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.
You’ve likely encountered these codes when sending money worldwide. But what are they and how do they help?
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.
Hi,
In order to receive funds from my U.S. e-trade account into australia, e-trade in the US can only transfer funds to a bank account that is in my name. The issue with this is that aussie banks offer poor exchange rates when receiving these funds.
How can I receive funds from e-trade at more competitive exchange rates?
Regards
Colin
Hi Colin,
Thanks for your question.
If you want to earn a more competitive exchange rate, you could use a cash account that earns a competitive interest rate. The rate is more competitive depending on the amount you wish to deposit. Visit https://invest.etrade.com.au/InvestmentProducts/Cash/Default.aspx to find out more.
I hope this helps,
Harry
An American friend is about to send me some money. She will send US dollars, can I receive it in US dollars as we are about to go overseas and will need US dollars.
Hi Theresa,
Thanks for your question.
If your American friend sends money to your Australian bank account, the funds will automatically exchange to AUD as your bank account can only hold AUD.
You may want to consider a multi-currency account – or asking your friend to hold the money in USD cash.
Hope this helps.
I recently made a payment from INDIA to a commonwealth bank of Australia account.But when my bank transferred the funds it did via ANZ Bank. The funds were transferred to ANZ bank from where it was transferred to the beneficiary account at commonwealth
What my question is what would be the charges applied for the remittance
Hi Wilson,
Thanks for your question.
Generally the fees charged should be the fees involved with transferring from your Indian Bank to ANZ, as the transfer from ANZ to CommBank should be free of charge.
For more information, please speak to the Indian Bank that processed the transfer for you.
Cheers,
Shirley
For migrants moving to Australia, generally, What are the tax implications of
1. Sending funds across before we moved?
For many migrants, we would be liquidating assets in our home country and moving it across to Australia.
2. Receiving regular funds from overseas after we move?
Thank you
Hi Vee,
I’ve sent you an email to follow up with this enquiry.
Thanks,
Belinda
Hi, I have a similar question as Vee in July 2015. However, he got his reply by email, perhaps you can share it here?
For migrants moving to Australia, generally, What are the tax implications of
1. Sending funds across before we moved?
For many migrants, we would be liquidating assets in our home country and moving it across to Australia.
2. Receiving regular funds from overseas after we move?
Thank you
Hi Kat,
Thanks for your question.
Tax implications sending funds across before we moved
There are no tax implications for receiving funds here in Australia. However, your home country may have tax regulations in place that implicates you.
Receiving regular funds from overseas after we move
Unless the income is from an employer, there are generally no tax implications.
Hope this helps.
Je dois envoyer de l’argent sur un compte chez vous.
Il me manque votre SWIFT.
Veuillez me le communiquer. svp.
Avec mes meilleures salutations.
Hi René,
Thanks for your question.
Please note that finder.com.au is an online comparison and information service and is not a product issuer. You’ll need to speak to the institution directly to obtain their SWIFT code.
Cheers,
Shirley