Best way to transfer money overseas from Australia

Ever come across the term ‘cash remittance’ when doing your banking, or sending money to a person or business?

Cash remittance refers to transferring money, usually overseas, where the recipient collects in cash. It’s a commonly used term in the financial world, but not everyone fully understands how works in practice.

Here, we’ll explain what cash remittance is, and how it stacks up against other transfer methods such as bank deposits. We’ll also look at the fees involved, and ways you could save when sending money worldwide.

For example, open a free Wise multi-currency account and you can send money internationally for low, transparent fees and real exchange rates. This means no hidden fees or costly mark-ups on the rate, so none of your money is lost along the way.

We’ll look at this in more detail later. But first, let’s find out what cash remittance is and how it all works.

What is cash remittance?¹

The word remittance comes from ‘remit’, which means ‘to send back’. Originally, cash remittance meant to physically send cash home, but it now has a slightly different meaning.

Nowadays, cash remittance refers to money transfers (usually international ones) where the recipient picks up their money in cash. They’ll visit a branch or agent for the money transfer service in person, present their ID and tracking number, and the cash is handed over.

One of the main benefits of this is that the recipient doesn’t need a bank account.

Cash remittance as a money transfer method is commonly used by people working abroad, sending money home to their families. If a friend or family member is backpacking around the world and needs a cash top-up, you can send cash to be collected at their nearest pickup point.

It can potentially be used for other purposes, such as business payments from country to country, but bank deposits are much more common in these situations.

Cash vs. bank deposit

If you’re weighing up whether to choose cash pickup or bank deposit for your transfer, here are a few key points to consider.

Firstly, not all money transfer services in all countries offer cash remittance, whereas you can usually send to bank accounts all over the world. This can limit your options, especially if you’d like to fund your transfer with cash as well as arranging a cash collection. Not all services accept cash, and even fewer services deliver it.

Cash remittance can happen very quickly, if not instantly². This means that a person in one part of the world can arrange a cash remittance and their recipient may be able to collect it from another location just a few minutes later.

It can take a little longer with bank deposits, but if you choose the right service it could arrive as quickly as the next working day³.

Of course, it all depends on whether your recipient is able to collect their money in person. It may not be convenient, or in the case of business transactions, appropriate. With a bank deposit, everything can be arranged in a matter of minutes and the money received with minimal effort from either party.

Fees for cash remittance – what to look out for

The fees for bank account deposit and cash pickup can vary widely between transfer services, and it’ll also depend where you’re sending from and to. Cash remittance will be cheaper for some transfers, while bank deposits will be the most cost-effective option for others.

In nearly all circumstances though, bank-to-bank transfers tend to involve eye-watering transfer and currency conversion fees. But of course, you don’t need to use your bank – there are many other options available (take a look at the next section for more info on this).

Here are the main fees and costs to watch out for with cash remittance:

• Transfer fees – these are the upfront fees you pay to the provider or bank to arrange the transfer
• Receiving fees – in some cases, it may cost the recipient a fee to collect their money in cash
• Exchange rate mark-up – this is the margin added to the mid-market or ‘real’ exchange rate by providers or banks. This kind of ‘hidden fee’ can make your transfer more expensive overall, even if the upfront transfer fee is tiny.

A few options

Before sending money abroad, it’s worth taking a moment to compare the many different options available to you. Otherwise, your transfer could end up costing you far more than you expect.

Here are just a handful of providers offering remittance services:

Wise
Wise is a money transfer specialist, known for being up to 7x cheaper than banks⁴. It’s free to open a multi-currency account, from which you can hold, spend and convert 50+ currencies. You’ll even get a handy Platinum debit MasterCard so you can spend abroad like a local.

But crucially, you can send money all over the world with Wise and you’ll always get low fees and the real exchange rate. Your recipients won’t be able to collect in cash, but if they do have a bank account – this can be one of the cheapest ways to send money abroad.

WorldRemit

WorldRemit has over 170,000 cash pickup locations worldwide⁵, and there are other options to receive money such as bank deposit or mobile money⁶ if cash collection isn’t available. You can’t pay for international transfers using cash with WorldRemit⁷.

Fees and exchange rates are competitive at WorldRemit, but not unbeatable – especially as the provider adds a margin to the mid-market rate. How much you pay may vary from country to country, sometimes even if the two locations share the same currency⁸.

Western Union

Western Union is one of the largest money transfer networks in the world, allowing you to send money to 200+ countries and territories worldwide⁹. You can fund payments in cash and arrange cash pickup for most locations, along with bank deposits.

Like WorldRemit, Western Union adds a mark-up onto the exchange rate as well as charging transfer fees (in most cases)¹⁰. This could make your transfer much more expensive even if the transfer fee appears to be very small.

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After reading this guide, you should have all the info you need to know about sending a cash remittance. It’s a flexible, fast option if the person you’re sending to doesn’t have a bank account, but remember that it’s not always the cheapest. There are many other ways to send money internationally, some of which could save you money.

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Sources used:

1. WorldRemit - What is Remittance
2. WorldRemit - Cash Pickup
3. Wise Australia
4. Wise Australia
5. WorldRemit - Cash Pickup
6. WorldRemit - Cash Pickup
7. Finder - WorldRemit Fees
8. Finder - WorldRemit Fees
9. Finder - WU
10. Finder - WU

Sources checked on 1-October 2020.

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In today's digital age, we have more options than ever for getting money from one country to another. If you're in Australia and need to send money elsewhere, you won't want for ways to do it. You'll just need to do your research to make sure you're picking the option that's best for your needs.

Whether you're looking for the cheapest option, the fastest or something else, keep in mind that the tips below are just that — tips. You should still look into your specific transfer needs to determine what option is going to work best for you, since a lot of factors can change.

Read on to find out what you need to know about choosing the best way to transfer money overseas from Australia.

📤 Send money with Wise

Make an International Money Transfer (IMT) with your bank

If you have a bank account, and the person receiving the transfer has a bank account, one of the most common options for transferring money overseas is an international money transfer with your bank, which is sometimes also called an (international) telegraphic transfer.

Banks transfer money internationally via the SWIFT system, which is a secure messaging system that allows them to send information, like transfer instructions, quickly and safely. That means your transfer will likely arrive at its destination pretty quickly (though this also depends on a lot of factors). The cons, however, are that there may be both sending and receiving fees for an international bank transfer. SWIFT transfers also generally travel through intermediary banks before reaching their final destinations, and each of those banks is entitled to charge a fee that will come out of the transfer amount. And banks are notorious for marking up their exchange rates to make an extra profit off international money transfers. This means that instead of converting your money from the sender's currency to the recipient's currency at the mid-market exchange rate, or the actual exchange rate you see when you Google the two currencies, banks often mark up the exchange rate by an average of 3-5% and keep that extra profit for themselves. This is essentially a hidden fee that the converting bank gets to keep out of the transfer amount, so the recipient will end up receiving less than what was sent.

Use a money transfer provider to transfer money abroad

A very common alternative to bank transfers is online money transfer services. You've probably heard of a few of them even if you've never transferred money overseas: Western Union, Moneygram, Rio and many others provide this service.

Their fees will likely vary depending on how you want to pay for your transfer, and what country you're sending money to. But one thing is consistent among many of these services: they almost always mark up their exchange rates. Wise offers fast, convenient online transfers, and always converts your money at the mid-market rate, guaranteed. Compare Wise to other online money transfer providers' exchange rates, or check exchange rates with an online currency converter to see if the quote you're offered is a good deal.

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💵 Moving big money? Send over 40,000 AUD or equivalent within a month with Wise, and you'll get even lower fees - as low as 0.1% - for all your transfers that month. Whether it's one large transfer or multiple smaller ones in any of the global currencies we support, you can save more with Wise.

👉🏻 Learn more about large amount transfers with Wise

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Send cash, or a cheque, overseas

Some of the online transfer services above, like Western Union, also offer the option to send cash for the recipient to pick up overseas. This is a great option if you need to send money to someone who doesn't have a bank account, but it often has higher fees that come with it than a transfer to a bank account. You can also send cash in the mail, but that's risky because mail can get lost, and it's also inconvenient because international mail can take a long time to arrive, and you'll have to either buy the recipient's home currency from your bank to send, or send your home currency that the recipient will then need to exchange after picking it up. That's quite a hassle.

Sending a cheque is another option, but again, you'll run into the long times it can take to send international mail, so if the recipient needs to get their payment quickly, this likely isn't the best option. And a regular cheque won't work; you'll have to go to your bank to order a foreign currency draft, which also generally comes with higher fees, compared to an international transfer to a bank account.

Take money with you, in person

If you're traveling to the recipient's country, you can also take some cash with you and convert it when you arrive, or just withdraw the needed amount from a local ATM once you land in their country. Remember, though, to always choose to view ATM transactions in the local currency, even if you get the option to view them in your own currency. This seemingly convenient option actually allows the ATM owner to set a marked up exchange rate for your withdrawal. Use the local currency, and you'll usually get a better rate.

What is the cheapest way to send money overseas

It's hard to name one "cheapest" way to send money overseas, since there are so many variable factors that affect how much it costs to make an international transfer. That's why, before you choose an option, you should thoroughly research providers and options using your own specifics: how you want to pay, how much you need to send and where you're sending it to. No matter what you choose, though, the easiest way to save money on an international transfer is to make sure you get the mid-market exchange rate, which is the same one you'll see on Google.

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How do I choose the best way to make an international transfer?

This will just depend on your own needs. Think about your priorities in making your transfer. Do you need the money to arrive quickly? Or are you more concerned about how much the transfer will cost you? Decide what's most important to you, and then research accordingly.

No matter what option you choose, research will be your best tool to make sure you're getting the deal you need. Good luck with your transfer!

Transfer money with low, transparent fees with Wise

Wise is an easy way to save up to 5x when sending money overseas. You can make extra secure transfers to 140+ countries, which are easy to set up with no physical paperwork and completed usually in seconds.

With low, transparent pricing and the mid-market exchange rate for all your currency conversions for your foreign transfers, you'll usually get the best value for your money. Wise lets you see exactly what you're paying for a transfer, and what the recipient will get, with no hidden fees.

For managing foreign currencies even easier, create a free Wise account, and you'll be able to manage and convert your money in AUD and 40+ other currencies. Plus, you'll get local account details in 8+ currencies, including GBP, USD, and more making it easy to receive money from abroad whenever you need. You'll be able to track your transfers all in one place.

When it comes to international transfers, Wise makes things easier and cheaper.

📤 Send money with Wise

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This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you. Savings claim based on our rates vs. selected Australian banks and other similar providers in Jan 2026. To learn more please visit https://wise.com/au/compare

Please see Terms of Use and product availability for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

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