Definition
Money sent electronically from someone in the U.S. to a person or business in another country, through a bank, credit union or money transfer company.
What it means
Under the CFPB's remittance transfer rule, most consumer transfers of more than $15 to another country come with federal protections. Before you pay, the provider must disclose the exchange rate, fees, taxes and the amount the recipient will receive, and give a receipt with the date the money will arrive. You can generally cancel within 30 minutes after paying, if the money has not been picked up or deposited, and get a full refund. If something goes wrong, you have 180 days after the promised delivery date to report an error, and the provider must investigate. The total cost depends on both the fee and the exchange rate markup, so comparing the amount received is the clearest way to compare providers. A 1% federal excise tax applies to some cash-funded transfers.
Example
Sending $500 with a $5 fee at a rate 2% below the market rate costs about $5 + $10 = $15, or about 3% of the money sent.
Illustrative numbers only. Your situation will differ.