Swift payments and SWIFT codes go hand in hand and play a vital role in international bank transfers. SWIFT code is considered a type of bank code that helps to identify foreign banks, and from the branch of the bank, money is sent.
SWIFT code
The acronym SWIFT stands for Worldwide Interbank Financial Telecommunication Society. It is an eight to eleven-digit code used to represent a branch of a bank. Business Identifier Codes (BIC) is a standard format. It’s used to global identification of banks and financial institutions. It tells who they are and where they are. It is considered as an international bank code.
SWIFT codes are used when money is exchanged between banks, particularly for foreign wire transfers or SEPA payments. Banks also use those codes to exchange messages among themselves, to keep track of money.
Benefits of SWIFT code
SWIFT code is highly beneficial because of the following reasons:
- It makes your transaction ‘legal.’
- It secures your money
- It allows handling the large transaction
- It is a faster and better option
- It is available everywhere around the world
These are just to name a few. Companies use them to send payments to other companies without relieving their bank’s identity and many more. It has personal as well as collective benefits.
How to Find SWIFT code Of Your Bank Account: SWIFT code can be found on a bank’s website, on your bank statement, or through an online search. The easiest way is to call your bank and ask them directly. It helps to get rid of any confusion.
Swift Payment
Now that you know about SWIFT code, let us discuss what SWIFT Payment is?
Swift payment is a type of international transfer system in which money is sent using the SWIFT international payment network. It is also known as international wire.
TransferWise can transfer or receive other currencies through SWIFT payment. One of the biggest financial communications networks in the world is the SWIFT foreign payment network.
Transfer Fees for Swift Payment
Your bank is likely to charge you with some fees to transfer money. There might be a chance that the bank you are sending money to charge some fees for handling money as well. It is always better to talk with your bank regarding all the payments. If you transfer money through SWIFT, make sure that your bank handles all the charges associated with the transfer.
You should also check your bank’s history for handling money because it is not too rare to send the money in the wrong account.
Transfer Times For SWIFT Payment
SWIFT codes have revolutionized the way the money was handled before, and it only takes about 2 – 5 working days to transfer money to the recipient’s bank. Bank codes have made international transactions smarter and more diverse.
Swift can be used for any currency Euros, Pounds, etc., but it cannot be used for Canadian dollars (CAD)
Conclusion
Swift payment is speedy, legal, and secure. In case of any international transaction, a bank code like SWIFT code and bank identification code is essential.