An international bank money transfer is by far the safest way to transfer money internationally; furthermore, it is usually quickest way to ensure funds are transferred from one country to another. However, it is always important to know what types of international bank transfers are available and the types of fees and costs that may be incurred when using the services. This article will attempt to address the most all popular types of international bank money transfers and how they are executed.
SWITF Bank Transfers
The vast majority of international bank money transfers are executed through SWIFT. Founded in Brussels in 1973, the Society for the Worldwide Interbank Financial Telecommunication, or SWIFT, was established to promote standards for global interactivity and financial transfers. Furthermore, SWIFT is the most popular type of international bank transfer used today.
The SWIFT transfer process involves sending computerized messages from one bank to another indicating that funds have been paid or received by the receiving bank and also acts as a guarantee or promissory note to the receiving bank. Member institution banks are provided with a specific SWIFT code or bank identifier code. In general, SWIFT codes are eight characters long and are unique to the member banking institution. SWIFT bank transfers are considered to be among the most secure and safest available, and that is why more than 75% of the banks in the world you SWIFT as their international bank transfer protocol.
Other Types of International Bank Transfers
While SWIFT is certainly the most common form of international bank transfer, there are other less used protocols such as the International Bank Account Number (IBAN) that are used. In addition there are many private services that act as transfer agents and accept remittance payments for delivery to overseas recipients. Twp of the most popular of these types of cash transfer agencies today are Western Union and Moneygram. The services these companies provide is very similar to banks when it comes to international money transfers.
International Bank Transfer Procedures
Regardless if you use a bank or a private money transfer agent, the sending and receiving process will be very similar. The person sending the money will need to initiate a transfer by paying the bank an amount sufficient to cover the cost of the transfer as well as the amount to be sent.
Prices for sending and receiving bank transfers vary widely by not only by company or bank but by sending and receiving country as well. Many times, the sender will be charged to send the money and the receiver will be charged to receive the money. Therefore, it is always important to ask the bank or private transfer agent what their fees are and who is responsible for them -- before sending money internationally. Furthermore, you need to find out if the money transfer will be conducted in one currency only or if the transfer will be submitted for foreign currency exchange. If the remittance is subject to an exchange rate, the bank or transfer agent will usually charge a premium and earn money on the exchange rate as well. Therefore, if at all possible, you should perform international money transfers that are sent and received in the same currency.
There are a number of options available for sending and receiving international bank transfers; therefore, you should research as many options as possible before initiating a bank transfer. By taking your time to research the policies and policies, procedures and fees of the transfer bank or agent, you can save yourself a lot of surprises and frustration in the end.