It is impossible to imagine the life of a modern person without the possibility of sending money transfers almost anywhere in the world. The development of technology makes it possible to send money "tidings" literally without getting up from the couch thanks to mobile applications and other bank services.
However, instant transfers are not always convenient or profitable. In this case, you can use SWIFT transfer. You can use it to send money to any corner of the world, pay for study abroad or hotel accommodation, as well as medical treatment and other services.
What is the meaning of SWIFT?
The unified SWIFT system was developed for convenient interbank, including cross-border transactions. It unified the processes of money transfers and information transmission and introduced common rules for all participants of the global financial market.
Due to the standardization and simplification of SWIFT operations, SWIFT payments are fast and relatively inexpensive for senders. They can be made between any foreign banks that support SWIFT standards. Currently, the system is used in more than 200 countries, with more than 10 thousand financial institutions participating in it.
What you need for a SWIFT money transfer
Companies, brokers, stock exchanges, and individuals transfer money via SWIFT. You can send and receive money in any currency.
When making a transfer, it is necessary to correctly specify the details of the intermediary banks involved in the transaction.
- SWIFT code of the bank where it is planned to receive funds;
- Full name of the recipient of funds (individual) or full name of the legal entity;
- 16-digit account number of the recipient (IBAN format);
- Name of the bank branch where the money will be received;
- Details of intermediary banking institutions.
Today you can get all the benefits of SWIFT in one account online and in just a couple of clicks. Transferra allows you to send and receive money without restrictions, track transactions and control the movement of funds without problems. This system can be used to organize payments, work with partners, etc.
What is the benefit?
SWIFT system offers the most optimal tariffs, which favorably distinguish it from other operators providing financial services. Since there are no fixed rates in the system, the total amount is made up of commission fees, which are set by the participating banks themselves.
The system provides guarantees that your transfer will reach the addressee, and in case of technical errors or failures - will compensate all losses.
Also, SWIFT practically does not limit you in the amount of transfer, unlike other international systems (except for those provided by the legislation of a particular state). Experts advise to use of SWIFT transfers in cases where the minimum payment is less than the amount of the commission fee.
Another undeniable convenience is a wide territorial coverage - SWIFT works wherever there is a branch of any bank.
Key advantages
One of the key advantages of SWIFT is the high speed of message transmission. With the introduction of common standards, the speed of interbank communications has significantly increased. An urgent payment order is transmitted in about 5 minutes. Many operations are automated: automatic numbering and transmission of messages, and automatic verification of data on the recipient's side.
Joining the global system increases the bank's competitiveness. Due to inclusion in the international payment turnover, a financial organization expands its opportunities and attracts additional users.
SWIFT is a multi-level data protection against falsifications, losses, and various risks. It includes physical access control in computing centers and hubs, coding of communication lines, and means of internal security. All participants in the exchange of messages have responsibilities defined by common agreements, which simplifies the resolution of possible disputes.
Participation in SWIFT provides banks with opportunities to streamline their processes, namely to eliminate manual processing, improve control, and speed up the placement of funds on accounts. However, this may require significant reorganization of labor.
Potential disadvantages
Working in the system can be challenging for smaller organizations that have to rebuild internal processes, adjust to high demands, and deal with technical issues. For smaller players, there are burdensome costs.
Since the processing time is shorter, the bank has fewer opportunities to utilize payment credit.
The disadvantages of money transfers through the SWIFT system can also include a relatively protracted stage of receiving money. The more remote the branch of the bank of both the sender and the recipient, the slower the transfer will reach the addressee. In different countries, the time may vary from one day to a week.
Therefore, try to choose large financial institutions as the sending and receiving bank - in this case the transaction may take only a few hours.
