How to transfer money from India to the USA

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When sending money to another country, everyone is primarily interested in ensuring that they reach the recipient securely. Secondarily, they are concerned with the exchange rate, fees, transaction time, etc. From this review you will learn:

How to choose a financial intermediary to transfer money from India to the USA.

Possible options for transferring INR from India with conversion to USD and subsequent withdrawal of dollars in the United States.

The procedure for sending money using a payment system.

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Criteria for choosing payment options for transferring money from India to the USA:

Exchange rate. It is applied whenever different currencies are exchanged, and in the USA the recipient needs to withdraw USD. Each bank or payment system has its exchange rate and margin, depending on internal factors and the rate of Central Banks. The difference in exchange rates is very noticeable in large amounts.

Fees. Each financial intermediary has a rate schedule. This may be a fixed fee included in the margin. Fees can also be flexible, such as reduced fees within the internal network, within the partner network, flexible conversion fees, etc. Some systems have prepaid package options. Buying such a package for a month opens access to advanced functions: express transfers, notifications about the best exchange rate, etc.

Technical capabilities. For example, the possibility of direct card-to-card transfer from India to the USA. If it is not available, you will need to use payment systems and additional exchangers. The more intermediaries there are, the higher the combined fees.

Possibility of cash withdrawal. For example, you transfer money using a payment system that works with the "A" bank in the USA. This means that the recipient in the USA can transfer money from the account of the payment system to the card of the "A" bank and withdraw money from an ATM. But what if the card of the "A" bank is not accepted at local ATMs? In that case, the recipient needs to use the services of an additional intermediary, which entails additional fee costs.

Transaction speed. The more intermediaries there are, the longer the transfer will take. On average, money transfers between systems take from several hours to 3-7 business days.

Reliability. As soon as you send money from your card or wallet, you lose control over them. You do not want them to hang somewhere and disappear? Look for reputable financial intermediaries. Ideally, they should be licensed and have reviews from real users.

Conclusion. The best option is a chain between the sender and the recipient, containing the least number of intermediaries with optimal fees and transfer speed.

How to Send Money Internationally?

Best ways to send money from India to the USA

Regardless of what currency is transferred, the intermediary (transfer service) is important, which can be a payment system, a bank, the system of international financial transfers, etc. It can be any transfer option: money can be sent through banks via SWIFT, Visa/MasterCard payment systems, international transfer systems, payment systems, e-wallets, etc. Below, TU will take a detailed look at each option for transferring money from India to the USA.

Payment systems

This is the most common international transfer option. Payment systems "don't ask hard questions" (although there are some restrictions on the types of transactions), transfers take relatively little time, they have moderate fees, and a wide range of options. These can be Visa/MasterCard payment systems (cards issued by banks or financial platforms), PayPal, Payoneer, etc. There are differences in fees and payment methods.

For example, with a direct transaction, you can make a money transfer even if the sender's and recipient's cards use different payment systems. All you need is to know the recipient's card number. The second option: you open an account in the payment system, link a card, and send money from your account to the recipient within the system or partner systems. In this case, the card number is not needed, because the necessary registration data of the recipient is contained in the payment system.

Banks

The most reliable, simple — but also time-consuming and costly — method of money transfer. International banks support SWIFT transfers to almost all countries, but they charge a large fee for the transfer and security. Another problem is that banks strictly comply with the law. So, if a country imposes withdrawal limits, they will be met. Also, if a certain limit on the amount sent is exceeded, the bank has the right to request information about the origin of the money. Banks also cooperate with payment systems, which is a guarantee of reliability.

Cryptocurrency peer-to-peer transfers

P2P platforms are provided, for example, by Binance and Huobi cryptocurrency exchanges. Their advantage is that conversion as such does not occur, which means there is no need to combine payment methods and wallets. The method works as follows.

The sender and recipient are verified on the cryptocurrency exchange in their respective country.

The sender enters the P2P platform and chooses the counterparty at their discretion (criteria: the number of successful transfers, feedback, etc.). Due to competition, the P2P platform has the most favorable market rates.

The sender sends Indian rupees to the counterparty's bank card. The counterparty sends cryptocurrency from their account to the sender's account. Settlements are carried out in stablecoins, while the exchange acts as an arbitrator. ⠀

The sender sends the cryptocurrency to the recipient.

The recipient makes a similar mirrored transaction in the USA by sending cryptocurrency to a counterparty in their country and receiving USD on the card.

The advantage of this method is instant transfers and a wide range of payment methods. The speed of transactions within the country and on the cryptocurrency exchange is just a few minutes. Within the USA and India, you can choose counterparties with any payment method (e.g., any bank card). The disadvantage is that exchanges have almost no regulation.

Western Union

Western Union is an international money transfer system. It is not a payment system or a bank - it is an intermediary that transfers money from one point to another. You visit the company's office in India and specify the details of the recipient in the USA. The recipient in the USA receives the money at their office. The same can be done online through the banks servicing the payment. But there may be legal restrictions. Other disadvantages are a very high fee and restrictions on the amount to be sent. For example, a transfer from India to the USA is allowed for a maximum amount of 5,000 USD.

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Best payment systems and transfer methods from India to the USA

International transfers through payment systems are still the most popular method. They are most often used to buy goods, pay for services abroad, send money to relatives, friends, and business partners, pay for tourism services, etc. Below you will find information about several platforms that are distinguished by their reliability, optimal rate schedule, and high transfer speed.

Wise

Open an Account
Your capital is at risk.
Via Wise's secure website.

Wise is a payment system from the UK, licensed by the FCA, and one of the most reputable international regulators. To date, the system's services are used by more than 13 million people in more than 150 countries. Due to the large number of users, the system can offer the best exchange rates with relatively small fees.

Advantages of Wise payment system:

  • A multi-currency account that supports more than 50 currencies. Unlike many other systems, using Wise you can receive and send money in major currencies without the need for conversion.

  • There is a guaranteed exchange rate for most transfer options. This means that the exchange rate can be fixed for a short time interval, which protects against high volatility.

  • You can also use a service to notify you about changes in the exchange rate.

The transfer speed averages 1-3 days, and internal payments take place within a few hours.

Revolut

Open an Account
Your capital is at risk.
Via Revolut's secure website.

Revolut is a digital financial platform operating in more than 200 countries. The number of users is more than 20 million private clients and more than 950 legal entities. The platform supports the conversion and transfer of more than 30 currencies.

Advantages of Revolut payment system:

  • Transactions with cryptocurrency without commission.

  • No fees for most transactions.

  • A larger range of additional services for private clients: investing in metals and cryptocurrencies, personal accumulative virtual safes, and booking accommodation with cashback up to 10%.

The platform offers four rate plans, including the standard one, which is free. Paid accounts additionally offer various insurance services, a small deposit interest rate, accounts for children, one free SWIFT transfer per month, etc.

Curve

Open an Account
Your capital is at risk.
Via Curve's secure website.

Curve is a multi-card wallet that allows you to add more than 100 payment cards to one app. This is how it works: you have analyzed the conditions of payment systems and decided that the "A" payment system is suitable for international settlements with customers or online stores because it offers the most favorable exchange rate. You prefer to use a "B" bank card for foreign trips due to good cash back and small withdrawal fees. Then, you add cards to the app, order a Curve universal card, and activate the desired card in the app.

Advantages of the aggregator:

  • Favorable conversion conditions.

  • Cashback is available when paying within partner networks.

  • Free cash withdrawal in the USA and Europe within the partner ATM network.

On the platform's website, you can find information about card maintenance fees and services that are included in a particular rate.

Best Payment Options Compared

You can compare the rates of payment systems side-by-side in the table below. As the reference amount, TU took 10,000 Indian rupees, which was entered simultaneously into the calculators of payment systems on their websites.

Amount received by the recipient (USD) Fee (INR) Transaction time

Wise

119.33

329.94

3 days

Revolut

122.98

0

3 days

Skrill

119.81

0

1 day

Instarem

119.06

320

2-3 days

Western Union

122.70

0

1 day

How to convert INR to USD using a payment system

The common way of making international payments using payment systems:

1

Choose a payment system. In addition to secondary criteria (fees, payment processing speed, etc.), the set of payment methods is also important. If you often make international payments, the chain to the ultimate recipient must contain as few intermediaries and conversion operations as possible.

2

Open an account in the payment system and go through the verification process. Add the card opened in your name to your account and verify it. Note that you can't use cards opened in the name of another person.

3

Deposit money into your account. Most payment systems allow you to open an account in only one currency. If you have opened an account, for example, in USD, make a deposit to your account in that national currency, and the system will convert funds automatically.

4

Transfer the funds to the recipient. You can do this through the payment system used and transfer funds to other supported payment systems or bank cards.

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What to do if the recipient didn't receive the money but the money was debited from your account?

If for some reason, the payment was rejected, the money is returned to the sender's account in most cases. If this does not happen, immediately contact support. In this case, the recipient must also contact the support of their payment system. Each transaction has a unique tracking number which makes it possible to track the status of the transaction, such as whether it was suspended, whether it is labeled as "undetermined" or "blocked", etc. The sender can also request a refund of the fee charged by the payment system after the money is refunded.

Conclusion. There is no versatile method that would allow you to make international payments to anyone in the world quickly and without intermediaries. Each payment system has its functions, capabilities, and partners. To choose the best option: compare fees, make sure that the system supports the type of payment you need, then open accounts in several systems, and choose the one with which you are most comfortable.

FAQs

Which payment system is best for international transfers?

There is no best payment system. Each platform has its pros and cons. Payment systems differ in the amount of fees, the exchange rate, the speed of transactions, the available regions for deposit and withdrawal, partner networks, additional services, etc. You should choose what is most comfortable for you and what best suits your specific needs.

What are the main and secondary criteria for choosing a payment system?

A lot depends on your needs. If the speed of the transfer is important to you, then you can neglect the fee amount. Most pay attention to how much the recipient will receive, how to withdraw and how reliable the system is (based on reviews).

What is better for international transfers: banks, payment systems, or cryptocurrency?

In the payment structure, many participants are related to each other. For example, you can send money through a bank using the SWIFT system, but the bank also works with payment systems, so you choose what is best for you. Payments through banks have a major disadvantage because banks are strictly regulated by legislation and financial monitoring authorities. Payment systems are more loyal, but they have their limitations. Cryptocurrencies are the best option for fast transactions at the best exchange rate, and they provide for the use of any payment method on P2P platforms. But this option has an increased risk of account blocking.

What additional services do payment systems offer?

Additional services include: cashback, property and life insurance, investment tools, interest rate accrual on the positive balance, discounts, bonuses for paying for partner services, etc.

Team that worked on the article

Andrey Mastykin
Author, Financial Expert at Traders Union

Knows about
Trading strategies, technical analysis, Forex, stock market, long-term investing

Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.

He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.

Experience
Andrey's passion for finance began in 2009, and he has since accumulated extensive experience in trading and investing across various asset classes, including stocks, Forex, and cryptocurrencies.

He has spent over 15 years managing his own capital and working with financial portals, financial institutions, and IT companies, as a financial writer and analyst, further refining his investment expertise.

He is the author of several training courses on investing and trading in financial markets. Led multiple FX/Stocks/Crypto webinar educational presentations. Authored hundreds of articles on the global economy, stock, cryptocurrency, and Forex markets, along with trading strategies. He has also penned hundreds of professional reviews of financial firms.

Throughout his journey, Andrey has been heavily influenced by the works of renowned authors and investors like Benjamin Graham, Ray Dalio, Robert Shiller, and Nassim Taleb.

Olga Shendetskaya
Author and editor at Traders Union

Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.

Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.

Olga’s motto: Do well and you’ll be well!