There are several ways to transfer money from one bank account to another, with wire transfers being one of the most popular methods around the world.
This type of transfer uses wire networks, such as the Society for Worldwide Interbank Financial Telecommunication (SWIFT). These networks basically act as the messenger between the banks in an electronic money-sending transaction.
Typically, a wire transfer takes about 3 business days to be processed but can take as long as 5 business days. Occasionally it can even take a few weeks, and while that’s not commonplace it is not infrequent either.
If you are not used to sending wire transfers, the process can be a little confusing and tedious – here we outline everything that is involved in sending a wire transfer, and how you can improve your payment process.
Do Some Currency Research
Wire transfers are a popular way to send money internationally.
If you plan on sending money abroad, it’s a good idea to do some currency research – you’ll need know the currency you’re going to send money in.
This is very important because you want to make sure that your bank, which you are sending the wire transfer from, can send money in that currency.
In most cases, major currencies such as the US Dollar and the Euro, will be available- but some other currencies may not be. When that happens, your bank will still accept your wire but at substantially higher rates, all the while hinting that it’s a difficult or exotic currency and that they’re providing great customer service by meeting your needs.
Find Out About Fees
Wire transfers can be quite expensive.
A wire transfer typically can cost anywhere between $30 and $80. These rates can be even higher depending on the currency and amount being sent.
Don’t forget to make sure you have sufficient funds available to cover both the transfer and the fees, keeping in mind the foreign exchange conversion rates that will be applied by your bank.
In addition to these fees, the recipient of the funds may also be subjected to a fee by the receiving bank. These fees are never disclosed upfront and can end up as an unpleasant surprise, and can become a bone of contention between you and the recipient who expects to receive the full amount invoiced, net of any fees.
Occasionally, the final receiving bank won’t be able to receive the wire transfer directly, especially if it’s an international wire in a different currency. This means that the final receiving bank will have to accept the funds from an intermediary bank. Many intermediary banks will also charge the recipient a fee.
Gather All The Necessary Information
If you wish to send a wire transfer, you will need all of the following information:
- Your bank account number and full address
- The recipient’s name and full address
- The recipient’s branch number and full address
- The recipient’s bank account number
- The recipient bank’s BIC/Swift Code.
- ABA or Routing Number: If sending money to the USA, US banks can be identified from a long set of numbers called a routing or ABA number.
- IBAN: When sending money to Europe, they will often ask for an IBAN number. This long stream of numbers includes the account number and also the bank identifier.
Calling your bank in advance ahead is recommended so that you can find out exactly what your branch requires, as some banks may seek additional information.
Also, If you’re sending a wire overseas, you may be dealing with a foreign language – so a call with your financial institution could really help you to be clear about the details of the transfer. It is wise to be aware of the requirements of each country. For example, if sending a wire to China, the Chinese name of the company as recorded with their bank, may be slightly different from their trade name.
Take A Trip To The Bank
Making time to visit your bank during banking hours can be difficult, so it’s important you have completed the above steps to ensure you save time – and don’t have to come back again because you forgot a crucial piece of information.
When you get to the bank, you will then complete your branch’s wire transfer form. You will need to fill out the information for both you as the sender and for the receiver’s bank using all the details you have previously gathered.
Double check all documentation that you have filled out to make sure all account details and monetary figures are correct.
It’s worth noting that you may also be asked to show or verify any required identification information, so having a valid piece of government ID with you is recommended. In some cases your bank may ask you for the commercial documents pertaining to the payment, viz., supplier’s invoice or commercial agreement and proof of shipment or delivery of services.
Consider The Alternatives
There are much easier, cheaper and faster ways to send money both domestically and internationally as compared to sending wire transfers.
A popular alternative would be an online transfer. This is where the old-fashioned concept of wiring money meets with the modern technology of electronic funds transfer (EFT). Online transfers can be done online on any computer with Internet access via the likes of a Money Service Business (MSB).
One such platform would be REMITR, where our goal is to offer the most simple, fast and inexpensive payment process to our customers. Our service allows for companies to send money to over 150 countries worldwide within 1 business day – and all for as little as $5!
With REMITR, you get the best live foreign exchange rate, regardless of banking hours, while the beneficiary pays no fee to receive the funds into their account. Funds are paid in the beneficiaries’ own currency, thus avoiding expensive USD to a local currency conversion by their local bank.
So, if you’re tired of being ripped off by the unnecessary fees of banks, or fed up on waiting for your payments to be processed, get in touch with REMITR today.
