How to Send Money to Portugal from USA

Sending money from the United States to Portugal requires understanding various financial options, transaction details, and transfer processes. This guide outlines these aspects to help you manage international money transfers.

Selecting a Money Transfer Method

When sending money from the USA to Portugal, various service types are available, each with distinct characteristics regarding fees, exchange rates, and transfer speeds. Traditional banks offer international wire transfers, which are secure but often come with higher fees and less favorable exchange rates. Outgoing bank wire transfer fees can range from $25 to $50, while incoming transfers might incur fees up to $25. Online money transfer platforms and apps, such as Wise, Remitly, and Xoom, typically provide more competitive exchange rates and lower fees, sometimes offering promotional rates for first-time transfers. These digital services often feature transparent fee structures.

The exchange rate directly impacts the final amount received in Euros. Banks often apply a markup to the interbank exchange rate, which is the rate banks use to trade with each other. Online transfer services generally offer rates closer to the mid-market rate, leading to more Euros for your US Dollars. Assess the true cost of a transfer by understanding the difference between the displayed exchange rate and the actual mid-market rate. Some providers may state “no fees” but incorporate their profit into a less favorable exchange rate.

Transfer speed varies significantly. Bank wire transfers usually take one to five business days, though some can be faster or slower depending on intermediary banks and compliance checks. Online platforms often offer faster transfer times, with some completing transactions within minutes or a few hours, especially for debit card payments or transfers between accounts on the same platform. However, factors like daily cut-off times, banking holidays, and the efficiency of the receiving bank in Portugal can influence delivery speed.

Regardless of the chosen method, certain information is required for both the sender and recipient to comply with financial regulations and ensure accurate delivery. Providing a recipient’s phone number or email can also be helpful for notifications.

Sender Information

Full name
Address
Date of birth
Identification details (e.g., government-issued ID or Social Security Number)

Recipient Information

Full legal name
Address
Bank name
International Bank Account Number (IBAN): In Portugal, an IBAN is 25 characters long, consisting of letters and numbers.
SWIFT/BIC (Bank Identifier Code): This is a unique identification code for financial institutions.

Consider transfer limits, as services often impose daily, weekly, or monthly caps on the amount of money you can send. Individual providers and banks set their own limits. These limits can vary based on your verification status, the payment method used, and the destination country. Some services may have daily limits of a few thousand dollars, while others may allow much higher amounts for fully verified users.

Preparing and Initiating Your Transfer

After selecting a money transfer method and gathering all necessary information, you can initiate the transfer. For online platforms, the process begins by creating an account. This involves providing personal details and verifying your identity, which may include submitting identification documents. After account setup, navigate to the transfer section to specify the send and receive countries and currency.

Enter the amount you wish to send in US Dollars. The system will display the corresponding amount the recipient will receive in Euros, accounting for the exchange rate and fees. This allows you to review the total cost before proceeding. Then, accurately input the sender and recipient details, including the recipient’s full name, bank name, IBAN, and SWIFT/BIC code.

After reviewing all details for accuracy, select your payment method. Common options include linking your bank account for a direct bank transfer (ACH), using a debit card, or a credit card.

Bank transfers generally have lower fees but may take longer for funds to clear. Debit or credit card payments often incur higher fees but can result in faster transfers. Confirm the transaction to initiate the transfer. Many platforms provide a confirmation screen with a tracking number.

For bank wire transfers, the process can differ. While some banks allow international wire transfers online, many still require a visit to a physical branch.

At the bank, complete a wire transfer request form. Provide the recipient’s full name, address, bank name, IBAN, and SWIFT/BIC code. Specify the amount to be sent and the funding source from your account. Once submitted and processed, the bank will provide a confirmation or reference number for tracking.

Receiving and Finalizing the Transfer

After the sender initiates the transfer, the recipient in Portugal can monitor the transaction. For bank deposits, funds are automatically credited to their bank account once processed. For cash pickup services, the recipient must present a valid identification document, such as a passport, and the unique transaction reference number provided by the sender. The recipient should be aware of the pickup location’s operating hours, which could be a bank branch or a dedicated money transfer agent.

Senders can track their transfer status and estimated delivery time. Most online money transfer services offer tracking numbers or reference codes usable on their websites or mobile apps. Notifications, such as email or SMS updates, are commonly provided at different stages of the transfer. If a transfer experiences delays, contacting the service provider with the tracking number can help trace funds and resolve issues.

Security is important for money transfers. Always verify recipient details multiple times before confirming a transfer, as errors can lead to funds being sent to the wrong account and can be difficult to recover. Use reputable money transfer services with robust security measures, such as encryption and two-factor authentication, to protect your financial information. Be cautious of unsolicited communications or suspicious requests for personal or financial details, as these could be phishing attempts or scams.

International money transfers must comply with financial regulations. Financial institutions in the U.S. are required to report international transactions exceeding $10,000 to the Financial Crimes Enforcement Network (FinCEN) under the Bank Secrecy Act. This reporting helps combat money laundering and other illicit activities. For large sums, senders may be asked for additional information, such as the source of funds, to comply with these regulations.