How to Transfer Money From Europe to the USA

Transferring funds from Europe to the United States is common for individuals and businesses. Understanding the available methods and steps ensures a secure and efficient transaction.

Selecting a Transfer Service

Individuals and businesses have several options for sending money from Europe to the USA, each with distinct characteristics regarding speed, cost, and convenience.

Traditional banks facilitate international wire transfers (SWIFT transfers), perceived as secure due to established regulations. Bank wire transfers typically involve fees ranging from approximately $25 to $50 for outgoing international transfers, while receiving banks in the US might charge $0 to $16 for incoming funds. These transfers usually take one to five business days to complete, with potential delays if intermediary banks are involved or due to time zone differences.

Online money transfer platforms have emerged as a popular alternative, often offering more competitive rates and faster processing times. Companies like Wise, Xe, and Remitly leverage digital infrastructure to provide quicker transfers, frequently completing them within minutes to three business days. While fees vary, these digital services often present lower costs compared to traditional banks, sometimes as little as £0.20 or a few dollars, and clearly display exchange rates upfront. The convenience of initiating and tracking transfers via mobile applications or websites is a significant advantage of these platforms.

A third category includes specialized money transfer operators, such as Western Union or MoneyGram, which often cater to cash pickups. These services can be useful for niche situations where the recipient does not have a bank account or requires immediate cash. While they provide speed, especially for urgent situations, the total cost, including fees and exchange rate margins, may sometimes be higher than online platforms. The choice among these services depends largely on the urgency of the transfer, the amount being sent, and cost considerations.

Gathering Required Information and Documents

Before initiating a money transfer from Europe to the USA, gather specific information and documentation for compliance.

For the sender, this typically includes a full legal name, current residential address, and contact details such as a phone number and email address. Proof of identity, such as a valid passport or national identification card, and proof of address, like a recent utility bill or bank statement, are commonly required. For larger transfer amounts, financial institutions may also request documentation regarding the source of funds to comply with anti-money laundering (AML) regulations.

Regarding the recipient, their full legal name, current address, and contact details are essential. If the transfer is destined for a bank account, detailed recipient bank information is necessary. This includes the recipient’s bank name, its physical address, and the SWIFT/BIC (Society for Worldwide Interbank Financial Telecommunication/Bank Identifier Code) for international identification. For accounts in the United States, the routing number and the recipient’s bank account number are also required.

Regulatory Compliance

The purpose of the transfer is often requested for compliance and regulatory reporting. Financial institutions operate under strict anti-money laundering (AML) and Know Your Customer (KYC) regulations, mandated by laws like the Bank Secrecy Act (BSA) in the United States, to prevent illicit financial activities. For transfers exceeding $3,000, providers collect customer identification records.

Reporting Thresholds

Electronic transfers of $10,000 or more may trigger a report to government agencies like the Internal Revenue Service (IRS) under the BSA. This reporting requirement applies to the financial institution processing the electronic transfer, not to individuals physically transporting currency. For physical transportation of currency or monetary instruments exceeding $10,000 into or out of the United States, FinCEN Form 105 must be filed with U.S. Customs and Border Protection.

Executing Your Money Transfer

With your chosen service and information, initiate the money transfer.

If using an online money transfer platform, the process typically begins with creating an account or logging into an existing one. Most platforms offer user-friendly interfaces, often through a website or a dedicated mobile application, to guide you through the process. Once logged in, you will typically select the option to send a new transfer, specifying the destination country as the United States and the desired currency for the recipient.

The platform will then prompt you to input the sender and recipient details that you have already gathered. This includes your information, such as your name and contact details, and the recipient’s full name, address, and bank account information, including the SWIFT/BIC code and the US routing and account numbers. Double-check all entered information for accuracy, as errors can lead to delays or loss of funds.

After confirming the details, you will select your preferred method for funding the transfer. Common payment options include a direct bank transfer from your European bank account, or using a debit or credit card. Paying with a debit card is generally quicker and often incurs lower fees than using a credit card, as credit card payments may be subject to additional cash advance fees from your card issuer. Once the payment method is selected and the transaction is reviewed, the final step involves confirming and submitting the transfer. The service will provide a transaction ID or reference number for tracking.

Monitoring Your Transfer and Managing Costs

After initiating your money transfer, monitor its progress and understand associated costs.

Most transfer services provide a tracking mechanism, often through a unique transaction ID or reference number, allowing you to monitor funds online or via their mobile application. You will receive email or SMS notifications on key milestones, such as when funds are sent, in transit, and delivered. If a transfer is delayed or encounters issues, contact the service provider’s customer support with your transaction ID.

While bank wire transfers can take one to five business days, digital platforms often offer faster delivery, sometimes within minutes or typically within 1-3 business days. Factors influencing transfer time include banking hours in both Europe and the USA, time zone differences, the involvement of intermediary banks, and compliance checks required by financial regulations. For instance, transfers initiated on a Friday might not be processed until the following week due to weekends and public holidays.

Understanding the cost structure of your transfer involves considering both explicit fees and exchange rates. Service providers typically charge a flat fee per transaction, but some may apply percentage-based fees, particularly for larger amounts. Be aware of potential intermediary bank fees, which can be charged by banks involved in processing the transaction.

The exchange rate applied to your transfer significantly impacts the final amount the recipient receives. The “mid-market rate” is the true exchange rate at which banks trade currencies among themselves, without any markup. However, consumers are usually offered a “retail rate,” which includes a margin added by the service provider for profit. Always compare the offered exchange rate to the mid-market rate to identify any hidden costs embedded in the conversion. Calculating the total cost involves adding any explicit fees to the implicit cost from the exchange rate margin.