Living or Working Overseas Series: Part 5 – Charge to Your US Cards, Transfer Foreign Currency to Pay Your Bills

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This series of posts is written by the Wandering US Expat, who’s lived in Australia and Panama.  And applied for cards from there!

Don’t let living abroad stop you from getting miles and points bonuses from credit cards!

It’s no secret that US banks lead the world in promotional point bonuses for new customers.  They give away lots of points to get a new customer in the hopes that you’ll remain, and spend, with them for years.  Lots of non-US folks wish they could get access to the same deals!

But many US citizens and ex-permanent residents, known as expats, often wonder whether they can still get credit cards if they leave or have already left the US.  Perhaps they’ve relocated for a job or have gone for an extended trip abroad.  Some expats have left permanently to start a new life.

 Transfer Foreign Currency To Pay Your Bills

Bank Transfers, PayPal, and Peer-to-Peer Transfers Are 3 Ways to Send Money to the US to Pay Your Credit Cards

Are you or someone you know in this category?

Figures are hard to determine because the US does not track expats who are traveling or living abroad.  But a recent report estimated the number to be living overseas at about 2 to 7 million. There are millions more who leave, or “visit” outside the US for months at a time all year round.

This series will help folks living outside the US have Big Travel with Small Money!

“Living or Working Overseas” Series Index

How to Pay the Bills

Link:   PayPal

Link:   CurrencyFair

Link:   TransferWise

For those with enough money in their US bank account, or retirement income, it may not be a problem to pay your credit card bills.

But for folks who don’t, there are other options to fund your US bank account with overseas currency.


PayPal is well-known as a processor for ebay payments.  But it also offers person-to-person transfers.  But don’t try sending yourself money if you have 2 PayPal accounts in 2 different countries!

PayPal has safeguards in place to prevent people from having multiple accounts in more than 1 country.  I wouldn’t recommend trying to get around this because they may close your accounts.  The chance of PayPal freezing your money isn’t worth the risk.

 Transfer Foreign Currency To Pay Your Bills

Do NOT Send Money to Yourself From Multiple PayPal Accounts

However, transferring your money to another person with a PayPal account is relatively easy.  Log into your PayPal account and enter the email of the person you want to transfer money to.

Your PayPal account is linked to your bank account, so if you don’t have enough funds for the transfer, then PayPal charges your credit card plus ~3% in fees just like a credit card purchase.  So sending $1,000 to your friend in the US could cost you ~$30 in fees.

 Transfer Foreign Currency To Pay Your Bills

Sending Money to a Friend in the US Is Easy but Without Enough PayPal Funds, PayPal Charges Your Credit Card Plus ~3% in Fees

Your friend would then withdraw the money you’ve sent to their own local US bank account and use it to pay your credit card bill.

Bank-to-Bank Transfer

You could transfer money between banks to pay your credit card bills.  This is also known as a wire transfer.  You send money from your overseas bank account to a trusted friend’s account in the US.

However, banks charge high fees for this service.

Banks charge anywhere from $15 to $60 to both SEND and RECEIVE a wire transfer.  That can add up quickly.

For example, if your bank charges $30 to send a payment and your friend’s bank charges $30 to receive the payment, your out-of-pocket cost could easily reach $60.  It’s usually not worth transferring less than $500 when you subtract all the fees for every transfer.

 Transfer Foreign Currency To Pay Your Bills

While Living Abroad, Paying Your US Credit Card Bills by Bank Transfer Will Be Expensive

And if your money is in a currency other than US dollars, the bank is likely to add on a processing fee along with an unfavorable exchange rate.

Transferring enough foreign money to send someone $1,000 (to pay a US credit card bill) can cost you an additional 10% or more when you add up fees and the bank’s much lower exchange rates.  Your total expense for international currency transfers can get expensive!

Peer-to-Peer Transfers

There are less expensive alternatives to PayPal and bank transfers.

Peer-to-peer transfers are when 1 person sends another money but instead of going through the traditional bank method, a number of smaller companies compete to beat the banks’ rates.

One peer-to-peer transfer service is CurrencyFair.

CurrencyFair began offering peer-to-peer exchange services ~4 years ago.  Readers tell me they’ve had a good experience with them.

CurrencyFair will exchange money in many currencies.  Some of these include the

  • Australian Dollar
  • Canadian Dollar
  • Euro
  • Hong Kong Dollar
  • Pound Sterling
  • Swedish Krona
  • Swiss Franc
  • US Dollar

You send money to the US through CurrencyFair via internet bank transfers.  You can NOT use a credit card.

CurrencyFair charges ~$4 for a one-time exchange, no matter how small or large the amount.  They also give VERY competitive exchange rates.

 Transfer Foreign Currency To Pay Your Bills

CurrencyFair Is a Peer-to-Peer Transfer Service That Can Help You Save Money Compared to Bank Transfers

For example, if the current rate is 100 Australian dollars = $92, a bank will give you $89.  But CurrencyFair will give you ~$91.50.  That’s nearly market rate!

Transfers take ~2 to ~5 days depending on the banks.

There are other peer-to-peer transfer services such as TransferWise.  This company was built by the makers of Skype.  I haven’t heard as much about this company, but if you’ve used TransferWise please tell me about your experience in the comments!

Bottom Line

Peer-to-peer transfers can save you money compared to bank transfers and PayPal.  This could be the best way to send foreign money from overseas to a US bank account to pay your US credit card bills.

And when you’re living in a foreign country you may want to rent a car.  So in the next post of this series I’ll give you tips for choosing car rental insurance.

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Editorial Disclaimer: Neither the responses below nor the editorial content on this page are provided or commissioned by the bank advertisers, and have not been reviewed, approved or otherwise endorsed by the bank advertisers. Opinions expressed here are the author’s alone, not those of the bank advertisers. It is not the bank advertisers’ responsibility to ensure all posts and/or questions are answered.

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14 responses to “Living or Working Overseas Series: Part 5 – Charge to Your US Cards, Transfer Foreign Currency to Pay Your Bills

  1. Thanks for the post! Can I use CurrencyFair to transfer money to my own US bank account, or does it need to be someone else’s? Can it be my wife? What if both of our names are on the accounts?

    Thanks for your help!

  2. XE Trade (from the people who do the currency converter at is another service to do currency transfers. It costs if you want to do a wire, but offers an ECH transaction between many, many more currencies that is free. But it takes 5-10 business days, as they apparently take your source currency and attempt to purchase the destination currency at its best rate. Still, if you’re patient and a good planner, it’s a great way to transfer money for free.

  3. As a U.S. citizen living in Germany, I have used a different method to take money back to the U.S. for the 6 months a year that I generally spend there. As a member of the ADAC (German version of the AAA), I can buy AMEX traveler’s checks (yes, they still exist, but aren’t widely used) at a very good rate. Up to 2,500 Euros can be ordered every 14 days, and they are hand delivered by courier to me at home with no delivery charge or commission charged. I check the daily rate (, and then stockpile the checks (slightly less than $10,000 worth in total to avoid having problems when going through Customs). When I get to the U.S., I simply deposit all the TCs to my U.S. bank account.

    I’ll now look into Currency Fair as it seems like another good possibility, and a lot easier than having to sign each of those traveler’s checks … twice. Google turns up very few problems with CF and many positive comments.

    @Chad — according to the Google comments, CF is especially meant for those who have accounts in the sending and receiving countries (both accounts in the same name!)

  4. T. Kate Harris

    I have never had the opportunity to visit an airport lounge and I would be thrilled and thankful to win such a generous gift.

  5. I’d love win theAmerican Airline Club membership, because only try to book direct non-stop flight; but there are always delays that are not posted in advanced. Thanks for the opportunity!

  6. i sent up to 12000 euros so about 16000 USD to the us for 12 Euros from germany. No charge on the US side. Banker buyer/seller rate to exchange Euro to USD
    3 bank days to see the direct deposit….

  7. Wandering US Expat

    @chas – You can transfer to your own US account also, the name doesn’t matter. Essentially you are paying anyone you want anywhere.

  8. Mailing cash to your bank is the cheapest way to go.

  9. Pingback: Living or Working Overseas Series: Part 3 – Establish or Re-establish Credit While Overseas | Million Mile Secrets

  10. I use to transfer GBP to USD between bank accounts that I own. They charge a fixed $20 per transfer but the rates are so much better than anywhere else that you still come out on top. I tend to make larger transfers of $10,000 or so each time.

  11. I am usually making transfers from USD to EUR account and I am using Paysera services. I am usually happy with their exchange rate and they do not have a limit for the maximum amount of transfer. Before starting with transfers, I had to open an account with them and every time I am depositing this account through a bank wire. There is a small currency conversion rate and the fee for transfers in EUR is 0.20 Eur.

  12. Americans with USA bank accounts who move abroad to work are finding that when the bank identifies them as an expat, it will block wire transfers of currency from the new country of residence into the USA account
    This makes it impossible for the ‘expat’ to pay credit cards, property taxes of home owned in the USA, or conduct ordinary expenditures related to USA financial matters.
    It makes it impossible for an American temporarily working abroad to continue contributions to IRAs, annuities, other retirement plans, while they ae employed abroad.
    Any advice??

  13. Abhishek Sengupta

    I have a work around to this problem. I’ve been living in Paris for a couple years. I have a Charles Schwab Brokerage/High Yield checking account combo (free to open and maintain). I found out that I can do a free SEPA transfer in EUR to Schwab’s account in Citibank Frankfurt and then Schwab will simply put the money after conversion to USD in my Schwab brokerage account in the U.S. Then I am free to transfer the money to my Schwab checking account to pay bills, etc.

  14. I have been using Transferwise and I am pretty satisfied. All transactions I’ve done worked well and the cost is VERY competitive. This link allows new users to do the first transfer free of charge.