How to Send Money to Hungary: A Step-by-Step Guide

Sending money internationally to Hungary has become increasingly accessible, offering various convenient and efficient options. Understanding the available methods and necessary steps can help ensure a smooth and secure transaction.

Common Methods for Sending Money

Several reliable services facilitate international money transfers to Hungary. Online money transfer services, such as Wise, Remitly, and Xoom, allow users to send funds digitally, often providing competitive exchange rates and faster transfer times compared to traditional banks. These services typically involve transferring money from one bank account to another or to a mobile wallet.

Traditional bank wire transfers remain a common method for moving funds directly between bank accounts. Banks utilize networks like SWIFT to facilitate these international transfers. While generally secure, bank wires can involve higher fees and longer processing times, ranging from one to five business days.

Money order or cash pickup services, including Western Union and MoneyGram, offer an alternative for recipients who may not have a bank account. These services allow senders to initiate a transfer online or at an agent location, with the recipient collecting cash at a designated pickup point in Hungary. This method provides accessibility, as recipients only need a valid identification and a reference number to receive the funds.

Information and Documentation Needed

Senders typically need to provide their full legal name, current address, date of birth, and contact details. A government-issued identification, such as a passport or driver’s license, is generally required for identity verification, a process known as Know Your Customer (KYC) that helps prevent illicit financial activities.

For the recipient in Hungary, their full legal name, exactly as it appears on their identification or bank account, is essential. Their address and contact details, including a valid phone number, are also necessary. If sending to a bank account, the recipient’s bank details are crucial; this includes the bank’s full name, its SWIFT/BIC code, and the International Bank Account Number (IBAN).

The Hungarian IBAN is a 28-character alphanumeric code, beginning with “HU” for Hungary. Some services may also ask for the purpose of the transfer, especially for larger amounts, to comply with regulatory requirements.

Understanding Costs and Exchange Rates

Transfer fees can be fixed, a percentage of the transferred amount, or a combination of both, varying significantly among service providers and payment methods. For instance, some services may offer lower fees for bank-to-bank transfers compared to credit card payments.

The exchange rate is a significant factor, determining how much Hungarian Forint (HUF) the recipient receives for the sent US Dollars. Service providers often apply a margin to the “mid-market rate,” which is the true midpoint between the buy and sell prices of a currency pair. This margin, also known as a spread, is how many providers generate profit from currency conversions.

While some providers advertise “zero fees,” they may incorporate their costs into a less favorable exchange rate. Additionally, hidden costs can arise, such as correspondent bank fees for wire transfers, where intermediary banks deduct a charge during the transfer process. It is also possible for the recipient’s bank to charge a small fee upon receipt.

Executing Your Money Transfer

Many online providers and banks offer platforms to initiate transfers, either through their websites or mobile applications. Begin by selecting Hungary as the destination country and inputting the amount you wish to send.

Accurately enter the sender and recipient details into the system. This includes the recipient’s full name, bank name, SWIFT/BIC code, and the complete 28-character Hungarian IBAN if sending to a bank account. Double-checking all entered information is critical, as errors can cause delays or even loss of funds.

Select your preferred funding method for the transfer. Common options include linking a bank account for a direct transfer, using a debit or credit card, or, for some services, funding with cash at an agent location. After funding, review the entire transaction summary, including fees and the exact amount the recipient will receive, before confirming the transfer. Upon successful initiation, you will typically receive a confirmation and a tracking number, allowing you to monitor the transfer’s status until completion.

What the Recipient Needs to Do

If the money is sent directly to a Hungarian bank account, the funds will typically appear in their account within an estimated one to five business days, though some online services can deliver within minutes or hours. The recipient should regularly check their bank statements for the incoming funds.

For cash pickup transfers, the recipient must present a valid government-issued identification and the unique transfer reference number at a designated agent location in Hungary. It is helpful for the sender to communicate this tracking number and the expected arrival time to the recipient promptly.

Regardless of the method, once the transfer is complete, the sender should notify the recipient. This communication helps the recipient anticipate the arrival of funds and take any necessary steps to access them. Processing times can vary depending on the service provider, the method of transfer, and banking hours in both countries.