transfers in Canada. While there’s no legal limit on how much you can send abroad, individual banks or money transfer services may impose their own limits or require additional documentation for large transactions.

Banks also set their own foreign exchange rates and fees, which may include service charges, transfer fees, and intermediary bank costs. Exchange rates and fees vary by provider and may be adjusted at their discretion, so it’s important to compare options before initiating an international transfer.

In Canada, any single or multiple international electronic funds transfers (EFTs) totaling CAD $10,000 or more within a 24-hour period must be reported to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), as required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This applies to banks, credit unions, and money service businesses.

Your bank or transfer provider may request supporting documentation for compliance purposes, especially for larger amounts. This may include:

• Proof of source of funds

• Government-issued ID and proof of address

• Recipient’s full banking details

• Purpose of the transfer (e.g., invoice payment, gift, family support)

Depending on the nature and size of the transfer, there may also be tax implications, especially for business payments or high-value personal transfers. If in doubt, consult a tax or legal professional.

Risks and safety measures

Wire transfers are generally considered a secure method of transferring funds and are a reliable way to send money internationally. However, there are some associated risks:

• Scammers can convince you to wire money by impersonating legitimate entities.

• Hackers who gain access to your account may be able to initiate wire transfers without your consent.

• Errors could result in funds being sent to the wrong destination.

• Hidden costs can result in problems when they are not factored into financial planning.

To mitigate these risks, you should:

• Always verify the identity of the recipient.

• Double-check all account details.

• Monitor your accounts for suspicious activity.

• Keep your personal and financial information secure.

• Understand the fees and exchange rate margins associated with the transfer.

• Be aware that some banks use early-warning services to monitor transactions and protect against fraud.

Common mistakes to avoid when sending money abroad

Sending money internationally is usually straightforward, but several common mistakes can result in delays, additional costs, or failed transfers. One of the most frequent errors is entering incorrect account details – such as the recipient’s name, account number, or SWIFT/BIC code. Even a small typo can cause the transfer to be delayed, rejected, or misrouted.

Another common pitfall is failing to check the full cost of the transfer, including exchange rates and all associated fees. Some providers may offer low upfront fees but apply unfavorable currency conversion rates or hidden markups that reduce the final amount received. Always compare providers based on the total cost, not just the advertised transfer fee.

It’s also important to understand transfer limits and compliance requirements, both in your country and the recipient’s. Overlooking these details can result in failed transactions or regulatory issues.

Additionally, using an unregulated or unverified transfer service can compromise your personal or financial data. Stick with providers that are registered with the appropriate financial authorities and use secure, encrypted systems.

To avoid these issues, always:

• Double-check all recipient details

• Review the full cost, including exchange rate margins

• Understand country-specific rules and limits

• Use trusted, regulated providers

Taking a few extra minutes to review these details can help ensure your money reaches its destination safely and efficiently.

International wire transfers: Frequently asked questions

How long do international wire transfers take?

How long an international wire transfer takes depends on the transfer method. Traditional bank transfers usually take 1 to 5 business days to process. In contrast, modern platforms like Airwallex use local payment rails that enable same-day settlement for up to 90% of transactions.

Several factors can affect international transfer speeds, including:

• The service provider and banking networks used

• Country regulations and direct banking relationships

• Whether currency conversion is required

• The use of intermediary banks, which can introduce delays

How much do international wire transfers cost?

International wire transfer fees in Canada usually range from CAD $20 to CAD $80 per transaction, depending on the sending bank, the recipient bank, and the amount being transferred.

Additional costs include:

• Flat transaction fees: These typically range between CAD $20 and CAD $50 for sending international transfers, though they can be higher for larger amounts.

• Receiving fees: The recipient's bank may also charge a fee, often around CAD $10 to CAD $20.

• Currency exchange fees: Banks typically add a markup on the exchange rate, ranging from 1% to 3.5% above the mid-market rate.

If your transfer involves intermediary banks, additional fees might be deducted. Therefore, the total cost of the transfer could vary depending on the bank, destination, and the transfer method.

What’s the cheapest way to transfer money internationally?

Costs vary, and wire transfer fees can impact your bottom line. So you should compare key wire transfer fees before committing to a service provider:

• Transfer fees

• Exchange rates

• Consider transfer size – some offer better or worse rates for higher amounts.

It also depends on your needs. A one-time transfer might be best suited for your bank, but specialised business accounts can help cross-border businesses save time and money.

For example, Airwallex’s international business debit cards allow employees to easily handle day-to-day business costs, like paying suppliers and employees globally, without a five-day waiting period or expensive transaction costs.

What do you need for an international bank transfer?

Necessary documentation for a SWIFT transfer network service boils down to your personal information, the recipient’s personal information, bank details, and the transfer amount. More specifically, you’ll need:

• Bank identification, including name and address for the sending and recipient banks.

• Personal identification, including name, address, and potentially proof of ID for the sender and receiver.

• Bank account or IBAN numbers.

• Bank SWIFT account numbers.

• Transfer amount, including the deposited currency after exchange.

Airwallex cuts costs without sacrificing service

International wire transfers are secure and accessible, but they’re also time-consuming and expensive. Global businesses are often better suited to alternative fintech services like Airwallex, a global payments and financial platform with its own proprietary payments network.

Airwallex enables businesses to transfer funds efficiently and cost-effectively across 150+ countries and 60+ currencies. From automotive payouts to flexible, borderless business cards, Airwallex exists to help companies worldwide unlock new opportunities and grow without limits.

Ready to take control of your global money movement and future-proof your business for global scale? Switch to Airwallex international money transfers today.

Sources:

1. https://www.swift.com/about-us/discover-swift/fin-traffic-figures

2. https://www.fintrac-canafe.gc.ca