Guide to: Sending Money Back to Brazil
For many Brazilians living abroad—especially in the United States—sending money home is an essential part of supporting family, investing in property, or covering expenses in Brazil. Whether you are working in Florida, New York, or anywhere else, remittances are a lifeline for loved ones back home.
But if you’ve ever tried to transfer money internationally, you know it can be confusing. Exchange rates fluctuate daily, fees vary widely, and transfer times aren’t always consistent. Choosing the right method can save you significant amounts of money and stress.
In this guide, we’ll break down the best and most reliable ways to send money back to Brazil, explain the factors that affect cost and speed, and give you practical tips for maximizing your transfers.
Why Brazilians Abroad Send Money Home
Every year, billions of dollars flow into Brazil from family members working overseas. The U.S. is one of the top sources of these remittances, thanks to the large Brazilian community. Reasons people send money include:
Supporting family members with living expenses
Paying tuition for children or relatives
Covering healthcare and emergencies
Purchasing property or making investments in Brazil
Contributing to savings and retirement accounts
Because these transfers are frequent, even small differences in exchange rates and fees add up over time. That’s why understanding your options is crucial.
Key Factors to Consider Before Sending Money
When choosing how to send money, compare the following factors carefully:
1. Exchange Rates
The exchange rate determines how many Brazilian reais (BRL) your recipient gets for each U.S. dollar (USD). Even a small difference—say, R$5.10 vs. R$5.20 per USD—can make a noticeable impact on large transfers.
2. Transfer Fees
Some providers charge flat fees, while others take a percentage of the transaction. Watch out for “hidden fees” embedded in poor exchange rates.
3. Transfer Speed
Depending on the method, money can arrive in minutes, hours, or several business days. Emergencies often require faster (and sometimes more expensive) transfers.
4. Convenience
Consider whether the recipient has a bank account in Brazil, needs cash pickup, or prefers mobile wallet options.
5. Safety and Reliability
Always use trusted and regulated providers. Scams and fraudulent operators exist, especially when sending money abroad.
Popular Ways to Send Money to Brazil
1. Online Money Transfer Services
Companies like Wise (formerly TransferWise), Remitly, Xoom (a PayPal service), and WorldRemit are among the most popular options for Brazilians.
Pros: Transparent fees, competitive exchange rates, fast transfers, easy to use via app or website.
Cons: Some services limit transfer amounts; fees can rise for instant delivery.
These platforms usually deposit directly into a Brazilian bank account (Banco do Brasil, Itaú, Bradesco, Caixa, etc.), making it convenient for family members.
2. Bank Wire Transfers
Traditional banks in the U.S. (like Chase, Wells Fargo, Bank of America) allow you to send international wires.
Pros: Secure, established institutions, direct account-to-account transfers.
Cons: Higher fees ($30–$50 per transfer), less favorable exchange rates, slower processing.
Bank wires are best for larger transfers where reliability matters more than cost.
3. Cash Pickup Services
Companies such as Western Union and MoneyGram let recipients pick up money in cash at thousands of locations across Brazil.
Pros: Fast delivery, especially for recipients without bank accounts.
Cons: Higher fees, less favorable exchange rates, and recipients must travel to pickup locations.
This is ideal for urgent situations or when your family doesn’t have easy banking access.
4. Mobile Wallets and Digital Apps
Apps like PayPal, PicPay, and even cryptocurrency solutions are emerging as alternatives.
Pros: Instant transfer between users on the same platform.
Cons: Limited acceptance in Brazil, potential withdrawal fees, and fluctuating crypto values.
For tech-savvy families, these may be practical, but they’re still less common for everyday remittances.
5. Specialized Brazilian Exchange Companies
Some Brazilian-focused remittance companies operate both in the U.S. and Brazil, often offering competitive rates tailored to the community.
Pros: Local expertise, Portuguese-speaking customer service, often better rates than banks.
Cons: May require setting up accounts or visiting offices.
These can be a good choice if you prefer a community-oriented service with Portuguese support.
Step-by-Step: How to Send Money Safely and Efficiently
Compare providers: Use online comparison tools to check fees and rates.
Register an account: Most services require identity verification (passport, U.S. ID, proof of address).
Enter recipient details: Typically includes full name, CPF (Brazilian taxpayer number), and bank account info.
Choose transfer speed: Standard vs. instant delivery (fees differ).
Confirm and pay: Pay with your U.S. bank account, debit card, or credit card.
Track the transfer: Most services provide real-time updates.
Tips for Maximizing Your Money Transfers
Send larger, less frequent transfers: This reduces cumulative fees.
Use bank account transfers over credit cards: Credit cards often add cash-advance fees.
Check exchange rates before sending: Timing your transfer around rate fluctuations can save money.
Beware of scams: Never send money through unofficial channels or to unknown individuals.
Keep receipts and tracking numbers: Important for disputes or confirmation.
Common Mistakes to Avoid
Assuming your U.S. bank offers the best deal—usually, it doesn’t.
Forgetting about Brazil’s IOF tax (a financial transaction tax, typically 0.38% for remittances).
Not double-checking the recipient’s bank account details—errors can delay or cancel transfers.
Using credit cards unnecessarily, which adds high fees.
Legal and Tax Considerations
Brazilian authorities regulate incoming foreign transfers, and depending on the amount, your family may need to provide documentation (such as proof of income or purpose of transfer).
In the U.S., sending very large amounts (usually over $10,000) may trigger reporting requirements. For routine family remittances, this isn’t typically an issue, but it’s wise to keep clear records.
Conclusion
Sending money back to Brazil doesn’t have to be complicated or costly. With today’s digital tools, you can transfer funds quickly, securely, and at a fraction of the cost of traditional methods.
For everyday family support, online services like Wise, Remitly, and Xoom are excellent. For larger investments, bank transfers may still make sense. And for emergencies, cash pickup services remain a lifesaver.
The most important step is to compare your options, understand the fees, and choose the method that works best for your family’s needs. With a little planning, you’ll maximize every dollar you send and ensure your loved ones in Brazil receive funds safely and on time.
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