Monday, November 28, 2011

Basics of International Bank Transfers

Today, we cannot think of a life without banks. They have become part and parcel of our life. Today's new generation banks provide lot of useful services apart from just lending and saving of money. These developments along with development in technology have improved the banking sector along with its service across space and time.
Bank to bank transfers, whether national or international are becoming more and more popular among the layman due to the unparalleled safety and security that is being offered in such transfers. These transfers can be completed within a couple of hours generally. The transaction will be done only if the sender has enough funds in his account and once it reaches the bank at the receiving end, it will be cleared immediately and can be easily accessed. The banks at both the sending and receiving ends must have reciprocal accounts with each other or the transaction will have to be made to a corresponding bank which has a reciprocal account.
International Bank Transfers are not possible without the SWIFT or BIC code. You must be wondering what they are. SWIFT code stands for Society for Worldwide Interbank Financial Telecommunication also known as ISO 9362 or SWIFT BIC or even BIC code of SWIFT Id, which is the standard format of Bank Identifier Code. This is approved by the International Standard Organization (ISO). This code is an alpha - numeric code which uniquely represents a bank. This code is used for interbank transfers and other interbank communication.
How Does It Work?
Firstly, the sender has to approach the bank or whichever financial institution he wants to send the money from. The recipient's account number and the SWIFT code of that particular bank where the recipient has the account also should be given to make the transaction.
Then the bank at the sending end will send a secure message to the bank at the receiving end, requesting the payment according to the given instructions.
Generally, it takes only a few hours to for the transfer to be complete and the funds to reach their destination account. But at times, it might take a couple of days.
All the bank transfers collect payment for the service done by them from both the sender and the recipient. The bank at the sending end collect the free from the sender whereas the bank at the receiving end deducts the fee from the amount transferred, which means that the amount that the recipient receives will be lesser than what the sender had originally sent.

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