Sending money between the USA and Europe: an overview

When you send money to the USA or make an international transfer from the USA to Europe, it pays to understand the process and how long it takes. The timing of an international transfer from the USA can vary depending on the bank and the transfer method you choose. Within Europe, a SEPA transfer is the standard way to move money quickly and cheaply across the SEPA area. Many banks also offer online banking, so customers can make transfers from home. The exact timing, however, depends on several factors, such as the banks involved and any currency conversion.

If you want to send money from the USA to Europe, you have several options. The most common are a bank transfer or a money transfer service such as Western Union or PayPal.

Bank transfers

A bank transfer is the most widely used way to send money from the USA to Europe. The American bank sends the money straight to the recipient's account at their European bank. That said, transfer fees can be high and exchange rates poor. Keep in mind, too, that the recipient usually has to pay a fee to receive an international transfer. 

Practically every major bank offers several ways to send money to the USA, both online and at a branch. Bear in mind, though, that while these banks offer instant transfers to euro accounts, an instant transfer to the USA usually isn't possible. Money transfer services are a better option here.

Money transfer services

Money transfer services such as Western Union or PayPal can be a faster, more convenient way to send money from the USA to Europe. The sender sends the money to the recipient, who can then collect it in cash or receive it in their bank account. Here, too, fees can be high and exchange rates unfavorable. The Western Union fee calculator is very helpful here, showing you the amount and transfer time right away.

Can you send money from the USA to Europe?

Yes, you can send money from the USA to Europe. There are several ways to do it, including bank transfers, money transfer services such as Western Union and PayPal, and alternatives such as cryptocurrencies like Bitcoin or Ethereum.

What does a transfer from the USA to Europe cost?

The cost of a transfer from the USA to Europe depends on several factors, such as the bank, the amount, the currency and the transfer fees.

Banks usually charge a fee for international transfers, and the amount varies from bank to bank. On top of that, you may pay currency conversion fees if the money has to be converted. These fees also vary depending on the bank and the exchange rate.

For exact figures on the cost of a transfer from the USA, it's best to ask your bank directly about the specific fees. It can also help to compare different banks and online payment services to find the cheapest option.

Transfer times: how long does a transfer from the USA to Europe take?

A transfer from the USA to Europe usually takes between 2 and 5 business days, depending on factors such as the bank, the amount, the currency and the type of transfer service.

While conventional transfers can take a few days, some services now also offer instant payments, meaning real-time transfers. 

Going the other way, a transfer to the USA plays by different rules: the dollar world has neither SEPA nor IBAN, the recipient's US bank needs different details than a European one, and depending on the amount, authorities may require reporting. Here are the three routes, the recipient details and the timing.

Three routes: SWIFT through your bank, Wise, your own US account

SWIFT through your bank. International transfers outside the SEPA area run over the SWIFT network. You set it up in online banking as an international transfer in US dollars, and your bank routes it through correspondent banks to the recipient's US bank. Costs can come from up to three sides: your bank's fee, possible deductions by intermediary banks and a markup on your bank's exchange rate. Often you only see what actually arrives once the money is credited. On the plus side, this route also works for large amounts, for example when buying property or funding your US company, without a payment provider's limits.

Wise and similar providers. These services convert at the mid-market rate and show you the fee before you send, so you know the dollar amount the recipient will get. Technically, you pay euros or francs into the provider's account in Europe, and the provider credits the dollars to the recipient via a domestic US transfer (ACH or wire). Wise says most transfers arrive within a day. For regular payments to family, landlords or service providers, this is usually the cheapest route; for very large amounts, the providers' limits and checks kick in, and you're back to the bank.

Your own US account. If you pay into the USA regularly, say rent, taxes, tuition or investments, a two-step approach works best: first move dollars into your own US account, then pay on from there by domestic US transfer, check or card. You choose when to convert, bundle several payments into one transfer and usually pay nothing more within the USA. How to get a US account as an individual is explained in our article on opening a US bank account without an SSN; for your US company, see account opening and banking for your US company.

What the recipient's US bank needs

US accounts have no IBAN. Bank of America states on its international transfers page that the USA does not take part in the IBAN system, so its accounts have no IBAN. Instead, you need five details, exactly as the receiving bank lists them in its incoming wire instructions:

1. The recipient's name and address, exactly as held by the bank

2. Account number

3. ABA routing number: the US bank's identifier for domestic payments (ACH and Fedwire), printed on every US check and shown in every online banking portal

4. SWIFT code (BIC) of the receiving bank for the international transfer; some banks list different SWIFT codes for dollar and foreign-currency payments, so always use the one for payments in US dollars

5. Name and address of the receiving bank, plus a payment reference so the bank can match the credit

With Wise, you also enter the account type (checking or savings), because the credit runs as a domestic US transfer. Always have the recipient send you the details as a copy of their bank's instructions. A typo in the routing number costs days, because the transfer gets stuck at an intermediary bank and comes back minus a fee.

How long the transfer takes

Plan on a few banking days for a SWIFT transfer to the US. Bank of America quotes one to five business days for the journey to the US and credits incoming international wires within one to two business days. European banks also point out that transfers outside the EU are not subject to the statutory deadlines that apply to SEPA payments, so in individual cases they can take two weeks. Things that slow a transfer down: your bank's cut-off times, weekends, US public holidays, the currency conversion, and questions about the source of funds on larger amounts. With Wise, typical amounts usually arrive the same day, because the dollar credit runs as a domestic transfer.

Reporting requirements and limits

There is no cap on how much you can send to the US, but depending on the country and the amount, reporting requirements can apply. These are purely statistical or tax filings, not approvals.

Switzerland. The Swiss National Bank's statistical surveys are aimed at companies and legal entities. Private individuals do not report individual payments abroad.

USA. The transfer itself does not trigger any US tax. Still, there are three things you should know. First, under the Bank Secrecy Act, US banks and payment providers record every transfer of $3,000 or more with the sender's and recipient's details; questions about where larger amounts come from are routine, not suspicion. Second, a recipient who is a US person must report gifts from foreign individuals if they exceed $100,000 in total in a year (Form 3520 with the IRS, a pure reporting filing with no tax). Third: if you are a US person yourself, for example with a green card, and send money from your account in Europe, that account belongs in your FBAR as soon as all your accounts outside the US together reach more than $10,000. How this fits together and what applies to you is something we clarify in a US tax consultation.

Moving money between the US and Europe can get complicated because of currency conversion, transfer fees and different national banking rules. If you want to send money from the US to your home country or the other way round, look carefully at the options so you pick the cheapest and most convenient method. Whichever method you choose, compare fees and exchange rates to find the best deal.

Can I send money to an American account?

Yes, you can send money to an American account. To do so, you usually need the recipient's bank details, including the account number, the bank name, the bank address, the routing number and, where applicable, the SWIFT or BIC code.

How do I send money from Europe to the US?

There are basically two ways to send money from Europe to the US: through a bank or through an online payment service.

How long does a transfer from Europe to the US take?

A transfer from Europe to the US usually takes between 2 and 5 business days, but it can take longer, especially when the money has to be converted between currencies or when the banks have different processing times.

How long does an instant transfer take?
The time an instant transfer from Europe to the US takes can vary and depends on several factors, including the banks and payment providers involved and the day and time the transfer is made, but it is usually less than 20 seconds.

How much does a transfer to the US cost?

The cost of a transfer from Europe to the US depends on several factors, such as the bank, the amount, the currency and the type of transfer service. You can find a fee comparison for international transfers here, for example.

Do US banks have an IBAN? What is the IBAN in the US?

No, the US has no standardized International Bank Account Number (IBAN) system. Instead, US banks generally use a combination of the routing number and the account number for domestic transfers.

For international transfers, US banks often use a combination of the routing number and the SWIFT code (BIC). The SWIFT code is an international bank identifier used to make transfers between banks easier.

What details do I need for a transfer to the US?

To send money to the US, you need the following information:

1. Recipient's name

2. Recipient's account number (US account numbers have 10 to 12 digits)

3. Name and address of the recipient's bank

4. Routing number of the recipient's bank (a 9-digit number, also called a transit number or ABA number)

5. SWIFT or BIC code (for international transfers)

It can also help to add a payment reference so the money is matched correctly. If in doubt, always ask your bank directly what it needs for an international transfer.

How do I send money to the US cheaply?

There are several ways to send money to the US at low cost. Here are a few tips:

1. Compare fees: Banks and online payment services charge different fees for transfers to the US, so it pays to compare and pick the cheapest provider.

2. Use online transfer services: Services such as Wise (formerly TransferWise), PayPal or Xoom often offer lower fees and better exchange rates than traditional banks.

3. Avoid credit cards: When sending money to the US, avoid using a credit card, as fees are often high.

4. Pick the right moment: Exchange rates change from day to day and even hour to hour, so it can make sense to wait for a good rate.

5. Avoid multiple transfers: Several small transfers can cost more in fees than one larger one.

Keep in mind that the fastest or cheapest option is not always the best. Always make sure the provider you choose is reliable and secure and that the transfer meets the recipient's needs.

Can I send money to the US with PayPal?

Yes, you can send money to the US with PayPal. PayPal is one of the most popular online payment services and lets you send money to many countries, including the US.

To send money to the US with PayPal, all you need is the recipient's email address. The recipient needs a PayPal account to receive the money.

In a personal consultation we can answer all your questions and find the right solution for your situation. You will find plenty of useful information on US topics on our website. Whether you need a bank account for your US company, advice on tax questions about your income in or outside the US, company formation, visa questions or many other topics: Mount Bonnell Advisors supports you with every request. You will find more articles like this one in our News.

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