Xoom Money Transfer: Fees and Transfer Time


Xoom is part of the PayPal family of companies, and is a specialist in sending international payments.

If you’re thinking of sending money abroad with Xoom, you’ll want to know a bit about how the process works, and what it costs. This guide has you covered. We’ll also help you research your options by highlighting an alternative - Wise and the Wise multi-currency account, for low cost international payments which use the mid-market exchange rate.

Xoom money transfer fees

With Xoom you can send money to a bank account, have your recipient collect cash at an agent local to them, or in some countries, send a payment for home delivery. You can also pay bills and top up mobile phone plans. Xoom account holders can fund their overseas payments from an existing PayPal balance, a linked bank account, or a card.

The Xoom fees you pay depend on the country you’re sending money to and the currency chosen, as well as how you want to fund the payment. There are also different fees depending on how your recipient will get the money in the end. You’ll often find you pay more if you’re funding your payment with a card rather than a linked bank account - and your credit card issuer may also charge a cash advance fee for this service.

You’ll be able to see the costs for your specific transfer using the calculator tool on the Xoom website - or just read on to see an example and comparison of Xoom’s fees. It’s also worth noting that there are additional charges added in the form of an exchange rate markup - more on this in a moment.

Xoom exchange rate

When you head over to the Xoom payment calculator to model your transfer you’ll see the following note:

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

So what exactly does this mean?

Xoom will convert your payment if you’re sending money to someone overseas, and use their own exchange rate. The Xoom exchange rate is created by taking the mid-market exchange rate - the one you find on Google - and adding a markup or margin. This margin is an extra fee. It’s not at all unusual for remittance companies to mark up exchange rates like this, but it does make it tricky to see what you’re really paying for your transfer.

For a more transparent fee structure which can work out cheaper, check out Wise. All Wise transfers use the mid-market exchange rate with no markup, and charge a simple upfront fee so you can see the true cost of your payments more easily. You can send money online for convenience, and have the payment sent to your recipient’s bank account in 80+ currencies. Simple.

Other transaction fees Xoom charges

As well as the costs involved in sending money overseas which we have outlined above, Xoom also has a USD2.99 fee when you pay bills. 

Xoom sending limits

There is a limit to how much you can send with Xoom, which includes caps on payments per day, per month, and within a rolling 180 days. Your limit will also depend on the sending level you hold. 

When you first open your account you’ll have a level 1 limit - to increase your limits you can simply add additional details and documents to your profile. Level 2 accounts require you to have your Social Security Number or passport verified, while level 3 account holders will need to provide extra paperwork such as a government issued photo ID, proof of address and a pay slip or bank statement. It’s worth knowing that send limits also depend on the country you’re located in, and other factors including the limits imposed by the partners Xoom works with in different destination countries.

Here are the Xoom sending limits by level for senders in the US:

Sender level24 hour limit30 day limit180 day limit
Level 1 and Level 2 USD15,000USD25,000USD55,000
Level 3USD75,000USD90,000USD120,000

Wise vs Xoom: A comparison

Let’s finish with an example - sending USD1000 to a recipient in the UK. In this case, the transfer will be delivered directly into your recipient’s bank account in GBP.

Service providerFeeExchange rate (1USD = GBP)Recipient will receive
XoomNo transfer fee if you pay with your PayPal balance or linked bank account0.7261GBP726.10

*Fees and exchange rates correct at time of research, 7th December 2020

With Xoom there is no upfront fee in this example, as long as you pay for your transfer using your linked bank account or an existing PayPal balance. However, because the Xoom exchange rate used includes a markup, your recipient will get less in the end compared to making the same payment with Wise.

Wise uses a low transparent transfer charge, and the real mid-market exchange rate. It’s easy to see what you’re paying for your transfer.

There are many providers out there who can help you send money overseas. The choice can feel overwhelming - but doing some research in advance is the best way to make sure you get a good deal on your international transfer. Take a look at the simple, convenient payments available with Wise, to see if you could save. 

You can also open a free online Wise multi-currency account to hold, send and spend your money across multiple currencies, with a linked debit card to make purchases and ATM withdrawals all over the world. It couldn’t be easier.

Disclaimer: This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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