If you’re sending money abroad via a bank-to-bank transfer, you will need a SWIFT code and the international bank account number (IBAN) of your recipient. However, this might be one of the most expensive ways to send money internationally!
Here we’ll examine what is needed for an international bank transfer, as well as the speed and costs involved.
You may find that it is substantially faster and cheaper to use a specialist money transfer provider, so we’ll look at that option too for comparison.
Sending Money Internationally Through a Bank
The two pieces of information we’ve mentioned are the vital universal codes. You need to know:
- Your recipient’s name – or the name on their account if different.
- Usually, a SWIFT code, which stands for the Society for Worldwide Interbank Financial Telecommunications and is the most common global network used.
- Alternatively, you could be asked for a BIC code. This stands for Bank Identifier Code and relates to the receiving account’s branch or head office.
- The IBAN number to specify the exact account to which the transfer is being made.
All of this information is easy to find on your bank statements, from your branch, or by logging into an online banking account, so it shouldn’t be too difficult for your recipient to provide.
However, there might be an issue because interbank transfers can take a lot of time and be relatively expensive.
In terms of speed, if your payment is sent through the SWIFT system, which most are, the cash doesn’t travel directly from your account to your payee. Instead, it passes through multiple intermediary banks and usually takes around five working days.
Costs depend on the type of payment, your bank tariffs, and where you’re sending money to and from, but typically include:
- Less competitive exchange rates. Remember that international transfers are a service many banks are obliged to offer. Still, it is a secondary offering for their customer’s convenience – so it isn’t in their interest to provide great exchange rates.
- A percentage of the transfer value in fees. Most banks charge around 3-5%, but including processing charges and wire fees, can mean up to 10% of your cash is lost on bank levies. These percentages vary between banks.
If you’re looking for more security, lower fees, and faster deposits, a money transfer service is undoubtedly a better option!
Specialist Money Transfer Services Compared to Banks
There are lots of reasons a money transfer provider is a superior option. In essence, they specialize in overseas transfers and have a vested interest in offering you the lowest costs and the fastest service – whereas a bank won’t be too bothered about this small part of their business!
It’s also much easier, and you can often save the details on your account if you need to send another transfer to the same person or company.
Here are some of the most significant benefits to considering money transfer services before logging into your online banking:
- The service is faster. Waiting days for your transfer to come through can be frustrating, especially if you’re dealing with a financial emergency. Services such as Cashero offer instant transfers between users, so the whole process is completed moments after you send or request the funds.
- Your exchange rates will be better. Banks tend to use rates in line with the currency exchanges, which aren’t going to be competitive. However, an online transfer service like Cashero uses its expertise and economies of scale to offer market-beating rates to save you a significant amount of money.
- Security is higher, with the cash handled only by the transfer provider and not by multiple banks along the way. The use of One-Time-Passwords, saved account details, and other security measures boost both external security and help provide protection against user-error, such as sending to the wrong account.
- Fees are reduced, or non-existent! Remember that money transfer services want your trade, and with fewer overheads and a more streamlined offer, you won’t be facing hefty wire fee charges or extra processing fees.
Another great reason to check out the rates from money transfer providers is that you can transfer just about any amount of cash from any bank to anywhere in the world in only a few minutes.
Convenience is king. Whether you need to send a transfer same-day from your mobile or don’t have time to visit your local bank branch with your photo ID (and all the inevitable queuing!), money transfers offer a quicker, slicker process. Try Cashero today.
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As of the date of publication, the information contained on this page is deemed to be factually accurate for all terms of conditions, features, and fees. Changes made to Cashero’s terms of conditions, features, or fees after the publication of this content may not be accounted for.
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