Being a global/international businessman, sending & receiving money/funds overseas is the daily job you execute frequently. This is the point when you need to open/maintain a bank account overseas for not only receiving money from clients abroad but also making payments to them. These types of overseas transactions where you send or receive money from one bank to another online are known as wire transfers and here SWIFT codes play a vital role.
Swift codes are used & essential for electronic fund transfer between different banks. So, if you are wondering how to send a wire transfer or transfer money via swift codes, you are in the right place. Here we are explaining what are swift codes and how to make a wire transfer. Let’s have a look:
SWIFT wire transfer stands for Society for Worldwide Interbank Financial Telecommunication - a fast way of transferring money from one bank to another overseas bank where you ie. the sender needs to provide the beneficiary’s details to the respective bank along with the SWIFT codes in the form. Once you do it, the described amount will be debited from your account and credited to the desired ie. beneficiary’s account in a.
SWIFT Codes are a unique combination of different types of letters that are used by banks or financial institutions to identify the branch codes of a particular bank the particular transaction is being initiated with. These codes are also known as Bank Identifier Codes (BIC) and play a very important role in executing several bank transactions especially when it comes to making an international SWIFT wire transfer.
* The next two characters describe country code
* Further next two characters can be a combination of both numbers & letters denoting location-based codes.
* The last three characters are optional and provide information about the branch code.
2. How do I find a SWIFT code?
* Whether you are looking for your bank’s swift codes or someone else you are sending money to, you can either simply check your bank statements or can log-in to your bank account and know the codes.
3. Various online websites are designed to help you find a particular bank’s swift code.
To make a wire transfer to another country/bank via Swift codes, you are required to follow the below-mentioned steps. Here they are as follows:
1. Find a Bank - The first & foremost step towards making an international SWIFT wire transfer is to find a bank or FI offering international payment transfer services. Make sure that you have an account and sufficient funds.
2. Log-in To Your Online Bank Account - These wire transfers take place online. So you need to go to the official website of your bank and log-in to it by entering your username and password. In case you don’t have internet banking, you may need to visit your bank’s branch.
3. Look For A Wire Transfer Option - After getting logged-in to your bank’s website, you need to search for an online wire transfer option on the website. If there is not any, you can look for the wire transfer section on the top of your bank’s website. You can also call your bank’s customer care service for more information.
4. Be Aware of Fees - Some banks and FIs charge wire transfer fees. So you better check them out before making a transaction. There can be a foreign currency conversion charge. You may also need to pay service tax on the amount transferred.
5. Enter Wire Transfer Limit - Some banks which are offering international transactional services specify a particular limit that an individual can transfer via wire methods. If a transfer is above the permitted limit, you need to get it approved by your bank.
6. Submit Recipient’s Information - To complete an international SWIFT wire transfer, you are required to provide all the essential information of the beneficiary to the bank.
- It includes the full name & address of the recipient’s bank.
- Name, address, and account type
- Recipient’s account number as well as SWIFT/BIC Codes. Your bank will need these codes to identify the bank they are transferring your money to.
7. Follow-up - You need to keep the receipt after completing the swift wire transfer and make sure that you have submitted all information correctly.
SWIFT wire transfers make it easier to send and receive money overseas from one bank to another by sitting in the comfort of home. Apart from SWIFT codes, you can also avail of various online money transfer services such as PayPal, etc.