- Looking to transfer money down to Brazil?
- Discover cheaper ways to do currency transfers USD to BRL than most US banks.
- Learn what to look for when choosing the best way to transfer money.
Do you need to send money to Brazil from America? Here is everything you need to know about processing your international money payment successfully.
In this guide
- Common reasons people transfer money overseas to Brazil
- Why you shouldn't send money overseas using your bank
- Is it safe to use a money transfer company?
- USD / Brazil exchange rates
- What are the fees?
- Minimum and maximum transfer amounts
- Alternative ways to send money to Brazil
- Business vs. personal considerations
Common reasons people transfer money overseas to Brazil
- Sending money back home to family
- Buying property
- Business expenses, like paying suppliers or freelancers
- Paying for education overseas
- Getting married overseas
- Charitable donations
Why you shouldn't send money overseas using your bank
Your bank might not be the best option for sending money from the States to Brazil. They have the highest exchange rates and fees. Some banks charge flat transaction fees of as much as $64. If you're sending a small amount, the cost of a bank wire transaction is not viable.
Using a private money transfer firm is the superior choice to a bank wire. These service providers undercut the bank's costs, allowing you to send money with lower fees and faster processing times.
Is it safe to use a money transfer company?
Yes. Browse through the online money transfer services listed on Finty. You'll find access to reputable, established companies licensed to operate in almost every country worldwide, including the US and Brazil.
USD / Brazil exchange rates
The most significant expense involved with sending money to Brazil is the exchange rate. Banks and private money services offer you a "spread" between the buy/sell rate between US Dollars and Brazilian Real.
For instance the current rate might be 1USD = 5BRL. However, the bank may add a spread making it 1USD = 4.8BRL, in order to make their margin. As a result, you end up paying more. Private money transfer companies have cheaper spreads than banks and even lower transaction costs.
For instance, sending money with PayPal, Skrill, or Wise are far cheaper than using the bank. Some platforms will also let you lock in your exchange rate for 24 hours to reduce price volatility when sending your cash.
What are the fees?
You'll pay an international transfer fee on your transaction, along with a margin on the daily exchange rate. Some providers charge no margin on the currency conversion, but will have a transaction fee based on the amount of money you are transferring.
What is a typical fee?
Typically, fees on money transfers with banks are around 5% of the total amount. The bank may also charge the recipient anywhere from $15 to $30 for collecting the money. The fee depends on the size of the transaction, but it's usually expensive.
Using other providers helps you save on fees. Some providers don't charge anything other than the margin rate and no fees for collecting on the recipient's end.
Can fees be avoided?
Yes, you can avoid bank transaction fees by using alternative payment methods like e-wallets and cryptocurrency. These options have lower costs and faster transaction times than using your bank.
Minimum and maximum transfer amounts
Private money transfer companies vary in rates and limits. Check with each provider for limits. For large amounts over $5,000, your bank is the safest choice. However, for smaller transactions, compare the exchange rate between firms, and consider the additional fees you'll pay over the exchange rate.
If you're using a private money transfer service on the recommended Finty list, you may have a minimum transfer amount for the transaction. This limit can vary between providers, with some letting you send amounts as low as $100. PayPal, for example, doesn't have any minimum transfer amount.
Most private money transfer companies like WorldRemit have a $10,000 limit on transactions to send money to Brazil. If you're using these services, check the limit before sending the cash. You may need to use a wire transfer if you're sending more than $10,000 to Brazil.
However, e-wallet providers may require you to verify your identity before you can send large amounts over $100.
Alternative ways to send money to Brazil
If you want to sidestep the financial system, you can send money overseas using e-wallets like Skrill and PayPal or cryptocurrency. Fees vary between e-wallet providers and crypto networks, so do your homework before using these alternatives.
For example, Dogecoin fees are much lower than Ethereum charges. Transfers are fast, taking anywhere from seconds to a few hours, depending on the strain on the network. Options like Google Pay and Apple Pay also offer you faster, more affordable methods of sending money from the US to Brazil.
Business vs. personal considerations
When sending money overseas to Brazil, you'll need to prove your identity to fulfill KYC and AML obligations. It's not possible to send money anonymously using the traditional financial system.
The sender needs to complete a form providing their ID number, and some firms may require a copy of your ID document or passport for the transaction.
The recipient will also need to produce an ID document on collecting the money. These systems apply regardless of whether you're a private individual or a business.
How can I fund my money transfer?
You have several options for funding your money transfer. You can use the traditional bank transfer or other private payment websites or systems like Bank transfer, BPAY, Osko, Poli, or Wise. E-wallets are one other option.
How fast can my money transfer be sent to Brazil?
Sending cash with a service like MoneyGram or Western Union is the faster option. With these options, you'll have your money within 24 hours. Sending via the bank may take up to 72 hours for the funds to reflect in your account.
What are the money collection options?
When someone sends you a money transfer, you can collect it at several locations. If you're using MoneyGram, Western Union, or a similar service, you can collect from local outlets near you. If you're receiving money through your bank, you should receive a notification on your phone when it arrives.
Are there any tax considerations?
There are tax considerations for the recipient. Depending on the size of the money transfer, you could be liable for gift taxes. Check with an accountant or review local tax guidelines before arranging any transfer.