# Sending money home safely

Source: https://www.qaravan.org/resources/money/sending-money-home/

A company that sends money abroad generally must show you the cost, the exchange rate and what the recipient gets before you pay. You can generally cancel within 30 minutes and complain about an error. Since January 1, 2026, a federal 1 percent tax applies to transfers paid in cash.

QARAVAN does not give financial advice. If there is a dispute, go to the company first, then to the federal CFPB.

## Start here

- Compare before you pay: the company generally shows the total cost with taxes and fees, the exchange rate and what the recipient gets.
- The 1 percent tax applies when you pay in cash, by money order or cashier's check, but not from a bank account or a U.S.-issued card.
- You can generally cancel a transfer within 30 minutes and report a problem within 180 days. If the company does not fix it, complain to the Consumer Financial Protection Bureau (CFPB), the federal consumer agency.

## Before you send

1. Compare companies Before you pay, you generally see the total cost with taxes and fees, the exchange rate and the amount the recipient should get, so you can compare companies. The recipient's bank may charge its own fee, and their country may tax it.
2. Check the tax and the way of paying Since January 1, 2026, a 1 percent tax applies to transfers from the United States to other countries when you pay the company with cash, a money order, a cashier's check or a similar paper instrument. The sender owes the tax, and the company collects it. There is no tax when the money comes from an account at a bank or similar institution covered by U.S. federal law, or when you pay with a U.S.-issued debit or credit card (26 U.S.C. 4475(d)).
3. Check the recipient's details The name and the phone or account number must match the recipient's details. If the recipient could not get the money because of a mismatch, the CFPB explains what to do.
4. Keep the receipt After you pay you generally get a receipt with the total cost (the TOTAL line), the exchange rate, the amount for the recipient (TOTAL TO RECIPIENT), when the money will be available, what to do about an error, how to cancel, and how to contact the CFPB and the state agency that regulates the company.
5. Do not pay on demand to strangers U.S. Citizenship and Immigration Services (USCIS) does not accept payment through Western Union, MoneyGram, PayPal, Venmo or gift cards. If a call or message urges you to send money fast, stop and check on the official website.
6. If transfers to your country don't go through Sanctions limit transfers to some countries in the region: for example, Western Union has not served Russia or Belarus since March 24, 2022. Don't hand money to go-betweens or “exchangers” from chats and ads who promise to get around the limits: you can lose the money with no way to get it back.

The 1 percent tax and ways of paying

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## If a transfer did not arrive or went wrong

1. Contact the company right away In some cases you can get a refund or have the transfer resent at no extra cost. Have your name, address, phone number, account or transaction number, a clear account of what happened and what you want, and documents or screenshots ready. Note who you spoke with and when.
2. Cancel the transfer if you are in time Generally, you can cancel an international transfer within 30 minutes after it is sent, unless the recipient has already picked up the money or it has been deposited into their account. Canceling is free.
3. Report the problem within 180 days You can report a problem to the company up to 180 days from the date the funds were available (shown on your receipt). The company must look into it within 90 days and tell you the result; in some cases you get a refund or the transfer is resent.
4. File a complaint with the CFPB If the company did not solve the problem, complain to the CFPB: it forwards the complaint to the company and works to get you an answer, generally within 15 days.
5. Protect your personal data Never post your personal data on social media or review sites, and avoid angry or threatening language with the company.

## Where to turn

- Consumer Financial Protection Bureau: money transfers Any status Free The federal agency that regulates money transfer companies. It explains how to cancel, what you must be shown before and after you pay, and how to complain. File a complaint online: [consumerfinance.gov/complaint](https://consumerfinance.gov/complaint). [consumerfinance.gov](https://www.consumerfinance.gov/consumer-tools/sending-money/)
- IRS: remittance transfer tax Any status Free The IRS announcement on the 1 percent tax on transfers abroad. The rules are still proposed regulations and may change. [irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill)
- NYC Financial Empowerment Centers Any status NYC residents Free A free City financial counselor can help you choose how to send money, make a budget and open an affordable, safe account. You must be 18 or older and live or work in New York City; income and status do not matter. Book online: [a866-dcwpwb.nyc.gov/talkmoney/book-appointment](https://a866-dcwpwb.nyc.gov/talkmoney/book-appointment). [access.nyc.gov](https://access.nyc.gov/programs/nyc-financial-empowerment-centers/)

## Glossary: definitions of special terms and abbreviations

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This is general information, not legal advice: QARAVAN has no lawyers. QARAVAN does not help anyone enter the US and cannot arrange visas, invitations, sponsorship or evacuation. For your own case, talk to a licensed immigration attorney or a representative accredited by the U.S. Department of Justice.

[All pages: Money, food, benefits and taxes](https://www.qaravan.org/resources/money/)

**Sources, checked November 2026**

- [access.nyc.gov/programs/nyc-financial-empowerment-centers](https://access.nyc.gov/programs/nyc-financial-empowerment-centers/)
- [consumerfinance.gov/consumer-tools/sending-money](https://www.consumerfinance.gov/consumer-tools/sending-money/)
- [irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-th…](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill)
- [consumerfinance.gov/complaint](https://www.consumerfinance.gov/complaint/)