01 / SEND
You initiate the transfer
You provide the recipient details, amount, destination and payment method required by the provider.
INTERNATIONAL MONEY
How international money transfers actually work.
Sending money across borders is more than pressing send. The route, currency conversion, transfer fees and receiving institutions can all affect what happens to the money.
THE TRANSFER JOURNEY
From sender to recipient.
An international transfer can pass through several financial institutions before the recipient receives the funds. The exact route depends on the provider, currencies, destination and payment method.
02 / PROCESS
Provider processes it
The sending provider processes the payment and may convert the funds into the recipient currency.
03 / ROUTE
Financial institutions move it
Depending on the transfer, intermediary or correspondent institutions may participate in moving the payment.
04 / RECEIVE
Recipient gets the funds
The beneficiary receives the funds through the selected bank, wallet, cash-pickup or other supported method.
The transfer path varies by provider and corridor. SAMA describes international transfers as potentially involving payer and beneficiary institutions as well as correspondent banks.
WHERE THE COST COMES FROM
A “low fee” does not tell the whole story.
The economic cost of a transfer can come from several places. Compare the complete transaction rather than looking at one advertised number.
01 / TRANSFER FEE
Explicit provider fee
The provider may charge a stated fee for sending the transfer. The amount can depend on the destination, amount, payment method and service.
02 / EXCHANGE RATE
Currency conversion cost
When money is converted, the exchange rate used for the transaction can affect how much reaches the recipient. A provider can incorporate a spread or other conversion cost into its rate.
03 / THIRD PARTY
Intermediary or receiving fees
Some transfer routes can involve other financial institutions. Depending on the route and applicable rules, additional charges may affect the amount received.
04 / TAXES
Taxes and local charges
Taxes or other charges can apply depending on the countries and transaction structure. Check the final quote and recipient conditions.
FINMAXER TRANSFER MODEL
Think in terms of the recipient amount.
A useful comparison starts with the amount you send and works through every cost and conversion before arriving at the amount the recipient is expected to receive.
Amount sent
− fees + exchange-rate effect
= expected recipient amount
BEFORE YOU SEND
Check these six numbers.
Use the provider's final quote rather than relying on an advertisement or headline fee.
Amount you pay
How much will leave your account or payment method?
Transfer fee
What explicit fee is being charged for this transaction?
Exchange rate
Which rate is being applied to the currency conversion?
Amount received
How much is the recipient expected to receive in local currency?
Delivery timing
When is the money expected to become available?
Conditions
Are there limits, promotions, payment-method restrictions or other conditions?
For Saudi consumers, SAMA's consumer-protection principles state that applicable international-transfer fees and expected arrival information should be communicated before completion. Exact requirements can depend on the transaction and provider.
FINMAXER TOOLS
Calculate before you choose.
Use the quoted fee and exchange rate from a provider to compare the economics of a real transfer.