International Money Transfer

Updated 25 June 2019
Summary of International Money Transfers
  • Banks dominated the way money was sent overseas until the arrival of game-changing money transfer services like TransferWise and CurrencyFair. 
  • Today, you can transfer NZD to 75+ countries in minutes - banks still take 3 to 5 working day to do the same thing, and the fees are generally much higher. 
  • Sending money to family overseas, paying an employee or wiring urgent money to a loved one does not need to cost a fortune in fees.
  • Many New Zealand banks charge a NZ$20 fee per transfer, but a number of online operators do it for a fraction of that. Better yet, their exchange rates are higher meaning you get more foreign currency for every NZD you send.
  • Our guide to international money transfers tells you everything you need to know to get the best foreign exchange rate and pay the lowest fee.
  • Best Transfer Company: Our study of multiple transfer companies in many currencies and amounts revealed TransferWise was the best international money transfer solution and is our recommended provider. 
  • Whatever your needs - a one-off or regular payment overseas – we reveal how to save significant amounts of money.
 
This guide covers:

Our Picks: Best International Money Transfer Companies

Knowing which company to sign up to when sending NZD overseas isn't easy, but our research makes it clear which company offers the best deals. 

From the results of our testing period in June 2019, we concluded that TransferWise consistently offered the best value, i.e. more foreign currency for your NZ dollar, compared to its rivals. We tested the currencies of AED, AUD, CAD, EUR, GBP, HKD, INR, JPY, MXN, PHP, SGD, USD and ZAR using small payments (NZ$100 and NZ$500) and big payments ($5,000). 

Overall, our results were as followed:
#1 - TransferWise
​$0 Transfer Fee
Transfer online
Simple & Secure
Highest-rated in our study
#2 CurrencyFair
Most transaction fees are 0.4% of the transfer amount
Runner up to TransferWise
#3 Orbit Remit
​NZ$4 Transfer fee
#4 Western Union
NZ$4 Transfer fee
The widest choice of foreign currencies
#5 OFX
NZ$12 fee for most transfers
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​What will it cost to transfer money overseas?

Banks and money transfer companies charge you in two ways:
  1. The transfer fee, and
  2. The exchange rate
You may see adverts for ‘fee-free transfers’ or similar – the exchange rate will often be bad to make up for not charging a transfer fee. Don’t be caught out by such advertising.
 
The Transfer Fee
  • This can come in many forms, it will either be per transaction (i.e. such as banks who charge $20), a commission (such as some kiosks who charge 2% or 3% of the transfer amount), or a mixture of both.
  • These fees are often disguised or mentioned in the fine print to hide the true cost of the transfer service.
 
Exchange rate
  • The foreign exchange rate is the amount of foreign currency you receive for your New Zealand Dollars.
  • For example, if you see “0:52 GBP” or “0.92 AUD”, this means you will get £52 or A$92 per NZ$100 exchanged, less any fees charged.
  • Many companies advertise that they are 'commission-free' or ‘fee-free’ and then lower the exchange rate against your favour, so you get less foreign exchange currency for your NZD.
  • Confusingly, you won’t know the exchange rates of all the companies at any one time, as few publish them online, and the rates go up and down throughout the day. 
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​How safe is a money transfer?

  • Sending NZD overseas is only a risk if the company you use goes bankrupt during the process. If you use a New Zealand bank, the risk is minimal.
  • Online companies such as TransferWise are also relatively safe. But the financial position of a dodgy-looking kiosk is less certain, so it’s essential to consider the amount of the money being transferred and whether or not you can afford to lose it.
  • Thankfully, in New Zealand, the instances of currency companies going bust are relatively rare – but it can happen, and when it does there is no compensation or legal protection in place for those who lose out. 
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How can I send money to another country?

There are generally four ways to send money to someone in another country:
  1. Use an international money transfer company – these are online brokers, such as TransferWise. You join online and can send money in about 5-10 minutes, once ID approvals are completed. Generally, such companies support payment to almost any country in the world.
  2. Use your bank – all banks offer this service, but in most cases you will need to be their customer. For example, if Westpac has a great exchange rate for the Australian Dollar but you bank with the BNZ, you won’t be able to use their service. Banks are often limited in what currencies they can support payments for, and you may need to have the payment ‘approved’ by head office before your money leaves New Zealand.
  3. Use a money transfer kiosk – these are physical stores, often providing foreign exchange in cash to tourists etc. An example of such a kiosk is Western Union. These companies tend to support payments to almost any country in the world, but there may be limitations.
  4. Use PayPal – if you have a PayPal account, you can send money to anyone else with a PayPal account. Generally, the foreign exchange rates offered by PayPal are not very competitive compared to the alternatives, but this can suit your needs in some circumstances. Read our guide to PayPal fees for more details. 
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What is the best way to compare options?

With fees, commissions and a variation in exchange rates, it does seem complicated. But it doesn’t need to be – there is only ONE question you need to ask:
  • After all charges, how many Euros/Australian Dollars/Rupees/Pounds/Yen will I get?
 
While this may seem like an easy question, it’s sometimes hard to get an answer. While fees and commission percentages are relatively stable, exchange rates go up and down every minute.  Our suggested process:
  1. Use our Currency Converter to get a mid-market exchange rate (this is the mid-point between the wholesale 'buy' and 'sell' price). Enter the amount of NZD you want to send and the currency you want to deliver it in, to get an idea of the total NZD cost.
  2. Compare this to the quotes by banks and/or foreign exchange companies. This will give you an indication of which quote is the best.
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The Complete Comparison of International Money Transfers

  • Transfer money worldwide FOR LESS by using a service that charges lower fees.
  • We have ranked the providers below in the order of price based on our detailed study. 
  • Before you make any transfer, quickly check what your bank can offer to make sure you have a full comparison. In most instances, it won't beat the online providers.
  • Our list makes it easy to find the best deal, whether you want to send money today, or on a regular basis.

Our Study
  • We studied the seven online transfer websites over a period of five days during June 2019, to compare the total amount received in local currency for a range of NZD amounts.
  • We used bank transfer as the method of payment, and compared the cost of sending a range of payments (NZ$100 to NZ$5,000) to AUD, INR, GBP, EUR, USD, CAD, SGD, JPY, MXP and ZAR.
  • We have ordered the money transfer services below based on our results. 

TransferWise

  • Stand out points: Low fees, fast processing and transfer times, excellent user experience
  • Results in our study: Best overall and most extensive list of currencies
  • Coverage from New Zealand: 75+ countries
  • Payment options: Bank transfer, POLi, debit card and credit card
  • Cost: One of the cheapest money transfer services available in New Zealand, and arguably the most trusted. For NZ$1,000 being sent to India, the UK, Europe or Australia, TransferWise's fees ranges from $7 to $9 if paying via bank transfer, with market-leading exchange rates. Additional fees apply for non-bank transfer payment options. 
  • Speed: For most countries, same-day delivery is possible, but only if you use POLi or debit/credit cards as a method of payment. Otherwise, if paying by bank transfer, it can take around one to three business days, depending on the destination.
  • Transfer limits: Up to $2,200,000 per transfer. 
  • Customer experience: Phone support (limited, and out of sync with the New Zealand timezone), email, mobile app and Facebook messenger.
  • Want to know more? Read our TransferWise review or visit TransferWise and sign up.
  • Stand out points: Low fees, 1-2 day transfer times, 9.4+ rating on Trustpilot
  • Results in our study: Runner up to TransferWise - CurrencyFair currently offers the first three transfers free, meaning for a one-off transfer you are likely to get the best deal. However, TransferWise's payment totals for the currencies we looked at were, on average, 99.9% the total of CurrencyFair's free fees offer, and thus we have placed it as runner up given TransferWise charges fees.  
  • Coverage from New Zealand: Around 20 currencies
  • Payment options: Bank transfer
  • Cost: Currency Fair promotes a 'first transfer free' service, with a standard 0.25% or 0.3% fee, depending on the currency pair being exchanged, of the total amount exchanged. For NZ$1,000 being sent to India, the UK, Europe or Australia, Currency Fair's fee is around $5, with market-leading exchange rates. 
  • Speed: For most countries, 1 - 2 Business Days is the standard delivery time.
  • Transfer limits: Up to $10,000,000 per transfer. 
  • Customer experience: Phone support (limited, and out of sync with the New Zealand timezone), email, mobile app and Facebook messenger.
  • Want to know more? Visit CurrencyFair and sign up.
  • Stand out points: Low fees, fast processing and transfer times, excellent user experience
  • Results in our study: Third, behind TransferWise and CurrencyFair. 
  • Coverage from New Zealand: ~20 currencies
  • Payment options: Bank transfer
  • Cost: NZ$4.00 for each transfer. For NZ$1,000 being sent to India, the UK, Europe or Australia, Orbit Remit's fee will be $4, with market-leading exchange rates. 
  • Speed: For most countries, 1-2 business days.
  • Transfer limits: No limit
  • Customer experience: Phone support (24/7, Wellington-based), email, mobile app and Facebook messenger.
  • Want to know more? Visit OrbitRemit and sign up.
  • Stand out points: Low fees, fast processing and transfer times, the widest choice of foreign currencies, excellent user experience.
  • Results in our study: Fourth, behind TransferWise, CurrencyFair and Orbit Remit. 
  • Coverage from New Zealand: 100+ currencies
  • Payment options: Visa or MasterCard credit, debit or prepaid card.
  • Cost: NZ$4.00 per transaction.
  • Speed: For most countries, it's is 1-2 business days if money is sent to a bank account, or within 10 minutes if sent to a Western Union collection point (but the FX rate is considerably lower, making the transfer more expensive).
  • Transfer limits: Up to $5,000 per transfer. 
  • Customer experience: Phone support, email, mobile app and Facebook messenger.
  • Want to know more? Visit WesternUnion and sign up.
  • ​​Stand out points: Low fees, fast processing and transfer times, 8.7+ Trustpilot customer review rating
  • Results in our study: Last place
  • Coverage from New Zealand: 55+ currencies
  • Payment options: Bank transfer
  • Cost: NZ$12 for most transfers.
  • Speed: For most countries, 1-2 business days
  • Transfer limits: No limits 
  • Customer experience: Phone support, email, mobile app and Facebook messenger.
  • Want to know more? Visit OFX and sign up.
Our testing methodology
  1. Our researchers sampled five days of FX rates for all providers in real time during June 2019. 
  2. We ranked TransferWise first, as it provided 99.92% of CurrencyFair's conversions for amounts over NZ$5,000 despite the CurrencyFair rates being 'fee free' with a promotional offer. 
  3. All other money transfer companies were compared with TransferWise's rate average to establish an order. 
  4. Our data set can be downloaded in XLSX format here. 
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International Money Transfers - Frequently Asked Questions

How can I send money to another country?

  • The international money transfer limit will depend on where you’re sending the money from and to, and the provider’s security limits.
  • Depending on how much you plan to send, there may be limits. Generally, payments totalling less than $10,000 are no issue for banks, specialist money transfer companies or kiosks.
  • If you’re buying a car from overseas or selling your home and sending the money overseas, you may find your preferred provider isn’t able to offer a service. 
​

What do I do about tax?

  • If you are moving money overseas and unsure of the tax obligations, it’s a good idea to seek the advice of an accountant who is experienced in such matters.
  • Different countries have different rules on how much tax you should pay on any money received, and this will depend on the nature of the money – for example, whether the money is a financial gift or a regular salary.
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What details do I need to send an international money transfer?

To send money overseas, you will need to provide the international money transfer company with:
  • Name (the account holder’s name)
  • IBAN
  • SWIFT/BIC code
  • The address of the recipient, and in some cases, their email and phone number
  • ABA number (USA) or ​IFSC code (India)
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How do I pay for an international money transfer?

You can send money overseas using physical cash, money in your bank account, credit or debit cards and a PayPal balance. The fees will differ depending on the method, and some companies will only accept certain forms of payment.

How long does it take for an international money transfer to arrive?

  • It depends on what country you send the money to, how you pay for the transfer, and the provider you use.
  • If you’re using a bank, it can take between two and five working days, whereas TransferWise can send money from New Zealand to England, India or the Philippines in a matter of seconds.
  • PayPal offers an instant service, meaning the recipient will receive their money as soon as you press ‘send’. 
​

How can I track an international money transfer?

  • Specialist companies such as TransferWise send an email to both the sender and the recipient of the transfer with tracking information and an estimated time of arrival. This is also a service that will also be offered by companies such as Western Union.
  • Banks, however, don’t tend to offer this service, as they often use older technology compared to specialist companies such as TransferWise. 
​

What do I do if things go wrong?

If your money doesn't arrive as planned, check that the money left your account - sometimes transfers can stall at the first step. If it has, the next step is to call or email the company you used. They can then track the payment and let you know the status of it, or if there's been a holdup. You can also ask your recipient to contact their bank, as in rare cases there can be delays at the destination.

Should I use my bank or an online provider listed by MoneyHub?

This depends on you. Typically, an online provider will be cheaper and give you more foreign currency per NZD than any bank. However, if you prefer to use your bank, the time taken to process a transfer is usually much longer - 3 to 5 working days is normal, whereas 3 to 5 minutes is standard for an online transfer.
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​Money Transfer Options for One-Off Payments (NZ$10,000 or less)

Online and Bank services for one-off small payments
A number of banks and specialist companies allow you to send money online, using e-commerce transfers. The cheapest, safest and fastest option depends on how much money you want to send.
Popular uses include:
  • Sending a one-off sum of money to a friend/family member overseas, e.g. for Birthday or Christmas presents
  • Paying for goods ordered on Alibaba or directly with an overseas supplier
  • Paying overseas employees or contractors
 
There are a number of New Zealand firms and banks offering international money transfers. The process is simple - you pay them in NZD and they initiate an internet-based money transfer. We have listed these below, although each offer different fee structures. From our research, PayPal is most likely to offer the worst value for money (see our PayPal review for more details). 
  • TransferWise
  • CurrencyFair
  • OrbitRemit
  • Western Union
  • OFX
  • PayPal
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Money Transfer Options for LARGE One-Off Payments (NZ$10,000 or more)

While your options and ability to negotiate rates and fees are limited with small, one-off transfers, larger money transfers have more bargaining power. In most cases, a large payment is for situations as such:
  • Buying or selling overseas property
  • Making regular payments overseas, such as a mortgage, bills, a pension or an allowance
  • If you’re moving overseas and want to transfer cash for when you arrive
 
As is the case with smaller, one-off payments, you have no protection if the company you use to transfer your money goes bankrupt.

5 tips for transferring large amounts

Small differentials can make a HUGE difference – a 1% better exchange rate on a $50,000 transfer makes a $500 difference. The best exchange rate AND the lowest fee/commission makes all the difference.
  1. Benchmark the rate - use our Currency Converter to get a mid-market exchange rate (this is the mid-point between the wholesale 'buy' and 'sell' price). Enter the amount of NZD you want to send and the currency you want to deliver it in, to get an idea of the total NZD cost.
  2. Compare this to the quotes by banks and/or foreign exchange companies. This will give you an indication of which quote is the best. It's rare that a bank will actually offer the best deal, but knowing what they will charge is useful, and if the bank is willing to negotiate, it could be the winner.
  3. Get quotes around the same time – as rates change every minute, you can only compare effectively if you get your quotes on the same morning or afternoon.
  4. Typically, the less you transfer, the worse the exchange rates you will get – if you’re using a provider operating offline, such as a bank or specialist broker, calling to negotiate exactly what you need to transfer can lead to a better rate.
  5. If you’re flexible with time, you can lock in a rate later. This means you may end up with a better exchange rate if the NZD gets stronger, or less foreign money if it weakens. There is no way of knowing the future value of the NZD so if you want to be certain, locking in an exchange rate sooner rather than later is the best approach.

Remember: The best way to compare each money transfer company is to ask how much foreign currency you will get for your New Zealand dollars, after all charges have been deducted.
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