Money Transfer Services with SWIFT
A wire transfer is in many cases a good solution to send money quickly, whether domestically or internationally. Payments sent by wire are nearly instant while providing a secure and reliable delivery. In some cases, a wire or money transfer might be the only two options available to you for certain types of purchases; such as a house. Many times it is the benefactor that wants the guaranteed funds delivered in a timely fashion.
International transfers can vary - depending on where the transaction originated and where the money is being sent to. Most international transfers will require a bank SWIFT code and the account holder's IBAN number. Transfers in the USA can be done via ACH or through the financial check networks. In Europe, a transfer using SEPA can be made between countries similarly to how bank transfers occur in the USA. Many options exist for merchants, depending on the type of business and the solution services they need.
What is a Wire Transfer?
A wired payment an electronic transaction where the money is sent from one bank account to another. Traditional bank wires usually involve a bank account or credit union and send the funds via Fedwire or SWIFT networks.
Though, as the term “wire transfer” is broadly used to describe many types of transfers, it is important to verify the requirements are explained when a person requests a wire. Generally when a person requests for a “bank wire”, they are anticipating a standard bank-to-bank transfer. If this is not the case, another electronic payment method could be used to send funds.
What is a SWIFT Transfer?
Using the Society for Worldwide Interbank Financial Telecommunication, aka SWIFT system, customers are able to send funds internationally. These codes, also known as Bank Identifier Code (BIC) helps with the international flow of money. This is the largest network of international banks connected together to move finances between one another.
Each member bank has its own 8 or 11 character SWIFT code used to designate the location and branch of the recipient. Once the branch has been identified, the funds are sent and held at the branch for clearing and settlement into the recipient's bank account.
What is a SEPA Transfer?
Known as the Single European Payments Area, SEPA transfers allow for easy euro payments to be made between EU countries. What was once a fragmented and difficult area to make international payments, SEPA have created a much more efficient landscape for EU payments.
The use of SEPA is based on the use of IBANs but also use Bank Identifier Codes when sending transactions. In addition to transferring money, SEPA also allows for card-based transactions. Visa and MasterCard have adopted their debit card schemes to allow for full compliance and compatibility with SEPA guidelines.
What is an IBAN Transfer?
Similar to a SWIFT payments, IBAN transfers require senders to know the recipient's banking and account information. Depending on the country, some transactions will require a SWIFT, a BIC or IBAN to make a successful transaction.
IBAN refers to the International Bank Account Number tied to a personal bank account. This information is necessary for SEPA and wired transfers to ensure proper settlement of funds. Verifying all recipient's account and bank information is suggested before making a transfer.
How Fast are Transfers between Banks?
Many people choose to use wires for transfers since the money is sent quickly, most times in as little as 1-2 days. If you are located within the US, you have the possibility of a same-day transfer, but this can vary from bank to bank. International transfers will usually take an additional day or two to be completed.
The fast transmission of funds means a recipient doesn’t first have to wait for the money to clear before they can access the funds. Individuals that send through a wire have little to no resource, meaning once funds hit an account they will remain. This means that normally there are no holds placed on the funds received through wire transactions. In addition to their security, wire funds can also be tracked by recipients with a few phone calls.
Unfortunately, unlike wires, checks can be returned by banks when there are insufficient funds to cover the amount. Therefore, businesses selling a service or merchandise find that using a transfer by wire can be more secure than a check.
How Do Transfers Work?
If you want to send money via wire, all that is required is the submission of the recipient bank instructions to your bank. Customers will have to provide the bank account particulars of the recipient. In many instances, the sending bank will require the sender to fill out their bank wire forms. A few banks that allow customers to perform the complete wire process online, most institutions will require a signed form.
To receive money via a wire transfer, recipients will have to provide the particulars of the recipient bank account to the individual or company sending the funds. Confirming bank account information with is always best prior to providing instructions to the sender.
Usually, funds will move within a single day, it can take an additional day for the money to reflect in your bank account. To receive an incoming wire, the fee is about $10 or less depending on the bank. To send a wire, the fee is about $40, but this will vary from bank to bank.
Send a wire transfer directly from a bank account is generally a better way to transfer funds. Using a credit card to pay for a wire will usually cost more than paying from a bank account. This occurs because many times credit card companies will treat the transaction as a cash advance, which incurs more fees and higher interest rates than other transactions.
Start Sending and Receiving Payments Today!
For more information about obtaining a direct wire account for SWIFT or SEPA services through EU Paymentz, please contact one of our team members to begin the application process. Our European based team is more than happy to answer any questions or concerns that your business might have about making transfers using wires or SEPA.
Payment processing organizations interested in establishing direct banking relationships through European or other offshore banks, please contact one of our relationship managers to get started. Our strong financial and banking ties to the region allow us to quickly and easily place most businesses, including Gaming and Forex industries. We look forward to working with you and your team today.