Monday, November 28, 2011

International Bank Transfers Explained

An international bank transfer is a way to send money between two countries. These transfers can be done in several ways. One way is a wire transfer. To send a wire transfer the person does not need to have an account at the bank which is transferring the money. The application can be made at the foreign exchange counter of the bank. This is usually a very quick and efficient way to transfer money internationally and it should only take a few hours or a day to process.
A wire transfer is a bank to bank transfer and is the safest way to send money internationally as the person sending the funds and the one receiving it must show a proof of identity. This is then copied and kept in the banks records. When the money is transferred electronically, the information is also encrypted so nobody can intercept and steal personal information. The two banks providing the international service must have a reciprocal account with each other to be able to facilitate the transfer.
The fees charged when making an international bank transfer can be difficult to calculate as some are not very obvious. The main fee incurred is the fee charged for sending the money. This fee is paid at the bank when making the transfer and the amount charged will differ from bank to bank and country to country. The bank transferring the money also makes a profit on the exchange rate as it will send the funds in the foreign currency you request. The last fee is paid by the person receiving the funds and is paid when collecting the money from the bank. This fee will be subtracted from the amount received.
A system developed to transfer funds internationally between banks is called SWIFT. When you transfer money internationally you will be asked for the bank account number of the recipient as well as their SWIFT number. This information should be easily accessed from the person's bank or their bank statement. Other information the bank will require when making the transfer application is the recipient's address. You should have all information the bank requires ready before going to the bank to make the transfer.
International bank transfers are available from almost all banks. When transferring to an overseas bank account you will need to find a bank in your location which has a reciprocal account with the overseas bank. Make sure you have all the account and address information of the person the transfer is being sent to before you go to the bank. The application is quite simple if you have everything ready before hand, and should only take a few minutes.

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