How to send money overseas from the UK?

Looking to send money overseas from the UK? The process of transferring money from the UK involves selecting a reliable and trustworthy transfer method, understanding currency exchange rates, and being aware of any transaction fees.¹

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

In this guide, explore some of the potential ways to send money abroad from the UK.

How do international money transfers work?

Regardless of the method, sending money abroad from the UK may involve the following factors:

• Currency exchange: When sending money abroad, funds are generally converted from UK pounds to the currency of the recipient's country. This conversion is based on daily foreign exchange rates, which fluctuate due to market conditions.
• Transfer fees: Many transfer services charge a fee for each transfer, which can be a flat rate or a percentage of the transfer amount.
• Transfer methods: There are several ways to send money overseas, including bank transfers, online money transfer services, and wire transfers. Each method varies in terms of speed, cost, and convenience.
• Recipient details: Accurate recipient information, including bank details and personal information, is necessary to process a transfer.
• Regulatory compliance: Transfers must comply with financial regulations, including anti-money laundering laws. This may require additional documentation or verification steps.²

Ways to send money abroad

There are several potential ways to send money overseas from the UK. Each may suit different requirements depending on the amount of money involved, transfer speed, fees, and more.

Bank or SWIFT transfers

Bank transfers — including the globally recognised SWIFT system — are commonly used for international money transfers. They are particularly favourable for large sums due to their security standards. The process involves banks communicating through the SWIFT network to facilitate transfers.

While this method is considered secure, it may take several days for money to transfer and involve various fees.

Debit card transfers

Known for speed and ease of use, debit card transfers usually involve a direct cash transfer from one's bank account to an international recipient through an online platform.

Be aware of potential fees for currency conversion and the transfer itself, which can accumulate in frequent or large transactions. Not all services may offer competitive exchange rates, which can impact the final amount received.

Credit card transfers

Using a credit card for an international money transfer may be suitable when immediate transfer is a priority. This can be an expensive option due to high cash advance fees and interest rates that accrue from the day of the transfer.

Payment Initiation Service Providers (PISP)

Payment Initiation Service Providers may offer competitive exchange rates and low fees, especially for medium-sized transfers. PISPs operate online, typically offering user-friendly interfaces and fast transfer times compared to traditional bank transfers.

However, fees and exchange rates can vary based on the destination country and amount, so it's essential for senders to review these details before proceeding with a transfer.³

Is sending money abroad safe?

Sending money abroad from the UK is usually safe, provided certain precautions are taken. It's important to use a reputable, regulated money transfer service with strong security measures like encryption and fraud monitoring.

Other essential safety practices include staying up-to-date on common scams and how to avoid scams when paying and transferring money.

Choosing how to send money overseas

With each method to send money abroad, there may be advantages and disadvantages. Here are some factors to consider:

• Cost and fees: Compare transaction fees and exchange rates offered by different services.
• Transfer speed: Consider how quickly the funds need to reach a recipient.
• Transfer amount: Large sums may be better suited for methods like bank transfers, while small amounts could benefit from the speed of debit or credit card transactions.
• Destination country: Ensure the chosen method operates in the recipient's country. For example, PayPal offers a comprehensive list of the countries it supports.

Learn more about sending money online.