How Long Do International SWIFT Transfers Take?

When it comes to transferring money internationally, SWIFT payments are one of the most common methods used worldwide. Understanding how long a SWIFT payment takes and the factors influencing its speed can help you plan your transactions more effectively. This blog will look into the details of SWIFT payments, from the process and benefits to the time it takes for these transfers to be completed.

What is a SWIFT payment?

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global network that enables banks and financial institutions to send and receive information about financial transactions in a secure, standardized, and reliable manner. A SWIFT payment refers to a payment sent via the SWIFT network, which is commonly used for international wire transfers.

Benefits of choosing SWIFT for your transfer needs

SWIFT payments offer several advantages, making them a preferred choice for many individuals and businesses:

Global reach: The SWIFT network connects over 11,000 financial institutions in more than 200 countries, ensuring extensive global coverage.

Security: SWIFT transactions are highly secure, utilizing encryption and standardized messaging to protect sensitive information.

Reliability: With a well-established infrastructure, SWIFT ensures that messages are delivered accurately and promptly.

Transparency: SWIFT payments provide detailed tracking and reporting, allowing you to monitor the status of your transactions.

What information do you need to send a SWIFT transfer?

To send a SWIFT payment, you’ll need specific information to ensure the transaction is processed correctly:

• Recipient’s full name and address: The recipient's full legal name and address. 
• Recipient’s bank details: The name and address of the recipient’s bank. 
• SWIFT/BIC code: A unique code identifying the recipient’s bank. 
• IBAN (International Bank Account Number): The recipient’s bank account number in an international format. 
• Purpose of payment: The reason for the transfer, which may be required for regulatory compliance. 
• Amount and currency: The amount to be transferred and the currency in which the transfer will be made.

How long do SWIFT payments take, and why?

The duration of a SWIFT payment can vary, but it typically ranges from one to five business days. Understanding why this time frame exists requires looking at several stages and factors involved in the process.

Processing time of sending bank

When you initiate a SWIFT payment, the first step is for your bank to process the payment request. This involves verifying the details, ensuring sufficient funds are available, and completing any necessary compliance checks. The time taken for these steps can vary between banks, but it generally takes a few hours to a full business day.

Intermediary banks

One of the key reasons SWIFT payments can take several days is the involvement of intermediary banks. A SWIFT payment often doesn't go directly from the sending bank to the receiving bank. Instead, it may pass through one or more intermediary banks, especially if the two banks don’t have a direct relationship or are in different countries. Each intermediary bank processes the payment, which can add to the overall time.

Recipient bank processing time

Once the payment reaches the recipient's bank, it must be processed and credited to the recipient's account. This step also involves verifying the payment details and ensuring compliance with local regulations. The recipient bank's processing times can vary, but it typically takes one to two business days.

Time zones and public holidays

Another factor affecting SWIFT payment times is the difference in time zones between the sending and receiving countries. For example, if you send a payment from the United States to Japan, the time zone difference means there will be a lag in processing times. Additionally, public holidays in either the sending or receiving country can delay the process as banks may not operate on those days.

Factors contributing to delays in SWIFT payments

Several specific factors can further influence the speed of SWIFT payments:

• Bank cut-off times: Each bank has specific cut-off times for processing payments. Transactions initiated after the cut-off time may not be processed until the next business day. It’s important to be aware of your bank’s cut-off times to avoid unnecessary delays.

• Verification processes: For larger sums or transactions that trigger certain alerts, enhanced verification processes might be required. This can involve additional checks to prevent fraud or money laundering, which can extend the processing time.

• Intermediary bank delays: If the payment route involves multiple intermediary banks, any delays at these banks can slow down the overall process. Each bank's processing speed and cut-off times will affect the total transfer time.

• Currency conversion: If the transfer involves converting currencies, additional time might be needed to perform the exchange. Some banks or intermediary services might take longer to process the currency conversion, adding to the total time required for the payment to reach its destination.

SWIFT payments for businesses

For businesses engaging in international trade or dealing with global partners, SWIFT payments offer a robust and reliable method for transferring funds across borders. SWIFT provides several options tailored to meet the diverse needs of businesses, ensuring efficient and secure transactions.

Priority payments

For urgent transactions, businesses can opt for priority payments through the SWIFT network. This option ensures that the funds are processed and transferred as quickly as possible, often with expedited handling at both the sending and receiving banks. Priority payments are ideal for time-sensitive transfers, such as paying international suppliers to secure immediate shipments or meeting critical financial obligations.

Bulk payments

Businesses that need to make multiple payments simultaneously can benefit from SWIFT's bulk payment options. This feature allows companies to send numerous payments in a single transaction, simplifying the process and reducing administrative overhead. Bulk payments are particularly useful for payroll disbursements to international employees, recurring vendor payments, and settling multiple invoices in different currencies.

Automated payment solutions

Integrating SWIFT payments with a business’s accounting and financial systems can streamline the payment process. Automated payment solutions enable companies to set up recurring payments, automate batch processing, and maintain accurate records of all transactions. This integration reduces manual entry errors, enhances efficiency, and ensures timely payments to international partners.

Multi-currency accounts

SWIFT's multi-currency capabilities allow businesses to manage funds in various currencies without needing multiple bank accounts. With a multi-currency account, businesses can hold, receive, and transfer funds in different currencies, reducing the need for frequent currency conversions and minimizing associated costs. This flexibility is essential for businesses operating in multiple countries or dealing with suppliers and customers in different currencies.

Enhanced security features

Security is a top priority for businesses handling international transactions. SWIFT offers enhanced security features, including encryption and authentication protocols, to protect sensitive financial information. Businesses can also implement additional security measures, such as dual authorization and transaction monitoring, to safeguard against fraud and ensure compliance with regulatory requirements.

Real cost of SWIFT transfers: From one bank to another

When making international transfers through the SWIFT network, understanding the various costs involved is crucial for effective financial planning. SWIFT payments can incur several types of fees, depending on the banks involved and the specifics of the transaction. Here’s a breakdown of the typical costs associated with SWIFT payments and what you should consider when planning your transfers.

Sender’s bank fees

The first cost you’ll encounter is the fee charged by your bank for initiating a SWIFT transfer. This fee covers the processing of the payment request, ensuring the transaction meets all necessary compliance checks and the secure transmission of the payment message through the SWIFT network. Sender’s bank fees can vary significantly between banks, so it’s worth comparing rates to find the most cost-effective option.

Intermediary bank fees

SWIFT payments often pass through one or more intermediary banks before reaching the recipient’s bank. Each intermediary bank involved in the transfer may charge a fee for handling and forwarding the payment. These fees, also known as correspondent bank fees, can add up, especially if the payment route involves multiple banks. It’s important to be aware that these fees are typically deducted from the transferred amount, reducing the final sum received by the beneficiary.

Recipient’s bank fees

Once the payment reaches the recipient’s bank, additional fees may be applied for processing and crediting the funds to the recipient’s account. These fees can vary depending on the recipient’s bank policies and the currency of the payment. Some banks may charge a flat fee, while others might impose a percentage-based fee. It’s advisable to check with the recipient’s bank to understand the potential costs involved.

Currency conversion fees

If the SWIFT payment involves converting currencies, there will be additional costs for the currency exchange. Banks and financial institutions typically apply a margin to the exchange rate, which can vary widely. Comparing exchange rate margins between providers can help you minimize these costs. Additionally, using a multi-currency account can sometimes reduce or eliminate the need for immediate currency conversion, providing more favourable exchange rates.

Shared, OUR, and BEN options

When making a SWIFT payment, you can choose from three types of fee structures: Shared (SHA), OUR, and Beneficiary (BEN).

• Shared (SHA): The sender and the recipient each pay their respective bank fees. Intermediary bank fees are usually deducted from the transferred amount.
• OUR: The sender covers all the fees. This ensures the recipient receives the full amount but may result in higher costs for the sender.
• Beneficiary (BEN): The recipient pays all the fees, meaning the transferred amount will be reduced by the total of all costs involved.

Hidden costs and transparency

While most banks provide a breakdown of the fees, some costs may not be immediately apparent. Hidden costs, such as unfavourable exchange rates or additional processing fees, can impact the overall cost of a SWIFT payment. It’s essential to ask for detailed fee structures and compare different providers to ensure transparency and avoid unexpected expenses.

Cost management strategies

To manage and reduce SWIFT payment costs, consider the following strategies:

Compare providers: Different banks and financial institutions have varying fee structures. Comparing costs can help you find the most economical option.

Use multi-currency accounts: Holding funds in different currencies can reduce the need for immediate conversions and provide better exchange rates.

Plan payments: Scheduling payments to avoid multiple intermediary banks or choosing times when banks are open can reduce fees and delays.

Negotiate fees: If you make frequent international transfers, negotiating fees with your bank can lead to better rates and reduced costs.

Wire transfers vs. SWIFT transfers

While SWIFT payments are a type of wire transfer, they are often compared to other wire transfer methods. Here are some key differences:

• Network: SWIFT transfers use the SWIFT network, while other wire transfers may use different networks such as Fedwire or CHIPS in the United States.

• Speed: SWIFT transfers can take one to five business days, whereas some domestic wire transfers can be completed within the same day.

• Coverage: SWIFT has a broader international reach, making it suitable for global transactions, while other wire transfer networks may be more limited in geographic scope.

Quick & cost-effective SWIFT payments with MTFX

When it comes to making international transfers, MTFX provides a reliable and cost-effective solution through the SWIFT network. Here’s how MTFX can streamline your SWIFT payments and ensure you get the best value for your money.

Bank-beating exchange rates: MTFX offers highly competitive exchange rates for SWIFT payments, often significantly lower than those provided by traditional banks. By accessing interbank rates, we ensure you get the most favourable exchange rates, saving you money on every transaction.

Low transaction fees: One of the primary benefits of using MTFX for your SWIFT payments is the low transaction fees. Traditional banks often charge high fees for processing international transfers, but we keep costs down, making it an affordable option for businesses and individuals alike.

Fast and efficient transfers: MTFX understands the importance of timely transactions. With a streamlined process, MTFX ensures that your SWIFT payments are processed quickly and efficiently. This means faster delivery of funds to your international partners, suppliers, or beneficiaries.

Dedicated customer support: MTFX offers dedicated customer support to assist with your SWIFT payments. Our team of experts is available to answer your questions, provide guidance, and ensure that your transactions are executed smoothly. Whether you need help setting up a payment or tracking a transaction, MTFX’s support team is ready to assist.

Tailored solutions for businesses: For businesses, MTFX offers tailored solutions to meet your specific needs. Whether you require bulk payment processing, automated payment solutions, or specialized reporting, MTFX can customize its services to fit your requirements. This ensures that your international payment processes are aligned with your business operations.

Streamline your global money transfers and international payments

Managing international money transfers can be daunting, but understanding the intricacies of SWIFT payments can make the process significantly smoother. SWIFT payments offer a secure, reliable, and globally recognized method for transferring funds across borders. By understanding the costs involved, and leveraging the benefits of modern financial services, you can optimize your international transactions.

MTFX stands out as a valuable partner here, providing competitive exchange rates, low fees, and fast, efficient transfer options. Whether you're a business dealing with multiple international partners or an individual sending money abroad, MTFX offers the tools and expertise to meet your needs. 

Sign up on MTFX for your SWIFT payments and not only save time and money but also gain the peace of mind that comes with knowing your transactions are in capable hands.