What are international bank transfers and how do they work?

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International bank transfers may differ from transfers conducted through money transfer companies in terms of convenience, speed, fees, and level of risk. So, what is an international bank transfer? This guide explores what an international bank transfer is, how it typically works, and some of the potential pros and cons.

How to make an international bank transfer

While the exact steps to make an international bank transfer may differ between banks, here is a general guide:¹

• Determine whether the bank supports international bank transfers.
• Carefully read the conditions and fees associated with a transfer. They may vary based on the currency, destination of the transfer, and the specific fees of the sending and receiving bank.
• If carrying out an international transfer in person at a bank, a valid form of ID may be required. If completing a transfer via a mobile app, individuals may have to verify their identity digitally.
• If the transfer involves more than one currency and the funds need to be converted into another currency, the bank will likely provide the exchange rate for this operation.
• Confirm the operation. Once the confirmation is received, the funds will typically be sent, and a notification should be received by both parties once the transfer is complete.

What details are needed for an international bank transfer?

The following details may be needed to carry out an international bank transfer:²

• Beneficiary's name and address
• Beneficiary's bank name and address
• Beneficiary's account number or International Bank Account Number (IBAN)
• Bank Identifier Code (BIC) or SWIFT code of the beneficiary's bank

The person making the transfer normally doesn’t need to provide these details for their own account.

International bank transfer fees and currency exchange rates

Banks may charge a fee for sending money internationally, which can apply to both outgoing and incoming international transfers. The fees can vary widely from bank to bank, so it's important to understand the associated costs.

Also, the sending bank or the intermediary bank may convert the money to the recipient's local currency at a foreign exchange rate. This exchange rate can fluctuate widely daily, so anyone making an international bank transfer should check the total combination of the exchange rate and bank fees that will be paid on top of the transfer.

How long do international bank transfers take?

The duration of international bank transfers varies but usually takes between one to five working days.³ This may vary depending on factors like the recipient’s country, time of initiation, and other internal bank-specific processes.

Potential pros and cons of international bank transfers

International bank transfers come with potential advantages and disadvantages. They typically concern speed, fees, and potential currency conversion charges.⁴

Potential pros of international bank transfers

Potential pros may include:

• Secure and regulated: Banks are generally regulated, making these transfers relatively secure.
• Large sums: International bank transfers may be suitable for transferring large amounts of money.⁵
• Global reach: Banks can typically send money to many countries around the world.

Potential cons of international bank transfers

Potential cons may include:

• Range of fees: Fees charged by banks for international transfers may vary depending on the countries and currencies involved.
• Delivery timeframe: Transfers can take several working days.
• Exchange rates: Banks may offer less competitive exchange rates and levy a conversion charge when sending money to a recipient in a different currency.

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