Sending money home: your rights, costs and scams to avoid

Step 1 — Know when federal protections apply

Federal law calls most transfers abroad “remittance transfers”: electronic transfers of more than $15, sent by consumers in the U.S. to people or companies in other countries through a “remittance transfer provider” (CFPB). Banks and other financial companies can be providers (CFPB).

There are limits. A company that made 500 or fewer of these transfers last year and makes 500 or fewer this year is not a provider, so federal law doesn’t require it to give you these protections (CFPB). Some banks and credit unions are exempt from the federal error rules, though state laws may still apply (CFPB).

Step 2 — Compare the real cost before you pay

The fee is only part of the cost. Before and after you pay, a provider must give you information about (CFPB):

• the fees and taxes it collects from you;
• the exchange rate, if one applies (how much foreign currency you get for each U.S. dollar);
• fees charged by its agents abroad and by certain other institutions involved in the transfer;
• the amount of money expected to be delivered;
• if it applies, a statement that more foreign taxes and fees may be taken out.

In some cases, figures can be estimates, but they must be clearly labeled; if one looks wrong, ask the provider (CFPB).

Because you see this before you pay, “you can shop around and compare costs with other companies” (CFPB — Problems sending money). The easiest line to compare is the total to the recipient: in the CFPB’s sample, it is the amount in the other currency after the exchange rate and the other fees (CFPB — Send money abroad with more confidence).

The recipient’s bank may still take its own fees, and foreign taxes may apply. The provider must warn you about this upfront, but federal law doesn’t require it to tell you the amount; the person receiving the money can tell you what to expect (CFPB).

Your language: if a provider uses your language in its ads where you send the money, or makes the transfer in your language, it generally must give you the receipt and disclosures in that language (CFPB).

Step 3 — If you pay in cash: the new 1% federal tax

A federal law from July 2025, commonly known as the One, Big, Beautiful Bill Act, created this tax (IRS — Internal Revenue Bulletin 2026-18). Since January 1, 2026, the 1% tax applies to money sent from the U.S. to other countries when the sender gives the provider cash, a money order, a cashier’s check or another similar physical instrument (IRS — IR-2026-48). The sender owes the tax, and the provider collects it and pays it to the IRS (IRS).

As the IRS describes the law, the tax does not apply when the money is withdrawn from an account at certain financial institutions, or paid with a debit or credit card issued in the United States (IRS — Internal Revenue Bulletin 2026-18). In April 2026, the Treasury and the IRS proposed more detailed rules for this tax (IRS), so check the IRS page on the 2025 tax law for updates.

If a taxed transfer is canceled or expires and the provider doesn’t refund the tax, the sender may claim it back from the IRS on Form 8849, Schedule 6, with the provider’s receipts as proof (IRS — Instructions for Schedule 6).

Step 4 — Check the details, then keep your receipt

Double-check account numbers before you send: if you give a wrong account or routing number, you may not get the money back (CFPB). Also check the spelling of the recipient’s name, because they may not be able to collect the money if it doesn’t match their ID or account (CFPB).

After you pay, you generally get a receipt that shows (CFPB — Problems sending money):

• the total cost, the exchange rate and the total to the recipient;
• when the money will be available;
• what to do if there’s an error, and how to cancel;
• how to contact the company, the CFPB and the state agency that regulates the company.

Keep it: the “available” date on it starts your time to report a mistake (CFPB).

Step 5 — Changed your mind? You have 30 minutes

You can cancel a remittance transfer at no cost if (CFPB — Can I cancel?):

• you paid less than 30 minutes ago;
• the recipient hasn’t picked up the money, and it hasn’t been deposited into their account;
• you give the provider enough information to find the transfer.

If you scheduled a transfer in advance, you may cancel it up to three business days before it is made (CFPB). State law or the provider’s own rules may give you more time, and your receipt should generally state your cancellation period (CFPB).

Step 6 — If something goes wrong, report it quickly

Providers generally must correct mistakes such as a wrong amount charged to you, a wrong amount delivered, money that arrives late or never arrives, money delivered to the wrong person, and some mistakes in the information you gave (CFPB).

You have 180 days from the date the money was supposed to be available to report the error, but don’t delay: contact the provider right away, and consider following up in writing (CFPB). Give your name and contact details, the recipient’s name and contact details, the amount and what went wrong; a confirmation code and the transfer date help too (CFPB).

The provider has 90 days to investigate and must tell you the results within three business days after it finishes (CFPB). For many errors, such as money that never arrived, you may get a refund or have the transfer sent again (CFPB). But if you gave a wrong account or routing number, the provider doesn’t have to refund or resend if it took certain steps to check the details and recover the money quickly (CFPB).

Step 7 — Still not fixed? Submit a complaint

If the company doesn’t solve the problem, you can submit a complaint to the CFPB, which forwards it to the company and works to get you a response, generally within 15 days (CFPB — Problems sending money). Include the key facts, dates, amounts and documents, because you generally can’t submit a second complaint about the same problem (CFPB — Submit a complaint). Your state attorney general or state financial regulator can explain your state’s protections (CFPB).