Whether it's a gift from friends or family living abroad or an international payment, here's a simple guide on receiving money from overseas and the cheapest ways to do it.
1. Provide your bank details
You'll need to give the sender the following information in order to receive money:
2. Track the payment
Depending on how the sender is transferring the money, you may be able to track the payment via a unique number, such as a money transfer control number (MTCN) in the case of Western Union.
3. Check your account
Once the payment has been confirmed, you can check your account to make sure the money has arrived correctly.
While it may depend on the options that are available to the person sending you the money, there's a number of ways to make an international payment that can help save on fees and mean you end up with more money in your account:
Money transfer specialists such as OFX and Wise are one of the cheapest options for receiving money from abroad.
Unlike banks, these services typically don't charge customers to receive a payment. Once the money has been received, you can either keep it in your account or move the money back to your bank account.
On average, international transfers take 1-3 business days. You can use our comparison table to find a money transfer company that suits your needs before you receive your transfer.
Wire transfers are the most popular way to receive money but you pay extra for the convenience. Also known as a telegraphic transfer or a bank-to-bank transfer, it involves sending money from a bank overseas to your bank account in Australia.
International wire transfers often get charged fees on both ends of the transaction, so tend to work out as an expensive option.
For example, ANZ charges up to $15 to receive an international payment. Bank transfers can take 2-5 business days.
Western Union, Remitly and MoneyGram are among the most common ways to receive cash. You will need to visit a money transfer agent in person to collect the cash.
Another option is going to your local 7-Eleven or Australia Post as they have both partnerships with MoneyGram and Western Union. Money can be received instantly but the exchange rates are weaker as a result
PayPal is a trusted brand for digital payments, particularly for small transfers. Despite being convenient, PayPal charges extra fees for receiving money.
However, the platform's quick transfers make it appealing to users. PayPal is available in over 200 countries and supports 25 currencies.
An international money order works the same way as a domestic money order and allows you to prepay an amount that will be used as a secure form of payment.
It is a physical document, similar to a check, which can be purchased from a bank or post office. Money orders typically have a limit on the maximum amount you can transfer and may come with additional fees.
Of all the options we've outlined above, the cheapest method for receiving money from abroad is to use a dedicated money transfer service.
Not only do international money transfers arrive quicker than other options, they'll also generally offer the best currency conversion rate and lowest overall fees.
| Response | 75+ yrs | 65-74 yrs | 55-64 yrs | 45-54 yrs | 35-44 yrs | 25-34 yrs | 18-24 yrs |
|---|---|---|---|---|---|---|---|
| No | 58.62% | 66.86% | 73.26% | 71.5% | 64.97% | 66.06% | 58.76% |
| Yes | 41.38% | 33.14% | 26.74% | 28.5% | 35.03% | 33.94% | 41.24% |
The process may differ depending on the service provider used to send the funds.
With some money transfer services, you need to request the transaction reference number from the sender and present the number along with your identification documents. You may also be required to fill out a receive form to access your funds.
With online transfers, the funds are deposited into your account, after which you can withdraw them. You can also receive funds through a prepaid card or mobile wallet.
While most fees are incurred by the sender, your bank may charge a fee for processing and depositing the money you have received from overseas.
It is also worth keeping in mind you could be required to pay intermediary fees. Intermediary banks act as the 'middleman' through which money passes when transferring between two financial institutions.
As a result, they take a small fee from the funds being transferred. This is separate to the fees charged by banks or money transfer services.
The amount you receive in the end may be less than expected if the sender doesn't pay the currency exchange rate at the beginning of the transaction.
Most banks and money transfer providers will quote an exchange rate that's higher than the mid-market rate, otherwise known as the midpoint between the buy and sell prices. This markup is also known as a margin, which is how these companies make a profit.
The exchange rate margin is often the reason why there is a difference between the amount that is sent and the amount that is received. Small differences can put a big dent in the amount you actually receive, especially when receiving larger amounts of money.
We currently don't have that product, but here are others to consider:
How we picked theseWe review money transfer providers for different features to assign them a score out of 10. The higher the score, the more competitive the product.
The steps you need to follow to open a UK bank account as an Australian.
Find out whether Revolut is the right choice when you need to send money overseas.
To find the best rate for your next money transfer, check out our comparison of the fees, exchange rates and transfer speeds of Western Union and MoneyGram.
Compare Revolut with Wise on speed and cost to see which is best for your next money transfer.
Wise can help you make a fast, secure transfer at the mid-market rate.
Read our review of OFX and see if it’s right for your next international money transfer.
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Read our detailed review of OrbitRemit international money transfers, including exchange rates, fees, payment methods and safety.
We go into detail on MoneyGram's fast transfers to 200+ countries and territories worldwide.
Check out our comprehensive review of CurrencyFair international money transfers, including fees, exchange rates, security and transfer times.
Just wondering if the receiver can receive the same currency as the sender.
Hi Sophie,
Thanks for your question.
Yes, same currency transfer is possible. Please read our foreign exchange guide to know how it works.
Cheers,
Anndy
Hello, I will be moving to Australia from India very soon and will need to transfer funds for the initial period. One of my major concern is the charges for incoming wire transfer charges by Australian banks. There does not seem to be one clear figure they charge, it seems to vary due to tie-ups. How can I get information about incoming wire transfer charges?
Are there any Forex services which do a local bank transfer thus avoiding the incoming wire transfer charges.
Thanks.
Hi Prabha,
That is a great question.
Unfortunately, you are correct – the fees charged by each bank vary. That’s one reason some people prefer to use dedicated foreign exchange companies over banks. You can, however, look into using an international bank such as Citibank and ING Direct. Generally, international banks offer better deals on money transfers and there are some conditions that apply. For example, Citibank offers free global transfers between Citibank accounts in specific countries.
Your other option is to use a dedicated foreign exchange service. Our page, Free Money Transfers, might help you. You can use the comparison table to compare exchange rates. However, there may be fees applied from the receiving bank. You may also want to consider our Moving to Australia Guide and our Migrant Banking Guide.
Regards,
Clarizza
Hi I am currently working in California for 3months my pay will go into a western union acct can someone in Australia open an acct for me? And can I then transfer it to a.n.z. or commonwealth acct? As I don’t want to fly home with a bit of cash
Thanks
Hi Leonie,
Thanks for your question.
You can set it up so someone in Australia can pick up the cash for you at a Western Union kiosk. They can, then, deposit it into your bank for you.
Alternatively, you may want to consider an international money transfer service and have the funds directly deposited into your bank account here in Australia. This eliminates the need for someone to pick up the cash.
I hope this has helped.
Hi. Do you have a physical office in Thailand ?
Hi smngrffth,
Thanks for your question.
Regarding your question, I’m we don’t have any offices in Thailand.
If you wish, you can check Western Union, which has a number of kiosks available in Thailand.
Regards,
Joshua
Hi i am moving back to melbourne, and i will have a large sum of money transferring back to australia(over a mil AUD). so i don’t trust these small transfer bank. So which is the best rate for bank? st george, westpac, commonwealth, or anz? thanks.
Hi Michael,
Thanks for your question.
Please note that the international money transfer services that we list are regulated in Australia by ASIC under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 and is regulated by the Australian Transaction Reports and Analysis Centre ‘AUSTRAC’.
The exchange rates will depend on the currency you’re transferring from, so we’re unable to tell you immediately which bank is “best”. Please compare Westpac rates, CBA rates and ANZ rates.
Regards,
Shirley