Transferring money from the USA to Ukraine: the six most popular ways

 

According to the National Bank, about 20% of the total volume of private money transfers to Ukraine is occupied by transfers from the United States. The number of transactions every year also tends to increase. And before each sender of money, the question arises: how to transfer money in the safest and most economical way? - Prostobank.ua was looking for an answer.

The choice of transfer method depends on whether the transfer will be carried out regularly (for example, in the case when the sender sends part of the earnings every month) or one-time, as well as on the amount of the transfer itself.

Transfer using international money transfer systems

The easiest and time-tested way is to use the services of international money transfer systems. Contrary to popular belief that this is one of the most expensive transfer methods, the operators of this market did not stand still and prepared new tariff proposals depending on the method of payment of the commission for the transfer, which eventually made it possible to lower the tariff down to $ 3 per transfer in the amount of $990.

The most popular and well-known companies in this market are Western Union and MoneyGram. Less known in Ukraine, but no less reliable and convenient, is the RIA system. By the way, this is the third company in the world in terms of the volume of payments made, and in Ukraine it cooperates with PrivatBank, Universal Bank, Pivdenny, CREDIT DNEPR bank, Oschadbank and others.

Prostobank.ua has studied the tariffs for transferring the most popular amounts in case they are paid in cash to the recipient as of January 2022.

Western Union:

- transfer amount - $1,000

- from a bank account - transfer fee - $13

- payment from a debit card - $49

- credit card payment - $76

3 000$

- from a bank account - transfer fee - $16

- payment from a debit card - $150

- credit card payment - $227

5 000$

- from a bank account - transfer fee - $35

- payment from a debit card - $165

- credit card payment - $292

MoneyGram:

 

- transfer amount - $1,000

- from a bank account - commission for transfer - $ 4.99

- payment from a debit card - $ 14.99

- credit card payment - $34.99

3 000$

- from a bank account - commission for transfer - $ 4.99

- payment from a debit card - $ 34.99

- credit card payment - $79.99

5 000$

- from a bank account - commission for transfer - $ 4.99

- payment from a debit card - $54.99

- credit card payment - $129.99

RIA:

- transfer amount - $1000

- when transferring from a bank account (maximum transfer amount is $1900) - $13

- when transferring from a credit card (maximum transfer amount is $1900) - $46

- when transferring from a debit card (maximum transfer amount is $1900) - $35

- cash payment (maximum transfer amount - $ 495) - $ 7

$3,000 - not implemented

$5,000 - not implemented

As you can see, the RIA system rates are the most favorable when paying with a card, but you need to remember the existing limits on transfers (up to $1900), while Western Union has a maximum transfer amount of 5 thousand US dollars, and MoneyGram has 10 thousand.

SWIFT transfer

However, if the amount of your money transfer exceeds 1-2 thousand dollars, you should think about another proven method - SWIFT transfer. The SWIFT system is an international banking payment system. To make a transfer using it, the sender and recipient need to open bank accounts in the transfer currency (in our case, US dollars). The recipient in Ukraine must provide the sender in the United States with their bank details for such a transfer: name of the recipient bank, SWIFT code of the recipient bank; beneficiary's account number and beneficiary's name.

The cost of the transfer service via the SWIFT system is individual in each bank, but on average it is a fixed amount, regardless of the amount of sending - $ 30-40. Thus, this method of transfer is beneficial when sending large amounts (from 2 thousand dollars and more), while the payment speed is slightly lower - from 2 banking days.

Transfer from card to card using special online services

The third method of transfer, which is gaining popularity, is transfer from card to card using special online services or mobile applications. From the point of view of convenience and speed, this method simply has no equal. The only requirement is that the sender and recipient have plastic cards. However, conversion to hryvnia cannot be avoided in this case.

Tariffs for transfers using online services as of January 2022

Wise (TransferWise)

- $500 - transfer fee - $9.66, 13,557.90 UAH will be credited to the recipient's account.

- $1000 - $18.86 UAH 27,128.52 will be credited to the recipient's account.

- $3000 - $55.63 UAH 81,411.83 will be credited to the recipient's account.

- $5000 - $92.39 UAH 135,695.42 will be credited to the recipient's account.

PAYSEND

- $500 - transfer fee - $2, 13,504.70 UAH will be credited to the recipient's account.

- $1,000 - transfer fee - $2, 27,063.63 UAH will be credited to the recipient's account.

- $1,000 - transfer fee - $2, 81,299.35 UAH will be credited to the recipient's account.

- $5,000 - transfer fee - $2, 135,535.08 UAH will be credited to the recipient's account.

As you can see, when transferring small amounts (up to 1 thousand US dollars), this method is comparable in terms of tariffs with the international money transfer systems described above. Its advantage is that in order to receive a transfer, the recipient does not have to go to the bank, as well as in the declared transfer speed (instantly).

If, for one reason or another, the above methods of transferring money from the USA to Ukraine do not suit you, there are others.

Netting

One of them is netting. This is an option when money does not physically cross borders. A sender from the USA finds a person in Ukraine with the same needs: send a transfer from the USA. In this case, it is possible to offset payments at an agreed price (world practice - at least 2% of the amount). However, in addition to possible risks in this case, it is necessary to take into account the complexity of finding a set-off option with the same amounts, and most importantly, the region where the parties to the set-off are located.

Transfer using e-wallets

Another fairly popular way is transfer using e-wallets. The most famous among them are PayPal, Skrill and Payoneer. Of course, in this case, both parties to the transfer need to register in the selected system and open an electronic account in it, then the sender can replenish his account and send electronic money to the recipient's account.

At the same time, the Skrill service provides the most liberal conditions, while its competitors have certain restrictions. So, PayPal does not allow you to withdraw money to accounts opened in Ukrainian banks, and Payoneer requires you to order a card from the United States. Opening a Skrill account will be free, replenishment will cost 0-3% depending on the chosen method, sending funds will cost 1.45% (but not less than $0.57), and withdrawing funds from the wallet will cost 6.22 $ when withdrawing via SWIFT or - 7-7.5% when withdrawing to a card. As you can see, this method of translation cannot be called cheap. In the most economical option (replenishment of the sender's account and withdrawal of funds from the recipient's account through the SWIFT system), the entire operation will cost 1.45% of the transfer amount plus $6.22, which, if transferred in the amount of $1,000, will entail expenses in the amount of 20, $72.

Money transfer using courier and postal services

Well, and another transfer method studied by Prostobank.ua, money transfer using courier and postal services. For example, one of these companies, MEEST, created by the Ukrainian diaspora in Canada, offers money transfers from 5 US states to Ukraine. The highlight of the offer is that you can receive a transfer both in Ukrainian banks (without opening an account) and with a messenger in your hands - in this case, the confidentiality of the transfer is the highest, because banks are not involved in the transfer process at all.

Thus, the rates for transfers using the MEEST company as of 01/11/2022 are as follows:

Washington state:

$500 - commission - $15 to Aval bank, to PrivatBank - $12

1000$ - 25$ to Aval bank, to PrivaBank - 23$

more than $1,000 - 2% of the amount.

Illinois:

$500 - commission - $15 to Aval bank, to PrivatBank - $12

1000$ - 20$ to Aval bank, to PrivatBank - 2%

more than $1,000 - 2% of the amount.

State of New Jersey:

$500 - commission - $12 to Aval bank, to PrivatBank - $10

1000$ - 20$ to Aval bank, to PrivatBank - 2%

more than $1,000 - 2% of the amount.

Oregon State:

$500 - commission - $15 to Aval bank, to PrivatBank - $12

1000$ - 25$ to Aval bank, to PrivatBank - 23$

more than $1,000 - 2% of the amount.

Ohio State:

$500 - commission - $15 to Aval bank, to PrivatBank - $12

1000$ - 25$ to Aval bank, to PrivatBank - 23$

more than $1,000 - 2% of the amount.

If the transfer must be delivered by a messenger, $ 15 must be added to the specified tariff if the amount of the transfer does not exceed 1.5 thousand US dollars, or 1% if the amount is more.

Finally, we note that there are other ways to transfer money from the US to a recipient in Ukraine: for example, you can purchase crypto currency and then send it to the recipient's account, or you can open a bank card in the US, replenish it and transfer it to the recipient in Ukraine for subsequent payments. In addition, as financial online services develop, their list and capabilities will also grow.