Banking today is easier than ever. With just a click of a button, you can send money, make payments, and manage your finances from your phone or computer. We know how to perform the actions, even with our eyes closed, but every now and then, we come across vocabulary we’re unfamiliar with.
If you’re sending money for the first time internationally, it’s helpful to get familiar with different banking terms you’ll most likely come across. Yes, it’s a simple money transfer—but did you know that sending money abroad to loved ones is actually called a remittance?
At Remitly, we want you to always be informed, which is why we’ve put together a simple money transfer dictionary—an easy guide to help you understand every step of the process when sending money abroad.
Understanding the basics: money transfer terms
To get started, let’s look at some basic vocabulary before you send any money. These terms will help you understand the cost of sending money abroad.
Exchange rate
The exchange rate is the value or rate at which money from one country can be exchanged for money of another country.
For instance, one US dollar doesn’t equal one euro. When exchanging US dollars for euros, it depends on market conditions.
Here’s an example of a currency conversion* for US dollars and euros.
From US dollar to euro:
$1.00 USD → €0.87 EUR
From euro to US dollar:
€1.00 EUR → $1.16 USD
* Currency conversion correct as of 28 November 2025.
Global markets, economic conditions, and supply and demand all affect currency conversions. That’s why exchange rates are constantly changing and exchange rates can look different just days apart.
If you’re looking to monitor rates before sending money, you can check out the US Federal Reserve for official rates.
However, while the official rates give you an idea of the currency exchange, banks and providers can have slightly higher or lower rates, and it’s best to check with the provider you’ll send your money with for a better idea of rates.
Transfer fee
A transfer fee is the cost a bank or money transfer service charges to send your money across borders.
Basically, transfer fees are what you pay to get your money moving. Banks and other services may use different terms for transfer fees. We’ve put together a short list to help you avoid any confusion.
Different transfer fee terms:
- Currency conversion fees
- Service fees
- Foreign transaction fees
- Delivery or receiving fees
No matter which term is used, this is often the cost you’ll pay to make an international money transfer.
While it might be easier to send through your bank, it’s always best to read the fine print to check for any hidden fees.
For instance, if you’re sending money through your bank, depending on your account type, fees might be waived. However, the bank receiving the funds might charge a fee that comes out of the money you’re sending. Understanding all options will ensure that as much of your money transfer as possible goes to your loved one.
Sender (remitter)
The sender or remitter is the person initiating the transfer.
Recipient (beneficiary)
The recipient or beneficiary is the person receiving the funds.
Types of delivery methods: how your money gets from point A to B
Different providers offer different delivery methods. With so many options, it can feel overwhelming, especially when you’re sending money across borders. Understanding the different delivery terms, however, can go a long way toward helping you get the most out of your money.
Take your time when choosing your delivery method. It’s all about choosing the option that works best for you and your recipient.
Bank transfer
A bank transfer sends money directly to your recipient’s bank account.
Bank transfers are among the most secure and widely used methods because banks and transfer services can verify identities and comply with regulations. Think of bank transfers as the classic, dependable option.
There are two different kinds of bank transfers:
- Wire transfers: commonly used for international transfers
- ACH transfers: typically used for domestic payments within the US
Wire transfers are often the preferred method for international transfers, as they’re the easiest way to convert currency and move funds across borders.
Cash pickup
Cash pickup allows your recipient to collect physical cash at a partner location, such as a bank branch or a currency exchange location. When banking options are limited, cash pickup transfers can be one of the safest ways to send money.
Cash pickup can be ideal if:
- The recipient lives in a rural area
- Their bank access is limited
- They need funds fast
Mobile money/mobile wallet
Mobile money, or a mobile wallet, is a digital wallet stored on your phone. Mobile wallets let you store and use money electronically, without a bank account. Transfers to mobile wallets are growing rapidly, as they easily and quickly move money across borders.
Many international money transfer providers like Remitly support mobile wallet delivery, making remittances more accessible than ever.
Mobile money is popular because it’s:
- Fast
- Easy
- Don’t require a bank account
- Great for everyday payments and international transfers
Home delivery
Some services offer cash home delivery, meaning the funds are physically delivered to your recipient’s address.
Many money transfer providers offer a home delivery service, such as Remitly. While this service isn’t as common as the others, it can be a great option for recipients with mobility challenges or for those who cannot easily leave their homes.
Important codes and numbers explained: banking vocabulary made easy
When sending money abroad for the first time, you might come across terms that aren’t as common in the US. But if you want to send your money quickly, knowing specific vocabulary will ensure you have all the information you need.
IBAN
The International Bank Account Number, or IBAN, is a standardized bank account number used primarily across Europe, the Middle East, and parts of Africa.
The IBAN helps prevent errors by ensuring the bank account format is consistent. If you want to send money from the US to Spain, you’ll need the recipient’s IBAN. Put simply, this is a bank account number.
All IBANs begin with a country code. For example, in Spain, the IBAN starts with ES, while in Germany, it starts with DE.
SWIFT/BIC code
A SWIFT or BIC code identifies a specific bank in the international banking system. This code is used globally to route money between banks.
Routing number
A routing number is a nine-digit code used for transactions within the United States and, sometimes, for sending money abroad.
Your banking details, whether through your bank or a money transfer service like Remitly, will be needed to transfer your money abroad properly. While most international transfers require SWIFT codes, your routing number may also be required.
A good thing to keep in mind: your routing number isn’t the same as your account number. If you have trouble finding this number in your account, reach out to your bank or check their website. This way, you can have your routing number on hand whenever you may need it.
Other key terms to know
Now that we’ve gone through the most common key terms, here are a few more to keep in mind. When transferring money internationally, knowing these terms will ensure your money reaches its destination and help prevent unnecessary delays.
Currency codes
Currency codes specify the currency you want to transfer. This is an important code to watch because many countries use the same currency signs and names. For example, both the US and Australia use the $ sign and call their currency dollars.
Choosing AUD for the Australian dollar ensures your money is correctly converted from USD to AUD.
Transfer speed/delivery time
Transfer speed or delivery time refers to how long it takes for your money to arrive. This depends on:
- The service you choose
- The receiving country
- Transfer method (e.g. bank transfer vs. cash pickup)
- Verification requirements
- Time of day
Some transfers are nearly instant, while others can take multiple business days. For instance, many banks have cut-off times for transfers, so if you send a transfer after 6 p.m., your transfer might not arrive until the next day or even the following Monday.
Checking for remittance rules and verification requirements can help you understand just how long it might take for your money to arrive.
Daily/monthly limits
Your provider may limit how much money you can send in a day or month. These limits depend on:
- Your account type
- Local laws
- Anti-money laundering (AML) regulations
Large transfers often require further verification for safety. If you need to send a larger transfer, it might be a good idea to reach out to your bank or provider to find the best method. This will also prevent your account from being flagged or your transfer from being further delayed.
Proof of funds
Proof of funds is a security step taken especially for large transfers. When asked for proof of funds, you may be required to provide bank statements, tax forms, or even pension information. This extra step can also ensure that those sending money abroad aren’t scammed out of large sums.
Banks and money transfer services must follow regulations set by global authorities, such as the Financial Action Task Force (FATF).
Send money with confidence
Sending money to loved ones is one of the best ways we can help out those we care about. However, navigating online banking isn’t always easy, especially when you’re sending money abroad. The good news is that you now have a handy guide—a dictionary—for your reference if you need one.
Understanding the varied vocabulary used by different providers will ensure you’re sending your money correctly and avoiding extra or hidden fees.
Want to learn more about finance and banking? Check out our blog for more.
FAQs
Is there a limit to how much money I can transfer internationally?
Yes, banks and money transfer services can set daily or monthly limits on how much you can transfer internationally.
Is a transfer fee the same as the exchange rate?
No, the exchange rate is how much money you can get when currency is converted to another. A transfer fee is what you pay to have your money transferred from one account to another.
Do I need all these codes (SWIFT, IBAN) for every transfer?
If you’re sending money abroad for the first time, you’ll need the recipient’s full name, SWIFT code, and IBAN. However, you might not need to provide this information every time, especially if you’re sending recurring transfers.
Why is the exchange rate different from the examples given in the article?
Exchange rates change from day to day. When sending money abroad, it’s a good idea to check the exchange rate on the day you’ll send the money rather than a few days before.
What is the cheapest way to transfer money internationally?
How much it costs to send money abroad will depend on the destination, amount, and chosen method. It’s worth comparing exchange rates and transfer fees from different providers before making a payment.
How can I make sure my money transfer is safe?
Look for reputable companies with strong security measures, clear customer support, and delivery promises. Remember, if something is too good to be true, it probably is.