Fast and cheap money transfers from Europe to America were a major thorn in my side for quite a long time. I used PayPal, but it took a large percentage of the transfer. I also tried various methods of withdrawals, transfers and similar options directly in the USA.
I have summarized in the article all the options I tried – their advantages, disadvantages and how much they cost in total.
The first option is probably the one that comes to mind for almost everyone.
Classic bank transfer
This option seems to me to be one of the most expensive. According to its price list, my bank charges CZK 1,000 as a one-time fee for each international transfer, plus approximately 1–2% of the total amount transferred.
It is said that banks transfer money abroad using the Czech National Bank’s (ČNB) mid-market exchange rate. I don't think so. I tried this transfer and, when recalculating the amount, the exchange rate seemed worse than the mid-market rate. Everything took less than a week.
PayPal
A fairly convenient and fast way to transfer money.
You can have the amount charged directly to your payment card and then enter your account details into PayPal, to which you can subsequently transfer the money. For transfers to Czech banks, you only need to enter the IBAN and SWIFT code; for a bank in the USA, the account number and routing number.
You can find these on checks or in the documents you receive from the bank when opening an account. I have personally verified that transfers to the Czech Republic take approximately 2 days, while transfers to accounts at banks in the USA take approximately 3–5 days.
Since PayPal charges 4% of the total amount for arranging the payment, it ranks among the most expensive options.
However, it is very convenient and trouble-free.
ATM withdrawals in the USA
I would use this option only for smaller amounts and when you need immediate cash.
From ATMs, as they are called in America, you can withdraw a maximum of 500 dollars per day as a one-time withdrawal. It will not let you withdraw more. However, you can go to an ATM belonging to another bank a little farther away and withdraw another 500 USD.
Our bank in the Czech Republic charges CZK 100 as a one-time withdrawal fee, and the American ATM additionally informs you that it charges another one-time fee of 3 USD for the withdrawal.
The exchange rate was not bad when withdrawing, but bear in mind the fees charged by both your bank and the American bank, as well as the fact that you can withdraw only a relatively small amount at a time – the aforementioned 500 dollars. So if, for example, you need 2,000 USD, you have to visit 4 different ATMs and pay the bank fees 4 times.
At the beginning, I used this option a few times when I needed money to pay various expenses and we were waiting for the money transfer from Europe.
Deposit into a bank account using a European payment card
This is already an interesting option. The whole process involves going to the bank – in my case, Bank of America – going to the counter and requesting a deposit into my account, using a foreign card as payment rather than cash.
You need to bring proof of identity with you – either an American ID or a driver's license. If you do not have one, your passport will serve this purpose.
The transferred amount is immediately credited to your account.
The whole solution essentially works like a card payment. Neither the bank in the Czech Republic nor the bank in the USA charged me any fee for such a deposit; the exchange rate was slightly worse, but nothing terrible.
Fast, efficient, cheaper than the methods above, and you have the money in your American account immediately.
Transferwise
For me, probably the best option so far.
You can find a presentation and description of the whole system directly on the https://wise.com website. It is a startup company in which, among others, my favorite, Richard Branson – owner of Virgin Airlines and Virgin Galactic – also invests.
That is also why the company immediately inspired my trust when I first discovered it.
The transfer process works very simply. You transfer the required amount either by card payment directly through TransferWise or by transferring it to their account in the country from which the money is sent.
In the Czech Republic, they have an account with Raiffeisen Bank, where I also have an account, so in my case the money is credited to them almost immediately. The speed of the transfer depends on which currency you are transferring the money from.
We have tried a euro–dollar transfer – in this case, the funds are in Bank of America within 2 days. With Czech koruna, it takes a little longer. It depends on the amount you are transferring. Smaller amounts arrive within a few days, while larger amounts can take approximately up to a week.
For larger amounts, also prepare scans of your documents, such as your passport, identity card or driver's license, which you will have to upload to TransferWise once during the transfer.
This is probably to prevent potential fraud and to identify you precisely as a user. Given the one-time fee of 0.5% of the transferred amount, it has become my number one choice.
The technical support also works perfectly.
I called them because we are currently transferring large amounts; everything was answered professionally and the information provided was exactly accurate!
Summary?
I realize that I probably have not covered all the options that exist. I simply do not know about them :). I am only sharing my personal experiences to date.
If you have any other insights, perhaps involving other companies engaged in this business, please share them not only with me but also with the other visitors to the website.
I am open to all new possibilities ;).
