How can I send money by online banking overseas?

Sending money overseas through online banking is a common request, and there are a few primary ways to approach it, each with its own benefits and drawbacks. Generally, when people refer to "online banking" for international transfers, they're thinking about initiating a wire transfer directly from their bank's website or app.

A bank wire transfer is a reliable method, and you can usually initiate it through your bank's online portal. You'll typically need the recipient's full name and address, their bank's name and address, their SWIFT/BIC code, and their International Bank Account Number (IBAN) for most international destinations, or an account number and routing number for certain countries like the US. The money is sent directly from your bank account to the recipient's bank account. The upside is security and familiarity; it feels safe because it's your bank. The downside is often the cost and speed. Banks tend to have higher fees, sometimes a flat fee for outgoing international wires that can range from $25 to $50, and their exchange rates usually include a significant markup compared to the mid-market rate. Processing times can also be slower, often taking 1-5 business days, partly due to the correspondent banking network used by SWIFT. You might also encounter cut-off times; if you initiate the transfer after a certain hour, it won't be processed until the next business day.

Now, while you initiate a bank wire through your online banking, it's crucial to understand that many modern fintech platforms also allow you to send money internationally *from* your bank account, but they aren't your bank. These are licensed money transmitters, and they often offer a much more competitive alternative. Companies like Wise (formerly TransferWise), Remitly, WorldRemit, OFX, and Xe specialize in international transfers. You link your bank account to their platform online, and they handle the conversion and transfer.

For example, Wise is well-known for offering close to the mid-market exchange rate with transparent, low fees, making it a very cost-effective option for many. They also offer multi-currency accounts that can be useful. Remitly and WorldRemit are strong contenders, especially for remittances to emerging markets like Mexico, the Philippines, or India, often providing options like cash pickup, mobile money deposits, or even door-to-door delivery in some regions, alongside direct bank deposits. OFX and Xe are often favored for larger transfers or by businesses due to their competitive rates and dedicated account managers.

The key difference with these specialized services is typically better exchange rates and lower overall costs compared to traditional banks, and often faster delivery times, sometimes even same-day or within minutes for certain corridors and delivery methods. They operate under different licensing structures than banks, being regulated as Money Service Businesses (MSBs), which means they adhere to strict consumer protection and anti-money laundering (AML) regulations, including KYC verification. When using them, you'll still be transferring funds *from* your online bank account to their system, but then they forward it to the recipient, bypassing the traditional correspondent bank chain that often adds fees and delays.

So, when you think about sending money "by online banking overseas," you're really choosing between two main paths: directly through your bank's wire transfer service, or using a specialized online money transfer service that funds the transfer from your bank account. For most people looking for the best rates and lowest fees, especially for personal remittances, the specialized online money transfer services are usually the better choice. Just remember to compare their current exchange rates and fees for your specific destination before committing. And always double-check all recipient details to avoid delays or lost funds.