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Wire Transfers

What is a bank transfer?

Bank transfer is a non-cash form of payment for services. It consists in making a payment by one party (Payer) to the other party (Recipient). Transfer is carried out by facsimile, telegraph or electronic communication. The latter method is the most optimal and more secure at present. The essence of electronic communication is the electronic encryption of payment details.

Bank transfer system

S.W.I.F.T is considered to be the most widespread system of bank transfers today. Any money can be transferred through this channel, including international bank transfers.

In addition to S.W.I.F.T, there are several more systems. They differ by type of settlement currency and geography of action.

The speed of money transfer is just the time it takes to complete transactions on sending notifications of payment between banks. In this case, the face value is debited from the sender’s bank account and credited to the recipient’s bank account.

How long does a wire transfer take?

If you understand this question literally and also literally answer it, the correct answer is instantly. In another way, the speed of a bank transfer (in the sense that consumers are interested in it) depends on the speed of processing information in a particular banking institution.

In an electronic payment system, money is transferred literally in fractions of a second, and the transfer speed depends on the speed at which the operator enters the source data about the recipient of the funds.

In the system of relations between banks, the speed of bank transfer depends on several other processes, and more precisely on the time and quality of work of the so-called processing centers.

How do you make a bank transfer?

The most common way to make a bank transfer is to write off money from the sender’s account and credit it to the recipient’s account specified by him or her. The second, no less common way of transferring money consists in depositing cash by the sender directly to the banking institution from where the transfer is made, and also receiving cash by the recipient at the destination. Such operations are carried out on the application for a bank transfer, which is filled in by the sender of the money.

Financial institutions establish a fee for a bank transfer for the execution of payment processing operations. This is a small percentage of the amount of money transferred that goes to cover the bank’s expenses for the operation.

The amount of commission is often affected by the urgency of a bank transfer and the rate adopted in a particular electronic payment system.

Bank transfer details

Each client of the bank has its own unique data assigned by the Automated Banking System and is called the client’s details. In addition, upon registration with the bank, the bank itself receives personal identification data, which are also called the bank details. In order to send a bank transfer, the payer draws up a payment order.

This is a settlement document that allows the account holder (payer) to instruct the bank to transfer non-cash funds in favor of a client of another bank (the recipient). The payment order is accepted by the bank for unconditional execution and is trouble-free if the balance in the settlement account of the sending client allows the transaction. The executable document shall indicate in full all the details of the paying bank, the beneficiary bank and the paying customer and the receiving customer.

Requisites for filling include:

For the Bank:

It should be noted that in case of an incomplete or incorrect indication of any details, the bank reserves the right not to execute the payment until the payment details are correctly indicated.

How to find out about the receipt of a bank transfer to the account of the addressee?

As soon as the transfer document in the bank has become executed, it cannot be canceled. The payment goes to another account with the next bank flight. The execution time of dollar transfers is 2-4 working days.

Sometimes you need to understand if the money has arrived to the recipient. There is only one way to do this – wait 3 working days to ask the addressee to confirm the fact of receipt. It is useless to call the beneficiary’s bank, there they will not provide any information.

The bank is forbidden to disclose transactions on the account of its customers to third parties. If the transfer is lost, you need to write down the number of the payment order, date, amount and contact your bank branch. There you need to write a wanted application.

Inter-branch transfers

Inter-branch transfer means non-cash transfer of funds from one branch of the bank to another. At the same time, the transfer also bypasses the correspondent account. Unlike interbank transfers, it is fast because it uses internal branch accounts. To make these payments, the banks use internal accounts of obligations of the sending branch of the bank and accounts payable to the receiving branch of the bank.

Suppose you send an inter-branch transfer. According to the sender’s payment order, the bank writes off the amount to be sent from the sender’s account to the obligations account of the same branch of the bank. Further, from this account, the transfer is sent to the internal account for payment of another branch of the bank. The latter credits the transfer to the recipient’s account from the account for payment.

Transfers inside the bank – features and details

When the payer and the recipient have settlement accounts in the same branch of the bank, the time for crediting funds occurs instantly. In this case, funds are transferred directly from the payer’s account to the beneficiary’s account, bypassing the correspondent account, that is, the payment goes through the debit of the payer’s account and is reflected on the credit of the payee account.

Now, the banking system allows you to track all payments that go outside the correspondent account.