How to Send Money From Israel to the USA

Sending money from Israel to the United States is common for individuals, families, and businesses. This guide details available methods and processes for efficient international money transfers.

Available Transfer Methods

Several reliable methods exist for transferring funds from Israel to the United States. Traditional bank wire transfers move money directly between bank accounts, offering security for larger sums and a clear audit trail.

Online money transfer services, such as Wise, Remitly, Xoom, and Paysend, offer a faster alternative. These digital platforms facilitate cross-border transactions directly to recipient bank accounts, often with competitive exchange rates and lower fees than traditional banks. They are accessible via user-friendly websites or mobile applications.

Specialized remittance services may offer cash pickup options. These are useful for recipients without bank accounts or who prefer cash. Cryptocurrency transfers are an emerging method, enabling digital asset transfers convertible to traditional currency. While fast, their complexity and evolving regulations make them less common for general users.

Information Required for Transfers

Before initiating a money transfer, the sender must provide their full legal name, address, contact details, and valid identification (e.g., passport or national ID). For larger transfers, financial institutions may require documentation proving the source of funds to comply with anti-money laundering regulations.

Accurate recipient information is equally important. This includes the recipient’s full legal name, address, contact details, bank name, bank address, SWIFT/BIC code, and IBAN or full account number. This banking information routes the transfer through the international banking system.

The purpose of the transfer must often be stated, such as family support, educational expenses, gifts, or payment for services. A clear purpose assists financial institutions in fulfilling regulatory requirements and processing the transaction. Supporting documents like proof of address may be requested for initial setup or transactions exceeding certain thresholds.

Understanding Transfer Costs and Exchange Rates

International money transfers involve various financial considerations. Transfer fees can be a flat fee or a percentage of the amount sent. Intermediary banks and the recipient’s bank in the United States may also charge fees, ranging from a few dollars to tens of dollars per transaction.

Exchange rates play a significant role, determining how much Israeli New Shekels (ILS) convert into US Dollars (USD). The interbank rate is the wholesale rate banks use, but consumers receive a retail exchange rate. This retail rate includes a markup, often 0.5% to 5% of the transaction value, which is a primary revenue source for providers and affects the recipient’s amount.

This exchange rate markup is often a “hidden cost,” embedded within the conversion rate rather than presented as a separate fee. A “fee-free” transfer might still result in less money reaching the recipient due to a less favorable exchange rate. Understanding the total cost, combining explicit fees and the implicit exchange rate margin, is important for evaluating the true expense.

Executing the Transfer

Executing the transfer involves several steps depending on the chosen method. For online services, the sender creates or logs into an account, selects the destination country, specifies the amount, and inputs recipient details. They then select a payment method (e.g., direct debit, credit card, debit card) to fund the transfer. After reviewing the summary, the sender confirms.

Initiating a wire transfer at a bank branch involves visiting a teller and providing sender and recipient details. This requires completing bank forms and authorizing payment with a signature. The bank processes the request through the SWIFT network. Funding methods include direct debit from the sender’s bank account or cash deposits at agent locations.

After initiation, the sender usually receives a confirmation or tracking number. This allows monitoring the transfer status and provides an estimated delivery time. The recipient may also be notified when funds are available or credited.

Compliance and Reporting Considerations

International money transfers are subject to legal and regulatory frameworks ensuring financial transparency and combating illicit activities. Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations require financial institutions to verify sender and recipient identities and monitor transactions for suspicious patterns. This necessitates collecting detailed personal and financial information.

For U.S. recipients, large transfers may trigger reporting obligations to the Internal Revenue Service (IRS). Gifts from a foreign individual or estate exceeding $100,000 in a calendar year must be reported on IRS Form 3520. This form is informational and does not typically impose a tax, but penalties apply for failure to file. For gifts from foreign corporations or partnerships, the reporting threshold is lower, adjusted annually.

U.S. businesses receiving cash payments over $10,000 in a single or related transaction must report them on FinCEN Form 8300. “Cash” includes physical currency and certain monetary instruments. The Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions to report information about U.S. persons’ financial accounts to the IRS, enhancing transparency. Senders should retain transaction records, including receipts and confirmation numbers.