Pay Pal vs. Wire Transfer

Which one is the best way to transfer money from the UK to US? Currently, I've been transfering money from my UK account into my USA account via wire transfer. Since this usually costs me 14 pounds from my UK bank PLUS a $40 fee from my US acount, I'd really like to find a cheaper option.

How does pay pal work? I've never used ebay or pay pal before. Are the fees the same as a wire transfer? If I did transfer the money, how would the money get from the US pay pal account INTO my US bank account?? This is all so confusing!

I use www.xe.com. It had much better rates than my bank and if you use EFT transfers then it's free. The UK bank still charges me 10 pounds but that's the only fee I pay.

Thanks! Was just about to e-mail you actually. 

I use www.xe.com. It had much better rates than my bank and if you use EFT transfers then it's free. The UK bank still charges me 10 pounds but that's the only fee I pay.

I just started using XEtrade to transfer money from our UK account to accounts in Germany and Sweden. Because XE has a UK bank, I do the transfer from my Barclays account as a BACS transfer and I don't get charged for it. Just curious if your UK bank charges for BACS transfers?

I am new to all this - what is a BACS transfer?

Thanks

I am new to all this - what is a BACS transfer?

Thanks

I am new to this too, but I think that I have figured out that a BACS transfer is the same as an EFT (Electronic Funds Transfer) in that the funds are transfered electronically. It is used for direct debits and transfers between UK banks. With XE, I transfer the money using BACS, which I can do online, into their UK account and then they do they transfer to the international banks. The process is a little complicated but Barclays makes doing international transfers very expensive and everytime you do it (for us it is 2 different transfers per month) you need to fill out a very long form.

I just started using XEtrade to transfer money from our UK account to accounts in Germany and Sweden. Because XE has a UK bank, I do the transfer from my Barclays account as a BACS transfer and I don't get charged for it. Just curious if your UK bank charges for BACS transfers?

Yep they charge me 7 pounds b/c supposedly it's an international deposit. Although I'm going to look into xe having a UK bank. I would think that makes it a local transfer and not subject to fees.

Yep they charge me 7 pounds b/c supposedly it's an international deposit. Although I'm going to look into xe having a UK bank. I would think that makes it a local transfer and not subject to fees.

neeps, I am in the process of setting up an account with XE. The rep I spoke with last night said that the best way to do the transfer from the UK is BACS and they now have a UK account to make it cheaper for customers. Call them and get the info so you can use the local transfer.

Ok - so I think I understand how the UK end of the process works. But does this still incur the incoming transfer fees on the US side? I am like the original poster - our bank charges $45. That is the fee I would most like to avoid.

Ok - so I think I understand how the UK end of the process works. But does this still incur the incoming transfer fees on the US side? I am like the original poster - our bank charges $45. That is the fee I would most like to avoid.

I am not sure about this. I think that XE can do the final transfer to your US account as an EFT, but I suggest you contact them and ask. They are extremely helpful and, so far, I am finding them very efficient. It seems like a lot to get your account set up, but it only took us 2 days. They follow through with phone calls and emails, great customer service.

Great to know! Thanks - I will contact them and find out. Appreciate all the tips.

Elisabeth

Ok - so I think I understand how the UK end of the process works. But does this still incur the incoming transfer fees on the US side? I am like the original poster - our bank charges $45. That is the fee I would most like to avoid.

According to XE Trade, on the US side it is an EFT. Some banks charge a minimal fee ($1-2) but mine doesn't so this is definitely a good option for me.

According to XE Trade, on the US side it is an EFT. Some banks charge a minimal fee ($1-2) but mine doesn't so this is definitely a good option for me.

Excellent! I am checking this out with my bank post haste!