Cash Pickup vs Bank Deposit for Sending Abroad

When you send money abroad, the person receiving it usually has two ways to get the funds: collect cash from an agent location, or have the money paid into a bank account. Cash pickup can be ready in as little as 15 to 30 minutes, later the same day or the next day, depending on the destination, the amount and the opening hours of the pickup location¹. A transfer to a bank account usually takes up to two working days, depending on the receiving country¹.

The method you choose affects how quickly the money arrives, what your recipient needs to bring to collect it, and what happens if something goes wrong. It does not automatically make the transfer cheaper or more expensive: the fee depends on the provider and the destination, not on whether the money is collected as cash or paid into an account.

This page explains how each method works, what it costs, what identity checks apply, how long each one takes, and where you can send money through the Post Office. It also covers what protection you have and where that protection stops.

Cash pickup or bank deposit: how each one reaches your recipient

With cash pickup, the money is sent to an agent location in the destination country and your recipient collects it in person. Post Office International Money Transfer works with Western Union and offers cash pickup from hundreds of thousands of agent locations worldwide². The recipient needs to bring identification and the reference number for the transfer. The money is not paid into any account, so there is no bank in the destination country involved in receiving it.

With a bank deposit, the money is sent to your recipient's bank account. The recipient does not need to go anywhere to collect it. MoneyHelper notes that being paid into a bank account saves trips to the bank, is safer than carrying cash, and means you do not have to wait for a cheque to clear⁷. For people who already have a bank account, this is usually the simpler option.

The two methods also differ in what your recipient needs. For cash pickup, they need ID and the transfer reference. For a bank deposit, they need a bank account that can receive the payment, and you need their account details. The details needed to pay someone abroad page explains what those are for different countries.

Some recipients cannot use a bank account at all. People who cannot get a bank or building society account can collect benefit or State Pension payments in cash by visiting a Post Office⁸. For those recipients, cash pickup or a Post Office collection is the practical route.

What each delivery method costs: fixed fees and extra charges

The delivery method itself does not set the fee. Providers charge for the transfer, and the cost can be a fixed fee, a margin added to the exchange rate, or both. What matters is the total your recipient receives after all charges.

Before you confirm a transfer, you can see the fee and the exchange rate. When comparing balance transfer offers, StepChange advises checking for any hidden fees, including on 0% balance transfers⁴. The same principle applies to international transfers: a transfer advertised as free may still carry a cost built into the rate.

Some costs sit outside the transfer fee. If you fund a transfer with a credit card, a money transfer credit card typically charges around 4%⁴. Cash withdrawals on a credit card attract a fee of around 2% of the amount you withdraw, plus interest from the day you took the money out⁵. Paying by bank transfer from your current account avoids those credit card charges.

If you are sending money to family abroad, the remittance costs and what to check page sets out what to look at. The exchange rates page explains how the mid-market rate and provider margins work.

Your bank and the recipient's bank may charge on top

The fee you pay the transfer provider is not always the only cost. Your own bank may charge for the payment, and the recipient's bank may charge for receiving it.

Using your debit card abroad typically costs between £1 and £3 each time you use your card, except for Euros in the EU⁷. Some banks let you use your cash card at the Post Office free of charge, but this varies, so it is worth asking your local post office⁹. Credit unions may charge each time you use a cash machine to withdraw money or view your balance¹⁰.

On the receiving side, charges depend on the recipient's bank and the destination country. The receiving a payment from abroad page covers what the recipient may be charged and how to trace a payment.

If you are sending a large sum, the sending a large sum overseas page explains limits and source of funds checks. Post Office International Money Transfer has a £50,000 bank-to-bank limit, but the limit may not be available for all receiver countries and is subject to restrictions based on various factors¹¹.

Sending to over 200 countries: availability depends on the destination

Not every delivery method is available everywhere. Cash pickup depends on there being an agent location in the destination country, and bank deposit depends on the recipient's bank being able to receive the payment.

Post Office International Money Transfer lets you send money to bank accounts or for cash pickup from hundreds of thousands of agent locations worldwide². Western Union, which Post Office uses for international transfers, says money is usually deposited into the receiver's bank account within one or two working days, but this applies to certain countries only and may be same day or up to three working days depending on when and where it is sent¹².

Some countries restrict what can be sent or how it can be received. The restricted currencies and country rules page covers India, China, the UAE and others. The payment limits page explains daily and per-payment caps at home and abroad.

If you are sending to a mobile wallet rather than a bank account or cash pickup, the sending to a mobile wallet abroad page explains how that works.

Identity checks you need to pass before sending

Before you can send money, you need to prove who you are. The checks apply to the sender, and in some cases the recipient also needs to show ID to collect cash.

For Post Office International Money Transfer, accepted ID in branch includes a passport, a valid UK, EU or EEA driving licence, or an EU or EEA national identity card¹. To send £800 or more, you must upload a photo of your ID, and you only have to do this once². The documents accepted for online verification include a passport, a UK, EU or EEA driver's licence, an EU or EEA residence card, an EU national ID card (except UK), emergency travel documents, a shipping passport, and a UK application registration card; temporary or emergency passports are also accepted, and front and back copies are required¹¹.

These requirements mirror what banks ask for when you open an account. Most banks ask for a driving licence or passport to prove your identity, or a photo of these if you are applying online, often along with a selfie⁷. You usually have to show two separate documents proving identity and address, such as a passport and a recent bill⁹. If you cannot provide these, a letter from a responsible person such as a GP, teacher, social worker or probation officer may be accepted⁹.

The identity and security checks when sending page explains verification and held payments in more detail.

How long a transfer takes to arrive

Speed is one of the main differences between the two methods. Cash pickup is usually faster, but it depends on the recipient collecting the money. Bank deposit is slower to arrive but does not require the recipient to do anything.

Post Office International Money Transfer says cash pickup can be ready in as little as 15 to 30 minutes, later the same day or the next day, depending on the destination, amount and pickup location opening hours¹. A transfer to a bank account usually takes up to two working days, depending on the receiving country¹. Western Union says it typically takes up to one to two business days after the transfer is processed for the money to be ready for pickup or credited to a bank account, credit or debit card, and this varies by receiving country and transfer amount¹².

For comparison, domestic transfers within the UK can be faster. NS&I says an electronic transfer deposit received by 18:30 on a banking day will normally clear no later than the next banking day, while debit card and cheque deposits clear no later than the seventh banking day after being received¹³. NS&I also says top-ups by bank transfer or standing order can take 2 to 3 working days to show in your account¹⁴.

The first payment after registration can take up to 5 working days to reach your account, depending on your bank³. The how long an international payment takes page covers cut-off times, holidays and delays.

Sending money through the Post Office

The Post Office is one of the places you can send money abroad in person. It offers international money transfers through Western Union, with payout by bank account or cash pickup². You can also use Post Office branches for everyday banking: paying in and taking out cash, depositing cheques, and checking your balance at thousands of branches across the UK¹⁶.

The Post Office does not offer current accounts of its own; it offers in-branch access to its partner banks' services¹⁷. Cash deposits made using a card will normally show in your account on the same day¹⁷. Cheque deposits are available for most major UK banks, with no limit to cheque deposits at the Post Office¹⁸. You need your cheque, your sort code and account number, your bank's paying-in slip, and a branded bank envelope; the receipt will only include your sort code and account number¹⁸.

Each bank sets its own limits for cash withdrawals and deposits, and some banks may charge for certain services¹⁶. The Post Office network has at least 11,500 branches, required by UK Government policy, with 99% of the UK population within three miles of their nearest Post Office outlet and 90% within one mile¹⁹. As of March 2021, there were 1,321 Post Offices in Scotland, a decrease of 51 from February 2020¹⁹.

The Post Office International Money Transfer page covers fees and limits in more detail. The ways to send abroad page compares banks, specialist providers, brokers and cash collection.

What protects you, and where protection stops

International money transfers are not covered by the Financial Services Compensation Scheme in the way bank deposits are. The FSCS protects deposits held with banks, building societies and credit unions that are authorised by the Prudential Regulation Authority and the Financial Conduct Authority, up to the limit set by those regulators²¹. A payment firm handling your transfer is not a bank deposit, so the FSCS does not apply to the money while it is in transit.

The FCA sets rules for payment services and other activities, while the PRA is responsible for deposits and insurance rules²¹. The Financial Services and Markets Act 2023 gave the FCA powers to oversee and ensure continued provision of cash deposit and withdrawal facilities to individuals and businesses²³. The FCA confirmed that from 18 September 2024, banks and building societies will be required to provide cash access²⁴.

If something goes wrong with a transfer, your rights depend on the provider and the payment method. With Post Office International Money Transfer, you can cancel a money transfer only if it has not been picked up by your receiver; if you sent money to a bank account, you can cancel it if the transfer has not been completed by your receiver's bank¹¹. The tracing, cancelling or recalling a payment sent abroad page explains what to do if a transfer goes wrong.

The safeguarding and the FSCS page explains how your money is protected with a payment firm, and the when a payment firm fails page covers getting safeguarded funds back. Your rights under the Payment Services Regulations are set out on the payment rights page.