How to Send Money From Peru to the USA

Sending money internationally has become a common necessity, connecting families and supporting various financial needs across borders. For individuals looking to transfer funds from Peru to the United States, navigating the available options can appear complex. This article aims to clarify the process, providing a comprehensive guide to successfully send money from Peru to the USA.

Understanding Your Options for Sending Money

Several channels exist for international money transfers, each with distinct features and benefits. Traditional banks offer a long-standing method for sending funds internationally through wire transfers, often utilizing the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. These transfers are generally considered secure but can involve higher fees and longer processing times compared to other options.

Alongside banks, online money transfer services have gained significant popularity due to their convenience and often more competitive rates. Digital platforms like Wise, Remitly, Xoom (a PayPal service), and Paysend allow users to initiate transfers via websites or mobile applications. These services typically facilitate bank-to-bank transfers, with some offering additional payout methods.

Traditional money transfer agents, such as Western Union and MoneyGram, provide a widespread network of physical locations in Peru. These services are particularly useful for cash-based transactions, allowing senders to deposit cash in Peru for pickup as cash in the USA. They also offer online sending options, combining digital convenience with physical pickup points.

Factors to Consider Before Transferring Funds

Before initiating a transfer, evaluate several factors to optimize the process. Fees and exchange rates are primary considerations, directly impacting the amount the recipient receives. Transfer fees can be structured as fixed charges or a percentage of the amount sent, and these vary significantly between providers. Additionally, the exchange rate offered by a service might differ from the interbank rate, with some providers applying a markup that effectively acts as a hidden cost. Compare the total cost, including both the fee and the exchange rate margin, to determine the most economical option.

Transfer limits are another important aspect, as services impose daily, weekly, or monthly restrictions on the amount of money that can be sent. These limits can vary based on the provider, the sender’s verification level, and the destination country. Transfer speed also plays a role, with some methods offering near-instant delivery, especially for cash pickups or certain online transfers, while bank-to-bank transfers can take several business days. Security and reliability are important; choosing regulated and reputable services that employ encryption and fraud prevention measures helps protect funds. Finally, convenience, including the ease of using an online platform or the accessibility of physical agent locations, influences service choice.

Information and Documentation Needed for a Transfer

Gathering the necessary information and documentation beforehand is a preparatory step that streamlines the transfer process. Senders must provide their full legal name, current address, contact details, and a valid form of identification. Acceptable identification includes a Peruvian DNI (Documento Nacional de Identidad), Carné de Extranjería, Peruvian Police or Military Identification, or a passport. This information is crucial for compliance with anti-money laundering (AML) and Know Your Customer (KYC) regulations enforced in Peru.

For the recipient in the United States, the full legal name, address, and contact details are required. If funds are deposited directly into a bank account, the recipient’s bank name, account number, and the bank’s SWIFT/BIC code are essential. While a routing number may be needed for domestic transfers, for international transfers, the SWIFT code is the primary bank identifier. For cash pickups, the recipient must present a valid government-issued photo identification, such as a US driver’s license, passport, or State ID, along with the tracking number provided by the sender. Some services may require the sender to state the transfer’s purpose, such as family support or a gift. Proof of funds may be requested for very large amounts.

Initiating Your Money Transfer

Once all required information and documentation are ready, the process of initiating the money transfer can begin. For online or app-based services, the sender typically starts by creating an account or logging into an existing one. After logging in, the sender selects the destination country as the United States and specifies the amount to be sent. The platform prompts the sender to choose a delivery method, such as direct bank deposit or cash pickup.

Next, accurately enter the recipient’s details, including their full name, address, and bank account information if a bank deposit is chosen. This is where the pre-gathered recipient bank name, account number, and SWIFT/BIC code are entered into the system. The platform displays applicable fees and the exchange rate for review. The sender selects a payment method, including a bank transfer from a Peruvian bank account, or payment by debit or credit card. After confirming all details, the transfer is submitted, and the sender receives a tracking number to monitor the transaction’s progress.

When using an agent location service, visit a physical branch of the chosen money transfer provider in Peru. At the counter, fill out a send form provided by the agent. Provide valid identification and recipient details, including their name and location for cash pickup or bank information for a deposit. Provide funds to the agent, usually in cash or via a debit card. Upon successful submission, the agent issues a receipt that includes a unique tracking number, such as an MTCN (Money Transfer Control Number), which is critical for the recipient to claim the funds.

Receiving Funds in the United States

For recipients in the United States, the process of receiving funds is generally straightforward. If the transfer was sent as a bank deposit, the funds are typically credited directly into the recipient’s specified bank account. The processing time for these deposits can vary, often ranging from minutes to several business days, depending on the sending service and banks involved.

For cash pickups, the recipient visits a designated agent location of the chosen money transfer service. The recipient must present a valid government-issued photo identification that matches the name provided by the sender. Additionally, the recipient will need the tracking number (MTCN) that the sender provided.

It is important to be aware of potential tax reporting obligations for large sums received. While the U.S. federal government does not impose a tax on the recipient of a foreign gift, certain thresholds require reporting to the IRS. For example, if the total amount of gifts received from a foreign source exceeds a specified threshold in a tax year, the recipient must report it on IRS Form 3520. These are information returns, not tax payments, but failure to report can lead to penalties. Consulting a tax professional is advisable for specific guidance on reporting requirements for large international receipts.