- What is an international wire transfer?
- How does it work?
- How long does it take? Why?
What is an international wire transfer?
You may have heard this at some point in your life and ended up confused as I did the first time I saw that phrase. Well, at Crediverso we did our homework and we are here to tell you all about what is a “wire transfer”.
You are about to find out that it is not as tricky as it sounds. An international wire transfer is simply a payment method or, in other words, an electronic way to send money by wire.
How does it work?
All the magic happens through a network called SWIFT (Society for Worldwide Interbank Financial Telecommunications). This network allows the banks around the world to exchange information in a secure way. Basically, it is a messaging system for banks. This way, they keep your money and information safe.
How long does it take? Why?
Unfortunately, this wire transfer can take up from 1 to 5 days (yeah, I know it is not super fast). This delay may happen for some different reasons, such as:
- Fraud prevention: Banks have a lot of procedures to prevent possible frauds that end up delaying the transfer.
- Currency conversion: The recipient bank receives foreign currency and needs to convert, adding time to the process.
- Weekends and holidays: Banks still need people to process some information, so, if the bank is closed when the money is arriving, it cannot be processed.
- Difference between time zones: This is because maybe the recipient bank is out of its working hours, so, quick tip: try sending the money on the recipient’s working hours.
So now you know why sometimes when you send money to your friends and family in other countries it takes so long. If you liked the blog, share with your friends to spread the knowledge throughout the community.