Transferring money internationally between banks has become seamless and efficient, thanks to advancements in digital banking and global payment networks. Whether you’re supporting family abroad, paying for overseas education, or purchasing property, transferring money between banks across borders is now faster and more accessible than ever.
This guide provides a step-by-step process to transfer money internationally between banks, compares popular transfer methods, and highlights the best digital services to ensure secure and cost-effective transactions.
Table of contents
- What is an International Money Transfer?
- How Does the SWIFT Network Facilitate International Transfers?
- Step-by-Step Guide to Transferring Money Internationally
- Common Reasons for International Money Transfers
- Comparison of International Money Transfer Methods
- Pros and Cons of International Bank Transfers
- Documentation Required for International Bank Transfers
- Best Digital Transfer Services in 2025
- FAQs on International Bank Transfer
What is an International Money Transfer?
An international money transfer between banks involves electronically sending money from one bank account to another in a different country. These transactions typically rely on intermediary banks and global networks to facilitate secure and reliable transfers.
Understanding how to transfer money internationally between banks can help you choose the most efficient method for your needs.
Key Features of International Money Transfers
International money transfers between banks are designed to be secure and efficient, but they vary in speed, cost, and convenience. Here are the main features:
- Global Reach: Connects banks in over 200 countries through networks like SWIFT.
- Secure Transactions: Encrypted systems ensure your funds are protected.
- Multiple Methods: Options include wire transfers, online platforms, and money orders.
Also Read: FAQs on International Wire Transfer
How Does the SWIFT Network Facilitate International Transfers?
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the backbone of most international bank transfers. The SWIFT wire transfer network connects over 11,000 financial institutions across 200+ countries, enabling secure and standardized communication for cross-border payments.
How SWIFT Works
SWIFT assigns unique codes (SWIFT/BIC) to banks, ensuring accurate routing of funds. When you initiate a transfer, the sender’s bank communicates with intermediary banks, which then forward the funds to the recipient’s bank. This process ensures reliability but may involve multiple intermediaries, affecting fees and transfer times.
Fun Fact: In 2024, SWIFT processed over 11.7 billion messages, facilitating trillions of dollars in global transactions annually.
Step-by-Step Guide to Transferring Money Internationally
Transferring money internationally between banks is straightforward when you follow the right steps. We have outlined all the essential details and highlighted common pitfalls to avoid. Here’s how to make a smooth international bank transfer:
- Choose the Right Transfer Method
Select a transfer method based on speed, cost, and convenience. Options include:- Wire Transfers: Fast but often expensive due to bank fees.
- Online Platforms: Services like Wise or PayPal offer lower fees and competitive exchange rates.
- International Money Orders: Suitable for smaller amounts, but slower.
- Gather Recipient Information
Accurate details are critical to avoid delays. You’ll need:- Recipient’s full name and address.
- Bank name, account number, and SWIFT/BIC code (or IBAN for European banks).
- Confirm details with the recipient to prevent errors.
- Check Exchange Rates
Exchange rates fluctuate daily and impact the amount received. Use tools like XE.com or check with your bank for real-time rates. Avoid transferring during volatile market periods to secure better rates. - Understand Transfer Fees
International money transfer fees between banks vary depending on the bank, the method of transfer, and the destination country. For example:- Bank wire transfers: USD 10–USD 50 (sender) + USD 10–USD 30 (recipient).
- Online platforms: Often 0.5–2% of the transfer amount. Always compare fees to minimize costs.
- Initiate the Transfer
Visit your bank’s online portal, mobile app, or branch to start the transfer. Double-check all details before submission to avoid costly corrections. - Track the Transfer
Most banks and services provide a reference number to monitor the transfer’s progress. Expect delivery within 1–5 business days, depending on the method and destination.
Common Reasons for International Money Transfers
People transfer money internationally between banks for various personal and business reasons. Understanding these scenarios can help you choose the right method for your needs.
- Supporting Family Abroad: Send regular or one-time payments to relatives in another country.
- Paying for Education: Cover tuition or living expenses for students studying overseas.
- Purchasing Property: Transfer large sums for real estate or mortgage payments.
- Destination Weddings: Pay vendors or services for events held abroad.
- Travel Expenses: Fund international trips or cover unexpected costs while traveling.
Also Read: What is Domestic Wire Transfer?
Comparison of International Money Transfer Methods
Choosing the right overseas money transfer method depends on your priorities, i.e, speed, cost, or coverage. Below is a comparison of three popular options: bank wire transfers, PayPal, and Western Union.
| Method | Cost | Exchange Rate | Coverage | Transfer Speed | Key Features |
|---|---|---|---|---|---|
| Bank Wire | USD 10–USD 50 (varies by bank) | Mid-market rate + markup | 80+ countries, 50+ currencies | 1–5 days | Fast, secure, ideal for large sums |
| PayPal | 0.99–4.99% of the transfer amount | Mid-market rate + 4% markup | 200+ countries, verified accounts | Instant–2 days | Instant transfers to PayPal accounts |
| Western Union | Varies by amount and destination | Mid-market rate + variable markup | 200+ countries | Instant–3 days | Cash pickup, mobile payments |
Pros and Cons of International Bank Transfers
Understanding the drawbacks and benefits of wire transfer helps you make informed decisions. Let’s first start with the pros of international wire transfer between banks:
Pros
- Speed: Many transfers complete within 1–3 days, with some platforms offering instant options.
- Accessibility: Recipients can access funds via bank accounts or cash pickup (e.g., Western Union).
- Cost-Effective Options: Digital platforms like Wise or Remitly often have lower fees than traditional banks.
Cons
- Fees: Both sender and recipient may incur charges, including intermediary bank fees.
- Exchange Rate Markups: Banks and services often add a margin to the mid-market rate.
- Complexity for Large Sums: Additional documentation may be required for high-value transfers.
Documentation Required for International Bank Transfers
To ensure a smooth international wire transfer between banks, prepare the following documents. Requirements may vary by bank or country, so confirm with your provider.
- Recipient’s full name and address.
- Bank name, account number, and SWIFT/BIC code (or IBAN for European banks).
- Purpose of the transfer (e.g., personal, business, or property purchase).
- Proof of identity (e.g., passport or driver’s license) for large transfers or regulatory compliance.
Best Digital Transfer Services in 2025
Digital platforms often provide faster and cheaper alternatives to traditional bank transfers. Here are the top services for international money transfers:
- Wise (formerly TransferWise): Offers mid-market exchange rates with low, transparent fees.
- Remitly: Ideal for fast transfers to developing countries with cash pickup options.
- PayPal: Best for instant transfers to verified accounts, though fees can be high.
- Western Union: Extensive global network with cash pickup and mobile payment options.
- Revolut: Competitive rates and multi-currency accounts for frequent transfers.
- MoneyGram: Reliable for urgent transfers with widespread agent locations.
- WorldRemit: Affordable for smaller transfers with mobile wallet support.
- OFX: Specializes in large transfers with dedicated customer support.
Also Read: Difference between EFT and Bank Wire Transfer
Transferring money internationally between banks is now more accessible than ever, with options ranging from traditional wire transfers to innovative digital platforms. By choosing the right method, verifying recipient details, and comparing fees and exchange rates, you can ensure a secure and cost-effective transfer.
FAQs on International Bank Transfer
For transferring money internationally between banks, you’ll need the recipient’s full name, bank name, account number, and SWIFT/BIC code (or IBAN). Always verify details to avoid delays.
Transferring money internationally between banks typically takes 1–5 business days, depending on the method, destination, and intermediary banks involved.
The international bank transfer fees range from USD 10–USD 50 for bank wires or 0.5–5% for digital platforms. Compare providers to find the most cost-effective option.
Top methods to transfer money internationally include:
– Online platforms (e.g., Wise, PayPal).
– Bank wire transfers.
– International money orders (for smaller amounts).
– Cashier’s checks (less common).
To ensure your international bank transfer is secure, use trusted providers, verify recipient details, and track the transfer using the reference number provided.
To learn more about bank accounts for students, the best education loans, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
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