How an international money transfer works

Who can send it for you

Moneysmart describes two kinds of provider.

• Your bank. Banks send money to banks in other countries using a system called SWIFT, which connects financial institutions around the world. Existing customers usually send through online banking or at a branch; if you are not a customer, the bank will ask for government-issued identification.
• A money transfer business. Also called a remittance service provider, it is an individual, business or organisation that sends money to someone in another country. It can pay into a bank account or let the person collect the money at a local branch or agent, and many operate only online, through a website or an app.

The Reserve Bank’s glossary defines SWIFT, the Society for Worldwide Interbank Financial Telecommunication, as a co-operative organisation that operates a network for exchanging payment and other financial messages between financial institutions.

In Australia, money transfer businesses must be registered with AUSTRAC, the Australian Transaction Reports and Analysis Centre, and Moneysmart says to check that a business is registered before you use it. Checking a remittance provider explains how.

Three ways the money can travel

The ACCC’s 2019 inquiry into foreign currency conversion services found that suppliers send transfers in at least three ways.

Non-bank suppliers can use correspondent networks too. The ACCC describes some that combine the money collected from their customers and send the balance to a bank account in the destination country, from which it is paid out to each recipient. The RBA’s February 2026 Bulletin adds that many non-bank providers are “closed loop”: they operate in both the sending and receiving countries and keep central records, which helps them avoid some of the costs of going through correspondent banks.

The legs of a transfer, in order

Every provider has its own process. This is the general shape, drawn from the official sources on this page.

1. You give the instruction, and prove who you are

   Businesses regulated by AUSTRAC need to know you are who you claim to be; this is part of their customer due diligence. AUSTRAC says a registered remittance service provider will ask you to show identification documents when you transfer money.

2. Your dollars are converted

   The provider chooses the exchange rate it uses and charges its fees. How those two combine into one price is the subject of exchange rate margins and fees.

3. A message goes ahead of the money

   Electronic payments rely on messages that instruct the flow of funds between financial institutions. The RBA reports that individual banks in Australia had moved their outbound cross-border payments to the richer, more structured ISO 20022 messaging standard by November 2025.

4. Correspondent banks pass it on

   Each correspondent bank can charge a fee, and the receiving bank can charge one too. These are usually deducted from the amount being sent, and the ACCC found it may not be possible to identify every such fee when the transfer starts, especially when it passes through several banks.

5. The provider reports the instruction

   A business that sends an international funds transfer instruction out of Australia must report it to AUSTRAC within 10 business days. That is the provider’s duty, described in reporting rules and the $10,000 line.

6. The money arrives

   Depending on the service, the recipient may get a bank deposit, a cash pick-up, cash delivery, money in an online wallet linked to a phone number, or a deposit to a crypto-asset exchange. Moneysmart says a transfer could be instant, take a few minutes or take up to five business days.

Why some transfers are slow

The RBA says some cross-border payments settle within minutes while others take several days to reach the recipient. The longer waits usually come from frictions in banks’ processes and domestic payment systems: limited operating hours, time-consuming compliance checks, and errors or inconsistencies in the messages. It also thinks Australia’s distinct time zone is likely to be a key factor delaying payments to and from Australia.

Under the G20 Roadmap for Enhancing Cross-border Payments, the speed target is for 75 per cent of payments to be available within one hour, and the rest within one business day, by the end of 2027. In February 2026 the RBA assessed that Australia is not yet meeting it.

If a transfer goes wrong

Moneysmart’s advice is to contact the bank or money transfer business first. If you are not happy with its response and it is a member of the Australian Financial Complaints Authority, you can complain to AFCA.

A payment to a scammer is different. Moneysmart warns that if you send money to someone who turns out to be a scammer, it is almost impossible to get it back. Money transfer scams covers the warning signs.