How to Send Money to Other Countries Cheaply

The choice of options for sending money abroad is huge: Money transfer offices, banks, train station counters, and app-based services all compete for customers.

Fees, currency exchange rates, and transfer times vary hugely between service providers. Specialized online service providers and mobile services from money transfer services are often cheaper than cash-based transfers and bank transfers.

Expatriates, in particular, are very likely to send money back to their home countries. According to estimates, expats in Switzerland send around seven billion francs back to their home countries every year. Additionally, many Swiss companies regularly transfer money abroad to pay foreign suppliers.

How can I send money to other countries?

Most people in Switzerland have bank accounts. But in many countries, personal bank accounts are not as widely used as they are in Switzerland. In many Asian, African, and Latin American countries, on the other hand, many people use mobile wallets.

Depending on whom and where you want to send money to, you can choose between these options:

• Bank transfers: If the recipient has a bank account.
• Remittance services (money transfers): You send the money from an office and the recipient collects it at a money transfer office or partner outlet.
• Mobile wallet: In countries where mobile wallets are widely used, you may have the option of transferring money directly to the recipient's mobile wallet.
• Credit cards: For transfers between certain countries, it is possible to send money to a credit card, prepaid card, or debit card.

Which service providers in Switzerland offer international money transfers?

Numerous companies offer international money transfer services.

• Banks: Nearly all Swiss banks let you send money from your private account or current account to a foreign bank account.
• Train stations: In collaboration with Western Union, the SBB/CFF and other Swiss railways (like the BLS and the Rhätische Bahn) offer international money transfers at ticket office counters and on ticket vending machines.
• Money transfer agencies: International remittance service providers like Western Union, Moneygram, and Ria, work with local money transfer outlets in numerous countries. You can send money abroad and receive money from other countries at these outlets.
• Neobanks: Some online-only banking service providers like Wise and Currencyfair specialize in international money transfers. In most cases, the recipient must have a bank account, but some neobanks also offer transfers to mobile wallets.
• Credit card issuers: Some credit card issuers give you the option of sending money from your card to the debit or credit card of a recipient in a foreign country.

How long does it take for the money to get to the recipient?

There are major differences in the time it takes before the person can collect the money. When you send money with money transfer services like Western Union, Moneygram, and Ria, the money is ready to be collected by the recipient within minutes. Money sent to a mobile wallet or bank account can also be completed within minutes if the recipient’s bank supports instant payments and the service provider is connected to the relevant network.  

Bank transfers from a Swiss bank account to a foreign one can take much longer. The transfer is relayed through one or more correspondent banks before the money is credited to the recipient's account. You should count on several days for bank transfers within Europe. Bank transfers to other continents can take as long as one to two weeks.

How much does sending money to other countries cost?

The differences are very large. Most Swiss banks do not charge any fees for SEPA bank transfers to participating European countries. Some banks charge a small fee of up to 1 Swiss franc per transfer. This only applies to transfers that meet the criteria for SEPA transfers (more on this below).

For other international bank transfers, many Swiss banks charge between 4 and 5 francs per transfer. But the fees charged by third-party service providers involved in the transfer come on top of that. Some Swiss banks charge an addition flat fee (typically 20 francs) on top when you choose to cover all the fees yourself (the OUR option). When you use the OUR option, the recipient does not have to pay any fees, and receives the full amount of money you send.

Money transfer services, whether brick-and-mortar or online, each have their own fee schedules. Some are generally cheap, and others are generally more expensive. The fees vary depending on which country you are sending money to, which currency the recipient will receive it in, and on the currency exchange rates used. The fees are generally higher if you pay in the money in cash and/or the recipient collects the money in cash.

Where can I get a good exchange rate?

Many consumers do not pay attention to currency exchange rates when making international money transfers. That is a mistake, because depending on which country and currency you are sending to, the differences between service providers can be huge.

Many service providers earn substantial profits by using unfavorable currency exchange rates. The markups that many money transfer service providers add to currency exchange rates can add a substantial cost on top of the fees shown.

Banks and many other service providers are not able to you the exact exchange rate in advance. But there are more customer-friendly service providers that use a guaranteed exchange rate for the money transfer.

What should I know about international bank transfers?

Transferring money from your regular bank account is convenient, but it can be much more expensive than sending money with specialized money transfer services.

In an international bank transfer, the money is deducted directly from your private account, business account, or current account, and is transferred to the recipient’s bank account. Swiss banks differentiate between SEPA transfers and other international bank transfers (often called non-SEPA transfers).

SEPA transfers are often the best option for transfers to many European countries. Many Swiss banks do not charge fees for these.

Make sure to follow the criteria for SEPA transfers:

• The currency for the transfer must be euros, regardless of which currency yours and the recipients bank accounts are denominated in.
• You must use to share the cost of the transfer between you and the recipient (the SHA option).

The recipient’s bank account must be hosted in a SEPA member country.

For non-SEPA international transfers, you can choose between three options for paying the transfer fees: The OUR option (the sender pays the transfer fees); the SHA option (fees are split between the sender and recipient); and the BEN option (the recipient pays the transfer fees).

What should I know about money transfer services?

The best-known remittance services in Switzerland are Western Union, Moneygram, and Ria. Transfers with Western Union can be made at Swiss train stations run by the SBB/CFF and some other railways.

The classic service offered by remittance companies is that you can pay in the money you want to send in cash. The recipient in a foreign country can collect the money in cash within minutes at a local partner outlet near them.

Today, remittance service providers also offer mobile apps that you can use to make transfers, with the recipient collecting the money at an outlet near them. Depending on the service provider, you may also be able to transfer money to a bank account, a mobile wallet, or a debit or credit card.

What should I know about neobanks and money transfer apps?

Some neobanks specialize in international transfers. UK-based neobank Wise is a good example of this. Wise is also used for international transfers by Swiss neobanks Neon and Yapeal. Currencyfair, an Ireland-based peer-to-peer money transfer service, is another alternative.  

Many of these service providers use favorable currency exchange rates and have low fees. The disadvantage is that there are many countries which you cannot send money to with these online services.

Some neobanks do not charge you for transfers to other users of the same neobank, even those in other countries. That is the case with Wise and Revolut, for example. The disadvantage is that these neobanks are only available to residents of a small number of countries.

What should I know about sending money to mobile wallets?

In some countries, many of which are in Asia and Africa, mobile wallets are widely used. These can be used to send and receive money, and to make payments.

Swiss Bankers, Western Union (including the Western Union app), and Wise all have the option of sending money to mobile wallets. Each money transfer service has its own list of supported mobile wallets in each country. It can be beneficial to get informed about options from different money transfer services.

What should I know about sending money to debit and credit cards?

Card issuer Swiss Bankers and money transfer service Western Union (including the Western Union app) give you the option of sending money that is received as a statement credit on the recipient’s debit card or credit card. This lets you send money directly to the Mastercard cards of people in certain countries.

What is the cheapest way to send money to other countries?

There is no general answer to that question. The cheapest money transfer services vary depending on which services you want and on which country you are sending money to.

Here are the most important tips for minimizing the cost of sending money to another country:

• If it is possible to transfer the money to a bank account or mobile wallet using Wise, then this is often the most affordable option. Wise is known for having low fees and favorable exchange rates. However, there are many countries which you cannot send money to using Wise.
• Check how much remittance services like Western Union charge for transfers when you make them online and transfer the money to a bank account, mobile wallet, or card number in the foreign country. In some cases, the fees can be relatively low, and the currency exchange rates are average. Some remittance service providers let you send money to the vast majority of countries.

International bank transfers from conventional Swiss private accounts are typically expensive, use unfavorable exchange rates, and take a long time to reach the recipient’s account. Classic remittance services which enable the recipient to receive the money in cash are very fast, but are often relatively expensive, and typically use unfavorable exchange rates.

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