How sending money internationally generally works
When you send money from USA or Canada to an African country, these are the usual steps:
- You initiate the transfer: via an app, website, or in person. You give the amount, destination country, recipient’s details (bank account, mobile wallet, or cash pickup location), and choose how to pay (bank transfer, debit/credit card, etc.).
- Currency exchange: Your dollars (USD or CAD) are converted to the recipient’s currency. There is usually a spread or markup above the mid-market / interbank rate.
- Transfer & delivery: The money is sent through one or more payment networks (banks, clearing houses, correspondent banks, mobile money networks). Depending on the method, the recipient gets the funds directly in their bank account, on a mobile money wallet, or picks up cash.
- Costs & fees: There can be multiple fees – what you pay to send, what the service charges for conversion, sometimes fees for the recipient, and any intermediary bank fees.
- Regulation & compliance: You’ll usually have to provide identity documents to comply with anti-money laundering (AML) laws. Some countries have caps or special rules on remittances.
- Speed: Delivery time depends on how you pay (card vs bank), how the recipient is paid (bank vs mobile vs cash pickup), and the country’s banking or mobile money infrastructure. Could be minutes, hours, or several days.
What to watch / compare when choosing a service
Here are the key criteria and pitfalls:
| Factor | Why it matters |
|---|---|
| Exchange rate | Often the “hidden cost” — even if fees are low, a poor rate can make the transfer expensive. |
| Transparent fees | You want to see all the costs before you send. Some services advertise low fees but build costs into the rate. |
| Payout methods | Does the recipient need a bank account? Or is mobile money more accessible? Or do they prefer cash pickup? |
| Speed | Urgent transfers cost more. If you’re not in a hurry, you might choose slower but cheaper service. |
| Regulation & security | Make sure the service is licensed / regulated. You want encryption, verification, reliable support. |
| Limits & convenience | Minimum/maximum amounts, how easy is it to use the app or website, customer service in case of issues. |