Only a few decades ago, sending money across international borders was a slow and somewhat risky endeavor that only well-to-do individuals dared attempt. The main concerns for people sending money abroad were the cost and reliability of their chosen transfer method.
With current technological advancements, however, the issue of speed now seems to be an equally important consideration. Consumers have grown to expect instant services — and international money transfers aren’t an exception.
Before they make a transaction, a lot of people now often raise questions like “How long does it take to transfer money internationally online?” Unfortunately, there’s no one-size-fits-all answer to this question. Several factors affect the turnaround time for international funds transfers, such that standard timelines range from a few seconds to several business days. But when you use Cashero, you can make international transfers from one Cashero user to another online instantly.
Transfer Time Influencing Factors
If we had it our way, every international money transfer would reach the recipients instantly and free of charge. Banks and other financial institutions are, however, governed by rules and regulations that, among other things, keep your money safe and curb criminal activities. They are also prone to the use of rather out-dated technology, which keeps your transfers going at snail speed. Unfortunately, these factors delay the movement of money across borders. Let’s take a look at the most common factors that influence the speed at which online money transfers are completed.
Transfer Method
How you choose to transfer money internationally is the single-most-important factor that affects the speed at which it’ll reach its intended destination.
Until recent years, the most popular method for international transactions was by wire transfer. In the United States, most domestic wire transfers take between a few seconds to 24 hours. Transfers from the U.S to foreign banks are typically completed in 1–5 days.
Destination
The country to which you’re sending money is another vital cog in the grand scheme of how soon your transfer will reach its destination. Some countries follow different financial protocols and may also have slower financial infrastructure than usual. These slow-to-pay countries may delay payments up to a week or more. Before you make a transfer to a country that you’re not sure of, check with your financial service provider for a current list of slow-to-pay countries. That way, you’ll know what to expect.
Different Currencies
If you’re sending a transfer from the U.S to a country that uses global currencies like the Sterling or Euro, your transaction is more likely to go through a lot quicker. Transferring obscure currencies that aren’t traded on most foreign exchange markets is often a drag on international money transfer turnaround times. As long as the currency is supported, the technology behind Cashero allows its transactions between users to take place immediately.
Weekends and Holidays
Although you may be hunched over your desk, crunching it out at work, it’s most likely currently a holiday somewhere in the world. If an intermediary bank or your recipient’s bank is closed, then your payment can’t be processed. Likewise, if you initiate a transfer using traditional banks late on a Friday, your transfer may be initiated the following Monday. Also, consider that weekends in countries like the UAE are on Friday and Saturday, so a late Thursday transfer may still get delayed. Therefore, if you’re making an urgent international money transfer, check whether your service provider works during the weekend or public holidays locally and in your recipient’s country beforehand. This is one of the major drawbacks to traditional options for making international money transfers. But when using a digital payment service like Cashero, you can send money to other users any time of day or night, even on weekends or holidays. No waiting required.
Time Zones and Cut-Off Times
As with weekends and holidays, knowing the relevant banks’ time zones and bank cut-off times makes it easier to estimate how soon your transfer will go through. For example, if your bank’s cut-off time is 13:00, if you initiate a transfer a few minutes into lunch hour, it’ll be processed the following morning.
If there’s a significant gap between your bank and the receiving bank, then you should expect a transfer delay. If, for example, a payment is made at 8:00 from the UK to Vancouver, Canada, it will be pending for 10 more hours until it’s 8:00 in Canada and banks open. If your transfer is urgent, then you should try to initiate it during your recipients’ banks’ business hours. Yet again, this inconvenience can easily be bypassed through the use of more updated options where you can make transfers on your own time, when it suits your needs. Not the banks.
Entry Errors
Now that we’ve taken transfer methods, currencies, and other factors into consideration, surely your international transfer will sail through smoothly. Actually, the final thing you need to verify is the accuracy of your banking information entries. Nobody’s perfect, and a single transposed number can delay your international transfer by several days.
If you’re sending a wire transfer, you may need to enter an International Bank Account Number or (IBAN) or SWIFT code and account number. Errors with the account number are likely to get picked up after the transfer has already reached your recipient’s bank. The cash will most likely get returned, but this can be a slow process. If you’re transferring money using a digital payment provider, you typically have to enter the recipient’s email address.
Does it Matter How Much I Send?
As a rule of thumb, the more money you want to transfer internationally, the more checks it’ll have to go through before it’s approved. In the U.S, transfers above $10,000 require verification and a reason for the transaction. Numerous small payments with the same dollar amount to the same account may also get flagged and delayed. The Office of Foreign Assets Control also monitors all international money transfers to avert money laundering and terrorist funding activities. Transfers to safe-haven countries or countries under sanctions by the U.S government may also be delayed or outright frozen.
Can I Cancel an International Money Transfer?
If you reside in the United States, you can usually cancel an international wire transfer within 30 minutes. That’s, however, only possible if the recipient hasn’t withdrawn or picked up the cash. For other financial institutions, you may have to wait for the transaction to bounce back if you’ve made an error and your transfer doesn’t have a valid recipient. Overall, different service providers have different terms of service, so it’s important to know what you’re working with before you transact.
The Bottom Line
Technological developments in the past few years have made it possible to safely and reliably transfer money internationally. For most people, however, the speed at which the cash will reach its intended recipients is an even more important factor. Transfers may take anywhere between a few seconds to a few days. The determining factors affecting transfer speed are the transfer method, currencies, time zones, and destinations.
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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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