How to Transfer Money Internationally Between Banks?

Transferring Money Internationally between banks now becomes an easy process, with the help of several payment modes and transfer modes we can transfer money internationally with ease and comfort and International wire transfers are a convenient way to send and receive money internationally. If you have a family member, friends, or any connection abroad you can transfer and receive money with the help of the digital transfer method there, are various methods to transfer money internationally between banks for more information read this article.

What is an International Money Transfer?

An international wire transfer is a method of electronically transferring money internationally between bank accounts located in different countries. This type of transaction involves sending money from one bank account to another via a network of correspondent banks acting as intermediaries between the sender and receiver’s banks. 

Which Method is Used for International Money Transfers?

The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, the network is the most popular method of wire transfer. A messaging protocol is the SWIFT network. The network includes approximately 11,000 banks in more than 200 countries. Information is sent between banks using this network.

Steps to Make an International Money Transfer

Here are the steps to transferring money internationally between banks:

  • Choose the right transfer method: There are several methods to transferring money internationally between banks, such as wire transfer, online transfer, and international money order. Choose the one that suits you best based on the fees, speed, and convenience.
  • Get recipient information: You will need the recipient’s full name, bank account number, bank name, and SWIFT/BIC code (for international transfers) or routing number (for domestic transfers). It’s essential to confirm the details with the recipient and ensure that the information is accurate.
  • Check exchange rates: Before transferring the money, check the exchange rate between the currencies. This will help you calculate the amount that will be received by the recipient in their currency.
  • Pay the transfer fees: Banks charge fees for international money transfers, which vary depending on the transfer method, bank, and country. Make sure you know the fees upfront and factor them into the total cost of the transfer.
  • Initiate the transfer: Depending on the method chosen, you may need to visit your bank or complete the transfer online. Provide the necessary information and double-check it before submitting the transfer.
  • Track the transfer: Once the transfer is initiated, you’ll receive a reference number that you can use to track the transfer. Keep an eye on the transfer status to ensure that it reaches the recipient on time.

Also, Read- Things to Consider When Transferring Money Abroad

Reasons to Send Money Internationally 

There are several reasons to send money internationally, here are a few of the reasons mentioned for transferring money internationally between banks.

  • Sending money to friends and family – If you were born, spent your formative years, and are currently residing in a different nation, your family may still be dependent on your salary. You need a solution to send money securely whether you frequently send money home or perhaps occasionally.
  • Purchasing real estate overseas – Purchasing real estate, a family residence, or a second house necessitates the transfer of a sizable sum of money from abroad to cover the cost of the property and the mortgage (if there is one).
  • Money sent to children studying abroad – The option for students to study abroad is fantastic, but it can be pricey. Parents may need to send money abroad if they need to augment their finances or if students run out of money.
  • Paying for a destination wedding – If you or your child is being married abroad, you must transfer money in advance to cover the costs of the services.
  • Paying for international travel – International travel can be exciting and interesting, but it can also be expensive. You need to send money abroad if you run out of money while on holiday or if you need to transfer money to pay for services in advance.

Comparison of Payment Process

Comparison table of the payment process of wire, PayPal, and western union, here are some highlights 

Wire Pay pal Western Union 
Cost Depending on the payment amount fee can vary by 5% of payment value from $0.99 to $4.99Fee varied based on payment details 
Exchange Rate Mid-market exchange rate 4% + mid-market exchange rate Mid-market exchange rate + variable markup 
Coverage Limits around INR 101 or equivalent INR 8,21,825 for the verified account Varied by payment type 
Limits from USD 80+ countries 50+ currencies More or less global More or less global 
Features Fast transaction and low fees, Mid-market exchange rate Send money to your PayPal account instantly Good range of payment options including cash collection 

Also, Read – Best International Money Transfer Apps in 2023

Pros and Cons 

Here are some Pros and Cons of transferring money internationally between banks  

Pros Cons 
Processing transactions immediately plus if you’re doing business with partners in nations with weak banking systems credit cards may be practical. Easy access for the receiver fast and Cost-effectiveFor each transaction, a charge is paid by the sender and the recipient. The recipient pays an extra ATM fee. Typically, credit card fees are exorbitantly expensive. You might not get the most favorable exchange rate. Fewer resources available when handling increasing amounts

Documentation Needed to Make an International Money Transfer

What exactly need during the process of making an international wire transfer, some documents can vary from bank to bank services, here are the documents which is required in the process of transferring money internationally between banks.

  • Full name of your recipient and address of the bank that your receiver uses
  • Financial information about your recipient, including bank name 
  • account number
  • Information about the payment, including the requisite currency
  • Name and address of your intended recipient
  • Your recipient’s IBAN or account number
  • The BIC/SWIFT code for the beneficiary

Best Digital Transfer Services Modes to Transfer Money Internationally?

These are the best digital transfers services that help us transferring money internationally between banks

  • Remitly
  • Ria
  • Western Union
  • PayPal
  • OFX
  • Xoom
  • MoneyGram
  • WorldRemit

Also, Read- Best Ways to Use Credit Cards for College Students

FAQs 

Q1. What information do I need to provide to transfer money internationally between banks?

Ans. You will need to provide the recipient’s full name, bank account number, bank name, and SWIFT/BIC code (for international transfers) or routing number (for domestic transfers).

Q2. How long does it take to transfer money internationally between banks?

Ans. The time it takes to transfer money internationally between banks can vary depending on the transfer method, the country of the recipient, and the bank’s processing times. It can take anywhere from a few hours to several days.

Q3. What are the fees for transferring money internationally between banks?

Ans. Banks charge fees for international money transfers, which can vary depending on the transfer method, bank, and country. It’s essential to know the fees upfront and factor them into the total cost of the transfer.

Q4. What are the best ways to transfer money Internationally 

Ans. Best ways to transfer money internationally
Bank Drafts and Cashier’s Checks.
International Money Order/ Offline Money Transfer.
Online Money Transfer.
Online Wire Transfer.

This was all about How to Transfer Money internationally Between Banks, hope this article gives you insight into the process of money transfer internationally. If you are interested in studying abroad and want to admit to top-notch university contact Leverage Edu for full assistance 

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