Sending Money to the USA? Don't just rely on the bank; there is a better way.

What's the best way to send money to the States?

Who sends money to the US and Why?

Sooner or later, most of us in the UK will need to deal with the world's biggest currency: the mighty US dollar. Whether you call it the "greenback" or the "buck," it’s the default world currency.  Old-school traders in London and New York call the GBP/USD exchange rate "Cable," a throwback to the days when the first currency exchange live prices bounced back and forth under the Atlantic Ocean through a physical telegraph cable.

Fast forward to today, and you might be paying a supplier in San Francisco, buying your dream property in Florida, or sending a gift to family in Texas. Whatever your reason, you want three simple things: a great exchange rate and for your money to arrive safely and on time.

The obvious first step? Your high street bank. But this is often the first, and most expensive, mistake you can make.

Sending Money to the USA can sometimes be tricky

Sending money to the USA isn't like a simple bank transfer down the road. It’s more like international travel, filled with strange rules, hidden fees, and unexpected delays.

Different Terminology:  What are US Routing and ABA Numbers?

Here in the UK, we're used to IBANs (International Bank Account Numbers). They're 24 digits long and include all the information banks need, such as account number, country code, bank etc. The US, however, does things its own way. They use a nine-digit ABA Routing Number. Get this wrong, and your money is going nowhere fast. Their internal payment systems, ACH and Fedwire, are built for domestic transfers only, meaning your UK bank can't use them directly if you are sending USD.

When buying a property, it's common to send the USD funds to a title company, and they do not accept ACH payments. https://www.fsa.usda.gov/Internet/FSA_Notice/flp_800.pdf

This is where the global SWIFT network comes in. Think of it as a secure messaging system for banks. But here's the catch: your bank in Oxford or Oldham might not have a direct line to a small credit union in Ohio. So, your money gets bounced between one or more "intermediary" banks along the way. And yes, you guessed it – each one skims a fee for their trouble. It's a bit like your package arriving with half the contents missing, and no one telling you why.

The Hidden Tripwires: What Can Really Go Wrong?

On top of the confusing structure, there are a few uniquely American hurdles that can stop or delay your payment and cause you to spend more precious time trying to get a resolution.

1. Different payment types: Will have varying restrictions, in terms of the amount that can be sent in a single transaction, payment cut-off times, and whether the payment can be traced or recalled if necessary.

2. The PATRIOT Act: This bit of US law means every bank involved in your transfer is legally required to scrutinise it for anything suspicious. While it's there for good reason, it can mean your perfectly normal payment gets flagged for a manual review, leaving you in limbo for days.

3. The Wrong Payment Reference: What you type in the payment reference box matters. A lot. Automated systems scan for trigger words. Mention a sanctioned country (even as part of a company name), a person's name that flags a watchlist, or a product from a sensitive region, and your payment will be frozen. Keep it simple: "Invoice 12345" or "Birthday Gift" is all you need.

4. Beating the Clock: Because the US is five to eight hours behind us, timing is everything. Miss your UK bank's 4 PM cut-off time for sending out a payment, and you've already lost a day. It’s a transatlantic race against time that many people lose without even knowing they're in it.

5. Requests For Information: When sending amounts in excess of 10,000 USD all banks will be under a regulatory duty to confirm the reason for the transfer and be able to demonstrate it has done the necessary due diligence to ensure the money has been acquired legitimately. Sometimes documentary evidence may be required before the transfer is processed. These requirements can be frustrating for the sender and can add delays in the delivery of a transfer, especially if you cannot speak directly to someone who can help resolve the situation.

   
   

Don’t be alarmed in this situation, as it's a usual practice to get an RFI, and it can help protect the sender as well. However, understanding what might be needed and preparing in advance will help ensure that delays are avoided.

There's a Better Way. Let an Expert Guide You.

Banks often reserve their best rates and services for their giant corporate clients. For the rest of us, it’s a story of poor rates and frustrating service.

That's where a dedicated currency specialist like Pathfinder FX comes in. We don't do mortgages or direct debits; we live and breathe currency. Think of us as your personal guide through the money transfer network.

• You Get the Real Exchange Rate: We operate on tiny margins, not the chunky markups the banks add. That means more dollars in your recipient's account for every pound you send.

• We can help you avoid the Market Swings: Worried the exchange rate might crash just before you need to make a big payment? We can help you lock in a rate for up to two years with a forward contract. It gives you peace of mind and protects you from any nasty surprises.

• Guidance from Real People: We’ll personally check that you have the right ABA routing numbers and advise on the perfect reference to avoid those compliance headaches. We know the cut-off times inside out to make sure your transfer flies through without delay. We can even double-check with whoever is receiving the funds to ensure the details are both correct and not fraudulent.

• Your Money is Always Safe: When you're sending your hard-earned cash, security is everything. Pathfinder FX only uses currency service providers authorised and regulated by the Financial Conduct Authority (FCA). This means your funds are always held in protected, safeguarded accounts.

  
  

So, while a fintech app might be fine for sending £50 to a friend, for the transfers that really matter – buying property, paying crucial invoices, or moving your life savings – you need an expert in your corner.

Don't let the banks dictate the terms. Let's have a chat and find a smarter way to send your money to the USA.

Want to learn more about how we can help send funds to the USA?

Give us a call. We’ll have a quick chat to understand what you need and open your account in minutes. Get a no-obligation quote from Pathfinder FX today and see exactly how much you could save.

desk@pathfinder-fx.com

+44 (0) 1743 290955

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Overview: Payments to the USA Technical Detail

Payment Type	Swift (Priority)	Local (Regular)
Cut off time (UK Time)	4:30 pm For North America OKYC clients only, the Swift cut-off time is 8:45pm	8:45 pm
Delivery time frame	0 days	0 days
Maximum payment size	No limit	$1,000,000 ($1m)
Payment Scheme	Swift - USD to any country Within the US, the Swift payment will use Fedwire or CHIPS, depending on the routing code used.	FedACH
Destination countries	Any (excluding sanctioned countries)	USA
Traces	Yes	No
Recalls	Yes	No
Ultimate payer displayed?	Yes	No

Required Details for USA Payments

Local (Regular) Payment

* Please note that non-ASCII characters will be transformed to ASCII equivalent or removed on a best endeavours basis in order to comply with the restrictions of the domestic payment scheme.

Swift (Priority) Payment

Field	Individual	Company	Permitted Data	Notes
Beneficiary Entity Type	✓	✓	‘individual’ or ‘company’ only
Beneficiary First Name	✓	✕	1-255 characters*
Beneficiary Last Name	✓	✕	1-255 characters*
Beneficiary Company Name	✕	✓	1-255 characters*
Beneficiary Address	✓	✓	1-255 characters*
Beneficiary City	✓	✓	1-255 characters*
Beneficiary Postcode	✓	✓	1-12 characters*	Only required when sending payments to Canada, Mexico and the USA.
Beneficiary State or Province	✓	✓	1-255 characters*	Only required when sending payments to Canada, Mexico and the USA.
Beneficiary Country	✓	✓	2 letter ISO country code
IBAN	✓	✓	15-34 alphanumeric characters; spaces permitted	IBAN must be used when sending payments to all IBAN countries. When sending to non-IBAN countries, account number must be used.
Account Number	✓	✓	1-17 digits	When sending payments to non-IBAN countries, account number must be used. IBAN must be used when sending to all IBAN countries.
CLABE	✓	✓	18 digits	CLABE must be used instead of account number or IBAN when sending payments in any currency to Mexico. CLABE is the banking standard for the numbering of bank accounts in Mexico (equivalent to the Account Number in other jurisdictions).
ABA	✓	✓	9 digits	American banks are identified by a 9-digit ABA number, also known as ‘Routing Number’. The ABA should be valid for FedWIRE payments. Some ABA values are only valid for FedACH payments. Payments to FedACH-only ABAs will fail. The ABA is required for all USD payments to the USA.
BIC Swift	✓	✓	Valid ISO 9362 Swift BIC code; 8 or 11 alphanumeric characters	BIC Swift should be used for USD payments to the USA for payments on the CHIPS payment scheme. The BIC Swift should also be used for USD payments to any other supported country outside the USA.
Payment Currency	✓	✓	3 letter ISO currency code
Payment Amount	✓	✓	Numeric amount
Payment Reference	✓	✓	1-255 alphanumeric characters	Anything over 132 characters will be truncated.
Payment Reason	✓	✓	1-255 alphanumeric characters	On the MT103, this is appended after payment reference if there is space remaining.
Payer Entity Type	✓	✓	‘individual’ or ‘company’ only
Payer First Name	✓	✕	1-255 characters*	For payer name on the MT103, payer first name and payer last name are joined together and truncated to 35 characters.
Payer Last Name	✓	✕	1-255 characters*	For payer name on the MT103, payer first name and payer last name are joined together and truncated to 35 characters.
Payer Company Name	✕	✓	1-255 characters*
Payer Address	✓	✓	1-255 characters*
Payer City	✓	✓	1-255 characters*
Payer Postcode	✓	✓	1-12 characters*	Only required when sending payments to Canada, Mexico and the USA.
Payer State or Province	✓	✓	1-255 characters*	Only required when sending payments to Canada, Mexico and the USA.
Payer Country	✓	✓	2 letter ISO country code
Payer Date of Birth	✓	✕	ISO 8601 format (YYYY-MM-DD).
Payer Identification Type	✕	✓	‘Incorporation number’ only
Payer Identification Value	✕	✓	1-255 characters*

* Please note that non-supported characters will be transformed to EBCDIC equivalent or removed on a best-efforts basis to comply with the restrictions of the Swift payment network. The permitted characters on the Swift network are letters, numbers, spaces, and the following symbols :/ – ? : ( ) . , ‘ +