Managing money across borders is one of the biggest practical challenges for Americans living abroad — and getting it wrong can be expensive. At the 2025 US Expats Financial Conference, Ankita D’Mello, Head of Payments North America at Wise, shared valuable insights in her session on International Currency Transfer Considerations and Strategies, discussing how expats can avoid hidden fees, simplify multi-currency living, and take control of their finances while moving or living overseas.
The Pitfalls of Traditional International Transfers
Many US expats continue to rely on their domestic banks for international money transfers — often unaware of the hidden costs involved. Traditional banks frequently advertise “no fees” but offer significantly worse exchange rates than the mid-market rate, quietly reducing the amount received on the other end of the transfer.
This difference can become especially problematic when transferring large sums, such as when paying tuition fees, purchasing property, or funding relocation expenses. Without visibility into the actual exchange rate used, it’s easy to underpay a bill or fall short of the intended amount.
Tip: Always check the exchange rate a provider is using and compare it to the mid-market rate found on Google or currency tracking sites.
Multi-Currency Tools: Practical Options for Expats
Services like Wise have emerged to solve these challenges by providing greater transparency, speed, and flexibility. For expats, the most useful features include:
- Sending money abroad with upfront exchange rates and clear fees
- Receiving local account details (e.g. UK sort code and account number, or US routing and account number) in multiple currencies
- Holding and converting balances across currencies without needing a local bank account
- Using a debit card tied to those balances to avoid foreign transaction fees
These tools make it easier to move money between countries, set up payments in a new location, and bridge the gap between banking systems — particularly during the early days of relocation when traditional account setup might not be possible.
Common Scenarios for Currency Transfers
For US expats, international transfers are often necessary at multiple points in their journey. Common use cases include:
- Relocation expenses such as deposits and rent in a new country
- Sending money home for mortgages, utility bills, or family support
- Receiving payments from employers, clients, or government bodies
- Travel and reimbursement where receiving local currency is more convenient
Having access to a service that supports local account details and real-time conversion makes these tasks significantly easier and often more cost-effective.
Timing Matters: Getting the Best Rate
Exchange rates fluctuate — sometimes dramatically — so timing your transfers can have a real financial impact. Expats are encouraged to:
- Set up rate alerts to notify them when favorable exchange rates are available
- Compare services side by side before making large transfers
- Take advantage of fee discounts (some services offer lower fees for high-value transfers)
While speed is sometimes a priority, particularly during an emergency, those who can afford to wait may benefit from better conversion rates.
What to Know About Taxes and Verification
Expats sending large amounts of money across borders should be aware that most services require documentation for compliance and anti-money laundering checks. This may include proof of income, the source of funds, or the reason for the transfer — particularly for property purchases or investment-related activity.
In terms of US tax reporting, US citizens must also consider whether their foreign accounts meet the thresholds for reporting on an FBAR (Foreign Bank Account Report). If a multicurrency account is registered in another country and exceeds the annual threshold, it may need to be declared — even if it’s used primarily for everyday transactions.
Tip: Transferring money is not a taxable event in itself, but the origin of the funds (such as income or investment gains) may be subject to tax. Expats should consult a qualified tax advisor to avoid pitfalls like double taxation.
Key Considerations When Choosing a Currency Transfer Service
When evaluating international money transfer providers, expats should consider:
- Transparency: Is the exchange rate shown upfront? Are fees clearly stated?
- Speed: How quickly does the money arrive? Is instant transfer supported?
- Flexibility: Can you hold and convert between multiple currencies? Can you access a local account number?
- Regulation: Is the provider licensed and regulated in your home and destination country?
- Support: Is there 24/7 customer service in case of issues?
Some providers also support features such as recurring payments, integration with IRS payment systems, and interest-bearing balances, depending on your location.
Financial Preparedness Starts Before You Move
Managing money across borders is far less stressful when you prepare ahead of time. By choosing the right transfer services, setting up local accounts early, and timing your exchanges strategically, US expats can avoid unnecessary costs and maintain control of their finances from day one abroad.
The goal is simple: keep more of your money working for you, not lost to hidden fees or poor exchange rates. Services like Wise — and others with similar capabilities — can help bridge the gap between domestic and international banking, giving you the flexibility and transparency you need to thrive overseas.
To put these ideas into action, here’s a checklist of final tips you can start using right now:
- Compare exchange rates — don’t default to your domestic bank
- Check if foreign balances need to be reported on your FBAR
- Use a multi-currency account to receive payments or salary
- Watch for foreign transaction fees on credit cards
- Keep records of large transfers for tax purposes
- Automate regular payments like rent or tuition
With the right planning, your money can move as freely as you do. For free, no-obligation quotes from leading foreign exchange brokers, click here.