How to Send Money Abroad: What to Know Before Every Transfer

When making a transfer abroad, most people focus solely on the upfront transaction or commission fee. In reality, the true cost of sending money is twofold—and the second part is only visible if you look closely at the exchange rate.

• The fixed transfer fee: This is the flat rate that a bank or payment platform clearly publishes in its pricing list. It is upfront, visible, and easy to understand.
• The currency exchange margin: This is the difference between the real market rate (often called the mid-market or interbank rate) and the rate offered to you by the financial institution. For example, if the actual EUR/USD rate today is 1.08, you might be offered 1.05. That 0.03 difference is a hidden markup pocketed by the provider. It is an invisible charge paid by anyone who skips the fine print.

A Simple Example: Transferring €1,000 to the US

• Stated transfer fee: €13 (seems reasonable enough).
• Currency exchange margin (2%): €20 (the hidden charge).
• The actual cost of your transfer: €33, not €13.

This is why you should always look at the total, final cost of your transfer—not just the advertised commission fee—when comparing providers.

Before hitting "send" on your next payment, it helps to understand the underlying infrastructure. International transfers generally travel along one of three main routes.

1. SEPA: The European Payments Motorway

SEPA (Single Euro Payments Area) is a zone of 36 countries where euro transfers are executed under the exact same conditions as local domestic payments. The zone includes all EU member states, alongside Norway, Switzerland, Iceland, Liechtenstein, and the UK.

Because payments travel directly between banks using a unified European infrastructure—bypassing intermediary banks—SEPA is incredibly cost-effective. For instance, with Paysera, private clients get up to 30 free SEPA transfers per month (and just €0.30 per transfer thereafter).

SEPA also has a high-speed lane: SEPA Instant (Instant Euro Transfers). The funds reach the recipient in as little as 10 seconds. The system operates around the clock (24/7/365), including weekends and public holidays. Because Paysera is a direct participant in the T2 system, these payments are processed instantly and securely without intermediate commercial banks.

• When to use it: Whenever you are sending euros to any of the 36 SEPA countries. It is the fastest and most economical option.

2. SWIFT: The Global (But Complex) Route

SWIFT is an international messaging network connecting over 11,000 financial institutions globally. It is the default system used for transfers in other currencies (such as USD, GBP, or JPY) or when sending funds to countries outside the SEPA zone (including the US, Asia, and Australia).

SWIFT transactions are more expensive for one simple reason: your money has to navigate a chain of intermediary (or correspondent) banks to reach its destination. Each bank along the way can slice off its own fee. As a result, a traditional bank might quote you an upfront fee of €13 or more for a SWIFT transfer, but your recipient still ends up receiving less than you sent because of these intermediary cuts.

• When to use it: When sending a currency other than the euro, or when sending funds outside the SEPA zone. It is also required if the recipient’s account can only accept their local, non-euro currency.

3. T2 (Formerly TARGET2): The Central Bank Super-Highway

If SWIFT is a global postal network for various currencies, T2 is a "super-highway" operated directly by the European Central Bank (ECB), designed exclusively for large-scale euro settlements.

Unlike standard SEPA, which processes payments in batches a few times a day, T2 is a Real-Time Gross Settlement (RTGS) system. It settles transactions individually and instantly. Because payments are finalised directly at the central bank, settlement risk is virtually zero.

As a direct participant in the T2 system, Paysera routes your euros straight to the recipient's bank, completely bypassing intermediary commercial banks. This eliminates surprise middleman fees, making large-scale transfers both cheaper and faster.

• When to use it: When you need to transfer large euro amounts to partners or suppliers in other European countries urgently, securely, and without any intermediary bank fees.

Fintech (financial technology) platforms like Paysera tap into the same SEPA and SWIFT rails as traditional banks. However, they can pass on significant savings thanks to leaner overheads (no physical branch networks), advanced technology, and far more transparent pricing structures.

Crucially, they usually display the total, all-inclusive cost of your transfer—currency exchange margin included—before you hit send. No guesswork, no surprises.

When you send money in a different currency, the heaviest fee is usually hidden in plain sight: the currency conversion rate. This is the markup financial providers talk about the least.

• The interbank rate (mid-market rate): The midpoint between the buy and sell prices on global markets—the "real" rate you see on Google or financial portals. This is the rate at which banks trade currency with one another.
• The commercial rate: The retail rate a financial institution offers you. It is almost always worse than the interbank rate. The gap between these two rates is the FX margin—pure profit for the provider.

• Real mid-market EUR/USD rate: 1.0800
• Your bank's offered rate: 1.0500
• The spread (margin): 0.0300 (roughly 2.8%)

By converting €2,000 at this commercial rate, you lose approximately €56 to the markup alone.

Top tip: Always run a quick search on Google (e.g., type "EUR to USD") to check the current mid-market rate before you commit. If the spread is wide, shop around for a fintech platform with tighter, more competitive margins.

When setting up a SWIFT transfer, you will be prompted to choose how the transaction fees are split:

• SHA (Shared): The standard and most common option. You pay your own bank's or platform's transfer fee, while the recipient’s bank may deduct its own commission fee from the incoming funds. The recipient might receive slightly less than the exact amount you sent.
• OUR (Sender Pays All): You cover all upfront and incoming fees, guaranteeing that your recipient receives the exact amount down to the last penny. This option costs more for the sender.

Which should you choose? For everyday personal transfers, SHA is the standard and usually the most cost-effective choice. Opt for OUR only when it is critical that the recipient receives an exact amount—such as when settling a precise commercial invoice or tax payment.

1. Create your account in minutes: Download the Paysera Super App from the App Store or Google Play, enter your basic details, and set up a secure password.
2. Verify your identity: Upload a quick photo of your passport, ID card, or residence permit. Personal accounts are typically verified within 1 to 24 hours (or 1 to 3 business days for businesses).
3. Complete the KYC questionnaire: As a regulated financial institution, we must ask a few standard security questions about your financial profile. Payouts and transfers will be temporarily restricted until this is submitted.
4. Top up your balance: The fastest, most cost-effective way is to make a free SEPA transfer from your other bank account directly to your Paysera IBAN. Alternatively, you can top up with cash at partner self-service points using a barcode generated in the app.
5. Execute the transfer: Tap Transfer in the app ➔ input the recipient's IBAN (for SEPA) or IBAN and SWIFT code (for international SWIFT) ➔ choose your destination country and currency. Because Paysera is a multi-currency account, you can convert your funds instantly before sending. Always review the fees and the real-time exchange rate beforehand using our online calculator.
6. Track your payment: Monitor your transfer's journey in real time right from the app. SEPA Instant transactions clear in under 10 seconds; for SWIFT, you will receive an automatic email and app notification when the funds are on their way.

What is the cheapest way to send money internationally?

The cheapest route is a standard euro (SEPA) transfer to any of the 36 SEPA zone countries. For other currencies or destinations outside Europe, you will use SWIFT, which incurs intermediary bank fees. To avoid overpaying, look for a platform that clearly breaks down both the transfer fee and the exchange rate margin upfront.

What is the difference between SEPA and SWIFT transfers?

• SEPA is a European system designed exclusively for euro transfers between 36 member countries. It is incredibly fast, highly regulated, and either free or extremely cheap.
• SWIFT is a global network for sending almost any currency to any country outside SEPA. It takes longer (1 to 5 business days) and costs more because your money passes through intermediary banks.

What is a currency exchange margin and how do I avoid overpaying?

It is the difference between the real market exchange rate and the retail rate offered by a bank. To avoid overpaying, look for transparent fintech platforms that show you exactly how much your recipient will receive after conversion before you hit confirm.

How long does an international transfer take?

• Paysera SEPA Instant: Under 10 seconds, running 24/7/365.
• Standard SEPA: Up to 1 business day.
• SWIFT: 1 to 5 business days, depending on the recipient’s country and the path through intermediary banks.

Is it safe to send money with Paysera?

Yes, absolutely. Paysera is a fully licensed Electronic Money Institution (EMI) regulated by the Bank of Lithuania under strict EU rules. Client funds are kept completely segregated from company funds and are never used for corporate operations or lending.

Are there limits on international transfers?

The maximum limit for a single Paysera SEPA Instant transaction is €100,000. However, we highly recommend checking your individual account limits inside the app before executing a major transfer, as your default limits may be set lower for safety.

If your identity is fully verified and your KYC questionnaire is up to date, you can manually increase your limits directly inside the mobile app. Please note that for security reasons, newly requested limits take 12 hours to activate. If you require completely unrestricted pervedimai (unlimited transfers), you will be prompted to complete an additional identity verification step.

• An international transfer always has two costs: a flat fee and a currency exchange markup. While the flat fee is easy to compare, the exchange rate margin is often hidden.
• For transfers in euros within Europe, always use SEPA or SEPA Instant for the fastest, cheapest path.
• When sending other currencies via SWIFT, expect higher costs due to intermediary bank fees. To minimise expenses, use transparent platforms that show the total, all-inclusive cost upfront.

Take control of your international transfers. Open a Paysera account today and send money with total transparency.