Xoom fees: What's the price of a money transfer?

Founded in 2001 and owned by PayPal since 2015, Xoom has become a popular way to send money abroad from the US. 

In this article, we’re going to show you the fees for sending money with Xoom.

Xoom could work out cheaper than using some other services. But it’s worth checking out how much it’s really going to cost you, before you sign up and hit send – you might save more with some Xoom alternatives like Wise.

---

---

How much does Xoom really cost?

One of the reasons for the popularity of international transfer providers like Xoom is that banks tend to be inefficient and expensive when it comes to transferring money abroad. “Surely it’ll be cheaper to use a specialist service than sending an international wire,” you might think.

But is Xoom really cheaper than a wire transfer?

The answer is that their fees depend on a range of factors, meaning that you either end up with a better deal – but you may end up paying more. These factors include:

• The payment method — bank transfer, debit card or credit card
• The amount of money you want to transfer and 
• How the money should be received
• Which currency you’re sending to.

For low transfer amounts, from $10-100 for example, you might find that these methods all cost the same. But for higher amounts, like US$1,000 to Indian rupees, it’s often cheaper to pay via your bank account and more expensive to use a credit/debit card. Sometimes, in fact, there’s no sending fee at all for a bank transfer, while the credit or debit card fees can shoot up quite steeply.

Let’s have a look at this table about Xoom’s international fees:

Xoom international transfer	Feeⁱ
Bank account transaction fee	$0 - $10, depending on currency and transfer amount
PayPal balance transaction fee	$0 - $10, depending on currency and transfer amount
Credit or debit card transaction fee	Minimum of $1.99, but can rise substantially depending on currency and transfer amount
Exchange rate markup	Somewhere between 4-6% - best to check it against an online currency converter

ⁱ The figures in this table are indicative only — they might change, and could vary depending on which country you’re sending to.

What are Xoom’s rates? 

As you’ll see from the table, Xoom doesn’t charge a specific conversion fee.

In fact they stop short of actually calling it a fee. It’s always worth reading the smallprint when you transfer money. On Xoom’s fees and exchange rate calculator, they have a note:

In addition to the transaction fee, Xoom also makes money when it changes your send currency into a different currency.¹

In essence, on top of the fee they charge, Xoom squarely notes that they’re making money on the exchange rates they give you. Why? Because almost everyone in the industry does it. In fact, on average, banks can mark up the exchange rate by somewhere between 4-6%.

It’s rare for transfer providers to actually offer the mid-market rate — what Xoom calls the wholesale or interbank rate. However, as you’ll see further on, this is where Wise is an exception. 

At Wise, we never hide extra fees and charges in the exchange rate. We just use the mid-market exchange rate. That means fair, cheap money transfers every time.

Wise vs Xoom: A comparison

Let’s get specific with an international bank transfer example. Say you want to send US$1,000 from a bank account in America and end up with Indian rupees in a bank account in India. 

For convenience and speed, you want to pay Xoom via a bank transfer:

As you can see, you may end up saving a lot of money with Wise. It is on average 6x cheaper than old-school banks when you send, spend, or withdraw money around the world — and it takes just minutes to open a free account.

Get a free Wise account today

Xoom limits

How much can you send with Xoom?

It varies a bit depending on the precise details. Your own transaction history can play a part in this, for example, and whether you’re sending money to be deposited into a bank account, or received in person. In addition, some cash pickup options have limits.

But here are the limits in a general case, if you’re a new user, and use a bank transfer:

Xoom international transfer	Limit²
Minimum amount	$10
Within 24 hours	$2,999
Within 30 days	$6,000
Within 180 days	$9,999

Bottom line

So, then. What’s the price of a money transfer with Xoom?

Well, if you use Xoom, it varies quite a bit, depending on a range of factors. Upfront fees aren’t all you’ll need to factor in to get those costs figured out. To make sure you’re getting a fair deal, you’re going to want to grab your calculator to factor in that exchange rate, especially.

Always beware of offers of zero transaction fee or “great exchange rates.” There’s almost always a cost. Unless you’re being offered the real mid-market exchange rate, you’re not getting as good a deal as you might think.

You can find the mid-market rate, which is constantly changing, on websites like XE or Google. Wise uses Reuters as an independent exchange rate provider to calculate their exchange rates, which, as you’ll see in the table examples above, usually amount to nearly the same or even better than you’ll find on Google.

Learn more about Wise

---

Sources:

1. Xoom - Send Money
2. Xoom - How much money I can send?

All sources checked on 16 March 2022