How to receive money internationally: Methods, fees, and compliance requirements

Key takeaways

• The global cross-border payment market is projected to reach $397.37 billion in 2026, exhibiting a steady compound annual growth rate of 7.9% as businesses increasingly prioritize speed and transparency over legacy infrastructure.¹

• United States tax residents must report aggregate foreign gifts exceeding $100,000 from individuals or $20,573 from foreign corporations for the 2026 tax year using IRS Form 3520 to avoid penalties reaching 25% of the total value.

• The best method to receive money internationally is Airwallex, which outperforms traditional banking institutions and specialized providers like Wise or Bank of America by offering native like-for-like settlement in over 20 currencies.

Operating a business in a global economy requires a sophisticated strategy for payment reception that reduces friction and maximizes margin preservation. Navigating the intersection of correspondent banking networks, regional routing codes, and stringent federal reporting mandates is essential for any enterprise scaling beyond domestic borders. This guide provides the technical and regulatory framework necessary to optimize international fund reception. 

Best methods for receiving money from abroad

The selection of a top online payment method dictates the underlying clearing mechanism, which in turn determines the total cost of the transaction and the speed of capital availability. As digital trade accelerates, the distinction between "centralized" correspondent banking and "decentralized" local rail settlement has become the primary driver of competitive advantage for modern firms.

1. Multi-currency business accounts (best for scaling)

Multi-currency business accounts represent the pinnacle of modern financial infrastructure for high-growth companies. These accounts provide a unified digital environment where multiple currency balances are maintained without the requirement of a local legal entity in every market. This architectural shift allows businesses to receive funds from over 70 countries through international payment methods that bypass the high-cost SWIFT network entirely.

The mechanism of a Global Account relies on the provision of local bank details in foreign markets. A US-based business can generate a Euro IBAN, a UK sort code, or an Australian BSB number instantly. This enables international clients to pay using their domestic clearing systems, such as SEPA in Europe or Faster Payments in the UK, which facilitates settlement in minutes rather than days.

Benefits of like-for-like settlement

Like-for-like settlement is the process of receiving and maintaining funds in the original currency of the transaction. Traditional banks typically utilize a "forced conversion" model where any incoming foreign currency is automatically converted into the account holder's home currency at an unfavorable exchange rate. This process can silently erode profit margins by 3% to 5% before the capital is even accessible.

By utilizing like-for-like settlement, eCommerce sellers and digital agencies can hold these funds in a multi-currency wallet to pay international suppliers or employees directly in their native currency. This strategy effectively eliminates two legs of currency conversion, preserving the maximum value of the initial transaction and improving cash flow predictability. For businesses processing high-volume cross-border payments, this architectural advantage is the primary lever for reducing the total cost of global operations.

2. Traditional bank wire transfers (best for high-value one-offs)

Traditional bank wires are conducted over the SWIFT network, a messaging system that connects more than 11,000 financial institutions worldwide. This method remains the default for high-value, infrequent corporate transactions because it offers a high degree of institutional trust and a comprehensive audit trail required for significant asset transfers.

Security is rated as extremely high because every participant in the chain is a licensed bank subject to rigorous central bank oversight. However, the cost efficiency of the international wire transfers model has declined as fintech alternatives have matured. Banks frequently add a margin of 2% to 4% to the interbank rate and charge flat incoming fees that average $15, with additional costs often deducted by intermediary banks during the routing process.

3. Online money transfer services (best for speed)

Specialized online money transfer operators utilize a "netting" model or private global liquidity pools to settle transactions. This allows them to bypass the multi-hop correspondent banking network entirely. In 2025, digital-only providers offered an average transaction cost of 3.55%, which is significantly lower than the 14.55% average cost reported for traditional banks.

The speed advantage of these services is particularly evident in corridors such as the US to Mexico or the UK to India, where digital settlement can occur in under 20 seconds. These platforms are highly secure, employing real-time AI fraud detection and biometric authentication that often exceeds the security capabilities of older legacy banking portals.

4. Digital wallets and P2P apps (best for small amounts)

Digital wallets provide extreme convenience for small-value transfers, especially between individuals who already exist within the same ecosystem. While these transfers are typically instant, they are not optimized for business use due to high withdrawal fees and limited support for commercial tax reporting. P2P apps like Venmo and Zelle generally do not support international transfers, and those that do, like PayPal, may charge conversion fees as high as 3% to 4%. Security is moderate; while these apps protect against hackers, funds are not always government-insured in the same way as traditional bank deposits.

5. Cash pickup and money orders (best for the unbanked)

For recipients in emerging markets or those without access to formal banking infrastructure, cash pickup remains a vital necessity. Services like Western Union allow a sender in the US to transmit funds that can be collected as physical currency within minutes at global locations. While secure for the recipient, this is the most expensive method for the sender, often carrying the highest exchange rate markups in the industry. International money orders are a secure, prepaid alternative, but the requirement for physical mailing makes them the slowest possible option for receiving international funds.

What information you’ll need to receive money internationally

The accuracy of recipient data is the most significant factor in preventing transaction rejections and subsequent "return fees." As the industry moves toward ISO 20022 messaging standards, the requirement for structured and precise data has become even more stringent to facilitate automated straight-through processing.

Standard recipient identification

Every international transfer requires a core set of identifying information to navigate the global financial system. The sender must provide the recipient's full legal name, a physical residential or business address (PO Boxes are frequently rejected), and the specific type of bank account being used.

SWIFT/BIC codes vs. IBAN

The financial industry utilizes two different systems to identify institutional and individual accounts. A failure to distinguish between these codes can lead to the "short-payment" of an invoice or the total loss of funds if routed to an incorrect branch.

The SWIFT code is an 8 or 11-character alphanumeric code that acts as a digital address for the bank itself. The IBAN is a longer string of up to 34 characters that includes a country code and a check digit, providing a standardized way for systems to verify the account's validity before the money moves. While the IBAN is mandatory in the European Economic Area, many regions like the US and Australia still rely on a combination of SWIFT codes and domestic account numbers.

Account numbers and legal name requirements

Recipient account numbers typically range from 10 to 12 digits, but this varies by jurisdiction. It is imperative that the recipient's name matches the "account holder of record" exactly. Many intermediary banks now utilize automated name-matching software as part of their Anti-Money Laundering (AML) checks; even a minor discrepancy, such as using "Inc." when the bank record says "Incorporated," can trigger a compliance hold or a transaction reversal.

Region-specific requirements

Beyond global standards, most countries maintain their own domestic routing systems that are required to finalize the "last mile" of a transfer once the funds enter the local clearing house.

USA: Routing numbers (ACH/ABA)

In the United States, funds are routed via a nine-digit routing number. Senders must distinguish between the ABA routing number used for wire transfers and the ACH payment routing number used for domestic direct deposits. Providing the incorrect routing number type is a primary cause for delayed settlement in the US financial system.

UK & Australia: Sort codes and BSB

The United Kingdom utilizes a six-digit sort code that specifies the bank and the specific branch location. Australia uses a similar six-digit code known as the Bank-State-Branch (BSB) code. Including these identifiers allows funds to bypass the SWIFT network once they reach the destination country, clearing through local systems like the UK's Faster Payments network for near-instant availability.

India & Mexico: IFSC and CLABE codes

Receiving funds in Mexico and India requires specific identifiers that are mandatory for any domestic inter-bank movement.

The IFSC is essential for India’s NEFT, RTGS, and IMPS systems, and it must be verified against the Reserve Bank of India’s central directory. The Mexico CLABE (Clave Bancaria Estandarizada) includes a bank code, a branch code, and a control digit to ensure the funds reach the intended recipient without the errors common in the old 11-digit numbering system.

The hidden costs of currency conversion

The "sticker price" of an international transfer—the flat fee displayed by the bank—is often only a fraction of the total economic cost. For large business transactions, the cumulative impact of FX spreads and intermediary deductions can represent a significant operational burden.

FX markups vs. the mid-market rate

The mid-market rate, or the "interbank" rate, is the price at which financial institutions buy and sell currencies between themselves. Most retail banks and some money transfer services do not offer this rate to customers; instead, they add a markup or "spread". While a 0.5% markup is considered competitive, many traditional banks charge between 3% and 5%, which amounts to $3,000 to $5,000 for every $100,000 received. Modern platforms provide access to interbank rates with a transparent markup, enabling businesses to save up to 80% on these conversion costs.

Understanding intermediary "lift fees"

When an international wire is processed through the SWIFT network, it rarely moves directly from the sender's bank to the recipient's bank. Instead, it travels through a series of "correspondent" banks, each of which may deduct a handling fee known as a "lift fee" or "lifting charge". These fees are typically between $10 and $30 per bank in the chain.

To manage these costs during the how wire transfers work process, senders use specific instruction codes:

• OUR: The sender covers all fees, and the recipient receives the exact amount invoiced.

• SHA (Shared): The sender pays their bank’s fee, while the recipient pays the intermediary and incoming fees, often leading to a "short" payment.

• BEN (Beneficiary): The recipient pays all costs, which are deducted from the principal amount before it is credited.

Timing your transfer for favorable rates

Currency volatility can erase months of profit for an eCommerce seller or digital agency. Utilizing a multi-currency account allows a business to hold a foreign currency balance until market conditions improve. Advanced treasury tools now offer "LockFX" features, which allow a business to secure a specific exchange rate for a designated period, effectively hedging against sudden devaluations in key trading pairs.

Regulatory and reporting rules for receiving money from abroad

Federal oversight of international capital flows has intensified to combat global financial crime. For US-based SMBs and individuals, compliance is not just a tax requirement but a core component of maintaining access to the global banking system.

The $10,000 reporting threshold (Bank Secrecy Act)

Financial institutions are federally mandated to report any international transaction exceeding $10,000 to the Financial Crimes Enforcement Network (FinCEN). While the bank typically handles the filing of the Currency Transaction Report (CTR), recipients may be required to provide "Source of Wealth" documentation if the transaction triggers internal risk thresholds. It is critical to maintain clear invoices and contracts to satisfy these audits quickly and prevent the freezing of accounts.

IRS Form 3520: reporting large foreign gifts

Form 3520 is an informational return used to report the receipt of large gifts or bequests from non-US persons. These gifts are generally not taxable to the recipient, but failure to report them accurately and on time can trigger discretionary penalties reaching 35% of the total value.

Source:

A common compliance failure occurs when a recipient receives multiple small gifts from related family members that, in aggregate, exceed the $100,000 limit. The IRS considers parents, siblings, and controlled corporate entities as "related," and their contributions must be summed for reporting purposes.

FBAR and FATCA: managing foreign accounts

Maintaining capital in accounts outside the United States triggers additional annual disclosure requirements.

• FBAR (FinCEN Form 114): This form is required if the aggregate value of all foreign financial accounts exceeds $10,000 at any point during the calendar year. The FBAR is filed electronically via the FinCEN website and is not part of the standard tax return.

• FATCA (Form 8938): This is part of the standard IRS tax return and covers a broader range of assets, including foreign stocks, partnership interests, and beneficial interests in foreign trusts. The thresholds for FATCA are significantly higher, starting at $50,000 for single US residents.

How to optimize receiving money based on your business type

A "one-size-fits-all" approach to international payments often leads to unnecessary margin leakage. Tailoring the reception infrastructure to the specific demands of the business model is the most effective way to ensure long-term profitability.

For freelancers and agencies

Freelancers often suffer from "short-landing," where intermediary bank fees result in receiving less than the amount specified on their invoice. To solve this, agencies should provide clients with local bank details in the client's own jurisdiction. By utilizing a multi-currency account, a US-based agency can accept payments via ACH from US clients and via SEPA from European clients, ensuring that 100% of the invoiced amount arrives in the wallet instantly.

For eCommerce businesses

Online retailers selling on global platforms like Amazon or Shopify often lose significant margins to automatic "forced" currency conversions. Amazon, for example, typically converts revenue from international marketplaces into the seller's home currency at a rate that includes a substantial markup. By integrating a multi-currency Global Account with these platforms, sellers can receive payouts in the native currency (e.g., Euros or Pounds) and use those funds to pay international suppliers directly, bypassing the conversion process entirely.

For enterprise businesses

Large enterprises with high transaction volumes require automation to maintain operational efficiency. Modern financial platforms provide robust APIs that allow companies to programmatically create and manage thousands of unique virtual accounts for their customers. These systems integrate directly with ERPs like NetSuite or Xero, enabling real-time reconciliation and automated reporting for tax compliance. Tise of AI-driven "agentic payments" is expected to further streamline this process by automatically routing funds to the most cost-effective clearing rails based on real-time network data.

Airwallex has engineered a global financial infrastructure designed to solve the complexity of modern cross-border trade. By combining over 60 banking licenses with a proprietary network of global financial partnerships, the platform enables 94% of transactions to bypass the SWIFT network entirely. This architecture allows businesses to receive funds from over 70 countries with approximately 93% of transfers arriving within hours or on the same day.

Frequently asked questions about how to receive money internationally

Can I receive money from abroad in my bank account?

Most traditional US bank accounts can receive international funds via the SWIFT network if you provide the sender with your bank’s SWIFT code and your account number. However, this method often incurs an incoming wire fee of approximately $15 and subjects the transaction to a 2% to 5% exchange rate markup if a currency conversion is required.

How long does it take to receive an international wire transfer?

A traditional SWIFT transfer typically takes between one and five business days to clear, as the funds must pass through multiple intermediary banks. Modern digital accounts that utilize local payment rails can settle the same funds within minutes or on the same business day.

Do I have to pay tax on money received from abroad in the US?

Receiving a gift or inheritance from abroad is generally not a taxable event for US persons. However, if the funds represent income from employment, self-employment, or investments, they must be reported as taxable income to the IRS. Regardless of tax liability, any gift exceeding $100,000 from an individual or $20,573 from a corporation in 2026 must be reported using Form 3520.

What is the cheapest way to receive money internationally?

The most cost-effective method is utilizing a multi-currency business account that provides local bank details in the sender's country. This allows the sender to utilize local, low-cost domestic clearing networks and enables the recipient to receive funds without incurring wire fees or forced currency conversion markups.

Is it safe to share my SWIFT code and account number?

It is generally safe to provide your SWIFT/BIC code and bank account number to a trusted sender, as these are public-facing identifiers required to route funds to your account. You should never share your online banking passwords, mobile PINs, or two-factor authentication codes, as these are never required to receive a payment.

Sources

1. https://www.fortunebusinessinsights.com/cross-border-payments-market-110223

2. https://www.juniperresearch.com/press/b2b-cross-border-payment-transaction-values/

3. https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill

4. https://remittanceprices.worldbank.org/

5. https://www.airwallex.com/us/blog/bank-of-america-business-account-vs-airwallex-business-account