How To Transfer Money To Someone Without A Bank Account

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Choose from several different methods to transfer money from foreign countries. Depending on where you are located and the amount you want to send, you may choose to work with a bank to write a check or do a wire transfer. You can also use a remittance service to transfer money. For large sums of money, use a foreign exchange service.

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Write a foreign draft or check. If you have a bank account in a foreign country and you want to send it to a recipient in the United States, you can write a check in the local currency and send it to the recipient in the United States. The recipient may then cash the check at a bank in the United States. However, the recipient may encounter some obstacles. Regulations and policies surrounding personal and business checks differ in countries around the world.^[1]
- Many banks in the United States will not cash a foreign check unless it is payable through a bank in the United States.
- It is expensive. If the American bank accepts the check, they will keep a percentage of the exchange rate. Also, they may charge a foreign-check processing fee.
- The American bank may impose a hold on the funds. This means the money won't be available to the recipient until the check clears, which may take days, weeks or months.
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Wire money through your bank. You can go to your bank and request a wire transfer. A wire transfer is an electronic transfer of funds from one financial institution to another. You will need to know if the receiving bank accepts wire transfers in foreign currency. If not, you will have to wire the money in U.S. currency.^[2]
- Expect to pay a flat fee for initiating the wire transfer. Also, the recipient will pay a flat fee for receiving the wire transfer. The amount of the fee varies by bank.
- International wire transfers can take anywhere from three to five days.
3
Gather relevant information. To wire money internationally, You will need to know the recipient's bank account number and name and address. Also, you will need to now the receiving bank's name and address, routing number and code.^[3]
- SWIFT codes are international identifier codes that are assigned to every bank by Society for Worldwide Interbank Financial Telecommunication ("SWIFT") in Belgium.^[4]
- The routing number is a nine-digit code that represents your U.S. bank's location. You can find it on the bottom left-hand side of your checks.^[5]

1
Wire money from Western Union or MoneyGram. You can visit a physical office, or you can initiate the wire transfer online. You can fund the transfer with cash or with a debit or credit card. You can send the funds directly to the recipient's bank account, or to another Western Union or MoneyGram office.^[6]
- You pay in your local currency, and the recipient in the United States receives the money in U.S. dollars. Therefore, know the exchange rate and adjust accordingly so that the recipient receives the correct amount.
- For example, suppose you are in Australia and you want a recipient in the U.S. to receive $20, and the exchange rate is 1 AUD (Australian dollar) = 0.6985 USD (U.S. dollar). You would need to send $28.62 in AUD for the recipient to receive $20 USD.
- The fees for sending money internationally vary depending on the amount you are sending, how quickly the money needs to be available and the payment type you choose.
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Compare Western Union and MoneyGram. Western Union is the larger of the two companies. It has been established for a longer amount of time, so it has name recognition and people trust the company. Western Union fees can be expensive. MoneyGram fees tend to be somewhat lower. MoneyGram has also built its reputation on international money transfers.^[7]
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Remit funds with Paypal. PayPal is an online remittance service. Both parties must be registered PayPal users. Also, both must have a registered bank account. To initiate a transfer, log in to your PayPal account and click on "Send and Request," and then click on "Send Money to Friends and Family." Enter the e-mail address, mobile number or name of the recipient. You enter the amount in your local currency, and PayPal exchanges it so the recipient receives it in his local currency.
- The price per transaction depends on the currency you are using. It is generally a percentage of the amount sent plus a flat transaction fee.^[8]
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Send money with Xoom. With Xoom, you can transfer up to $2,999 USD from a bank account for a flat fee of $4.99 USD. It costs more to use a credit card. The money is deposited into the recipient's bank account within two business days. The exchange rate is fixed at the time of your transfer.^[9]
- Xoom can send money to 56 countries outside of the US and allows you to send money to anyone with a US bank account.
- In 2012, Consumer Reports ranked Xoom as the best way to transfer money internationally, beating out PayPal, MoneyGram and Western Union in fees and exchange rates.^[10]

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Understand the meaning of a foreign exchange service. Don't confuse them with foreign exchange traders who perform a different service. Foreign exchange (forex) companies complete international currency transfers to individuals and businesses. They transfer the funds from one country to the other and exchange the currency between the two countries. Most forex companies are located in the United Kingdom (U.K.), but some are also located in North America and Asia.^[11]
- Forex companies should only be used for large transactions of over $3,000. The company does not charge a fee; they make money on the exchange rate.^[12]
- Consider OFX, an online forex company that accepts wire transfers from your bank account or you can apply to set up an ACH direct debit. Most transfers take one to two business days and you can track the progress on their app. The fees are minimal — $5 for transfers under $5,000, and no fee for $5,000 or above.^[13]
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Initiate the transfer. If you don't already have one, open an account with the broker. It may take a day or two to open a new account. Next pay in or transfer money from your bank account to the brokerage account. Give the brokerage the information about the recipient. Research the exchange rate.^[14]
- If you are comfortable with the current exchange rate, then use it to complete the transaction.
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Use a forward contract to lock in a rate. If you need to send a large sum of cash at some point in the future, lock in a favorable rate today with a forward contract. This means that the broker agrees to use a rate upon which you agree today for an exchange that happens in the future. On the date of the exchange, the contract rate is used, not the current exchange rate.^[15]
- You can use this strategy if you think your local currency with weaken before the trade occurs.

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Shop around. Not all services use the same exchange rate. Also, fees vary from service to service. Transaction fees and exchange rate differences add up quickly. Spend some time researching how much it will cost to complete the money transfer using different scenarios.^[16]
- For example, one service may charge you a higher fee but offer a better exchange rate. Look at the total amount the recipient receives. Sometimes paying a higher fee costs less in total because of a favorable exchange rate.
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Consider the size of your transaction carefully. In general, it is less expensive to transfer a large amount once than to transfer several small amounts. However, the fees you incur will be based on the amount you transfer. If you are transferring small amounts, use a service that is designed for small amounts and has appropriate fees.^[17]
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Use your local currency. You will save money if you transfer the money in your local currency and let the recipient exchange the currency. If you try to exchange the currency ahead of time in order to wire funds in the recipient's currency, you will spend more money. For larger sums, however, use a foreign exchange service. They always get the best rates on currency exchanges.^[18]
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Choose a longer time frame. The faster you want the money transferred, the higher the fees you will pay. It is possible to send money within hours or minutes. However, this service can be expensive depending on the amount you are sending. If possible, allow the transaction to take several days or weeks. If you have locked in a favorable exchange rate, you will end up saving money on fees.^[19]

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Question

I'm expecting money from overseas, but I have no bank account. Is there a way to get this money?

Jill Newman is a Certified Public Accountant (CPA) in Ohio with over 20 years of accounting experience. She received her CPA from the Accountancy Board of Ohio in 1994 and has a BS in Business Administration/Accounting.

Financial Advisor

Expert Answer

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Yes, you can receive money from overseas without a bank account. If the sender uses a service like Western Union or MoneyGram, the money can be sent to a physical location near you where you can pick up the cash. No bank account required! All you will need is proper identification.
Question

How do I transfer money from the central bank of Ghana to the US?

Jill Newman is a Certified Public Accountant (CPA) in Ohio with over 20 years of accounting experience. She received her CPA from the Accountancy Board of Ohio in 1994 and has a BS in Business Administration/Accounting.

Financial Advisor

Expert Answer

Support wikiHow by unlocking this expert answer.

You have several options. You can wire money through your bank, or use a transfer service like Western Union or MoneyGram or Xoom. You can also use a foreign exchange service like OFX. In all cases you will need the recipient's banking information for the transfer. Fees will vary and the receiving bank may charge a fee also.

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Article SummaryX

If you need to send money abroad, set up a wire transfer through your bank. To initiate the transfer, gather the person's name, address, and bank account details, as well as the name, address, and routing code for their bank. Then, visit your bank or complete the information on your online banking service before paying the flat fee to send the money. Alternatively, use a remittance service such as Western Union or MoneyGram, but be sure to check the fees you'll have to pay first. For tips on how to keep costs down when sending money abroad, read on!

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