Introduction

The world moves fast, and we expect financial services to keep up. When we send money to businesses or individuals domestically, the transactions are instant, easy, and free. In contrast, international bank payments take a longer time to settle, often with additional fees.

It can take up to one working week to complete a payment to an overseas bank account using traditional transfer systems, such as SWIFT. That’s why modern financial solutions that offer faster global money transfers are becoming more popular in recent years.

Let’s look at how international bank transfers work, how long they usually take, and common factors that cause their delays. 

What is a wire transfer?

A wire transfer is an electronic transfer of funds via a network that is administered by banks and transfer service agencies around the world. Wire transfers are sent by one institution and received by another. They require information from the party initiating the transfer, such as the recipient's name and account number. Wire transfers don't actually involve the physical exchange of cash but are settled electronically. 

How do wire transfers work?

Wire transfers, which are also known as wire payments, allow you to move money quickly and securely without the need to send cash. They allow two parties to transfer funds even if they're in different (geographic) locations safely. A transfer is usually initiated from one bank or financial institution to another. Rather than cash, the participating institutions share information about the recipient, the bank receiving account number, and the amount transferred.

The sender pays for the transaction upfront at their bank. The sender must provide their bank with the following information:

1. The recipient's name, address, and contact number, along with any other personal information required to facilitate the transaction.

2. The recipient's banking information, including their account number and branch number

3. The receiving bank's information, which includes the institution's name, address, and bank identifier (routing number or SWIFT code)

4. The reason for the transfer

How to transfer money internationally

Below are the ways in which you can send money internationally. The money order is the oldest preferred form of money transfer. All you have to do is deposit the money you want to transfer into your bank account. It can be cashed easily at any check-cashing location. This method is easy and budget-friendly.

1. Online Money Transfer

Online money transfer is the method the majority of people use today. It is the simplest way of transferring money abroad. You need the beneficiary’s account information like the SWIFT code or IBAN of the destination bank, IBAN, account holder details, etc. This process seems easy but also has heavy overhead charges as it excludes intermediator banks.

2. Online Wire Transfer

Online wire transfer is the new form of international money transfer. They include intermediator banks so the process charges are low and affordable. It is when the bank or the company sends money and contacts the beneficiary’s bank to deposit the funds. The process is safe and some of the wire transfer examples are Western Union and Book My Forex. 

3. Bank Drafts or Cashier’s Cheques

Cashier’s Cheques and Bank Drafts are easily available at various banks. You have to visit the bank outlet and purchase the drafts and cheques in the currency of the desired location you will be sending money. They are cheap but take a long duration to reach the beneficiary account. It is safe as it keeps track in case the draft or cheque doesn’t reach the said destination.

Emerging ways of sending money internationally through fintech solutions like Transfi which provide quick online transfers without the hassle of banks, cheques and long waiting times. Transfi’s Bizpay helps transfer money in the blink of an eye with minimal setting up and no extra cost. It also provides the leverage of various payment methods and currencies, all in one platform.

How long do international wire transfers take?

Generally speaking, international bank transfers will arrive within one to five working days. To send an international payment, you simply need to gather all the necessary information (IBAN number, BIC/SWIFT number, recipient’s banking details, etc.) and submit them to your bank, whether that’s in person or via an online banking app. In most cases, international bank transfers can only be processed on business days, provided that they are requested before the cut-off time, which varies from bank to bank.

What factors are most likely to slow international bank transfer times?

Although you’d assume that international bank transfer times would be instantaneous, particularly given the rise of online banking, they can be delayed for a number of reasons:

1. Fraud prevention

One of the main reasons for delays to international wire transfers are the fraud prevention processes and procedures put in place by banks. The SWIFT network requires transfers to pass through up to three correspondent banks before arriving at their destination. Then, once the funds have actually arrived, processing time at the recipient’s bank could delay payment even further.

2. Incorrect payment details

Another factor that can have a big effect on international bank transfer times is erroneous payment details. Payments can be sent back if any of your beneficiary’s information is incorrect, so before you make a payment, double check the name of your recipient, the name of their bank, their account number, their IBAN number, and their SWIFT/BIC code.

3. Bank holidays and weekends

Sometimes, slow international payments are caused by something as prosaic as bank holidays and weekends. Put simply, if the bank is closed, then your payment can’t be processed. If you’re making a payment that needs to be sent as soon as possible, check whether there’s a bank holiday in your recipient’s country beforehand. It’s also a good idea to send your payment at the start of the week, so that it has time to arrive and go through processing before the weekend.

4. Different currencies

Currency conversion can be another drag on international bank transfer times. If your payment needs to be received in a different currency to the one it was sent, processing times can be lengthened.

5. Different time zones

It might be midday in London, but it’s the middle of the night in Los Angeles. If you want to make sure your international bank transfer goes through as quickly as possible, you should try to send it during business hours in your recipient’s country.

To combat all these delays of international transfers and carry out the transactions in your own time, currency and payment method, use Transfi for the best solutions. Secured by API powered technology, Transfi is the one stop solution to all your cross border payment needs.

Conclusion

No matter your reason for making an international wire transfer, waiting and wondering when the money will arrive can be one of the most nerve-wracking parts. Hopefully, this guide gave you a better idea of what to expect and, more importantly, showed you what you can do to ensure your wire makes it to its destination in a timely manner. To understand more about how Transfi works and makes processes easier and convenient, checkout Transfi’s website. Transfi provides all payment solutions with a simple, easy to use platform catering users of many currencies and payment methods to come together and access global payment in the blink of an eye through Transfi’s Bizpay.

Frequently asked questions (FAQs)

1. What are wire transfers?

A wire transfer is an electronic transfer of funds via a network that is administered by banks and transfer service agencies around the world. Wire transfers are sent by one institution and received by another. They require information from the party initiating the transfer, such as the recipient's name and account number. Wire transfers don't actually involve the physical exchange of cash but are settled electronically. 

2. How do wire transfers work?

Wire transfers, which are also known as wire payments, allow you to move money quickly and securely without the need to send cash. They allow two parties to transfer funds even if they're in different (geographic) locations safely. A transfer is usually initiated from one bank or financial institution to another. Rather than cash, the participating institutions share information about the recipient, the bank receiving account number, and the amount transferred. The sender pays for the transaction upfront at their bank. The sender must provide their bank with the important information.

3. What are the factors that slow down the process of international money transfer?

• Fraud prevention
• Incorrect payment details
• Bank holidays and weekends
• Different currencies
• Different time zones

4. What are the different ways in which money can be transferred internationally?

• Online money transfer
• Online wire transfers
• Bank Drafts or Cashier’s Cheques
• Fintech money transfer solutions

5. How long do international wire transfers take?

International bank transfers will arrive within one to five working days. To send an international payment, you simply need to gather all the necessary information (IBAN number, BIC/SWIFT number, recipient’s banking details, etc.) and submit them to your bank, whether that’s in person or via an online banking app. In most cases, international bank transfers can only be processed on business days, provided that they are requested before the cut-off time, which varies from bank to bank.