How to Make an International Bank Transfer

Quick answer

• Determine the recipient’s full name, address, bank name, and account number.
• Obtain the bank’s SWIFT/BIC code and any intermediary bank details.
• Compare fees and exchange rates from your bank, online money transfer services, and wire transfer specialists.
• Understand transfer limits and processing times, which can vary significantly.
• Have sufficient funds in your account to cover the transfer amount and all associated fees.
• Double-check all recipient and bank details before confirming the transfer to avoid errors.

Who this is for

• Individuals needing to send money to family or friends abroad.
• Businesses making payments to international suppliers or contractors.
• Anyone receiving funds from an international source who needs to understand the process.

What to check first (before you act)

Goal and timeline

Before initiating any international bank transfer, clarify why you’re sending money and when it needs to arrive. Are you paying for a one-time purchase, sending a recurring payment, or helping a loved one? Knowing your timeline will help you choose the most suitable transfer method, as some are faster but more expensive than others.

Current cash flow

Ensure you have enough readily available funds to cover the principal amount you wish to send, plus all potential fees. Unexpected charges can add up, so it’s wise to have a buffer. Review your recent bank statements and upcoming expenses to confirm your account balance can accommodate the transfer without causing financial strain.

Emergency fund or safety buffer

Having an emergency fund is crucial. If an unexpected expense arises, you won’t need to dip into the funds you’ve allocated for an international transfer. Ideally, your emergency fund should cover 3-6 months of living expenses.

Debt and interest rates

If you have high-interest debt, consider prioritizing paying that down before making non-essential international transfers. The interest you pay on debt can often outweigh any potential gains or savings from finding a slightly cheaper transfer method. Check the interest rates on your credit cards, personal loans, and other debts.

Credit impact

While making a standard international bank transfer typically won’t directly impact your credit score, mismanagement can. For example, if you overdraw your account to fund a transfer, this could lead to overdraft fees and potentially be reported to credit bureaus. Ensure you have a clear understanding of your bank’s policies regarding account balances.

Step-by-step (simple workflow)

1. Gather Recipient Information: Collect the recipient’s full legal name, physical address, bank name, and their full bank account number.

• What “good” looks like: All details are accurate, complete, and match official records.
• Common mistake: Incomplete or misspelled names/addresses.
• How to avoid it: Ask the recipient to provide details directly from a bank statement or official document.

2. Obtain Bank Identifiers: Find the recipient’s bank’s SWIFT code (also known as BIC – Bank Identifier Code). You may also need details for any intermediary banks involved in the transfer.

• What “good” looks like: The correct SWIFT/BIC code for the recipient’s bank.
• Common mistake: Using an incorrect or outdated SWIFT/BIC code.
• How to avoid it: Ask the recipient’s bank directly or use a reputable online SWIFT code lookup tool, confirming with the recipient if possible.

3. Determine Transfer Amount and Currency: Decide the exact amount you want to send and in which currency.

• What “good” looks like: A clear understanding of the principal amount and target currency.
• Common mistake: Not accounting for currency fluctuations or the recipient receiving a different amount than intended due to exchange rate changes.
• How to avoid it: Lock in an exchange rate if possible or send a slightly higher amount to account for potential shifts.

4. Research Transfer Methods and Providers: Compare fees and exchange rates from your bank, online money transfer services, and specialized wire transfer companies.

• What “good” looks like: You’ve identified a provider offering competitive rates and transparent fees for your specific transfer.
• Common mistake: Automatically using your own bank without checking other options.
• How to avoid it: Dedicate time to compare at least 2-3 different providers.

5. Check Transfer Limits and Processing Times: Understand the minimum and maximum amounts you can send and how long the transfer is expected to take.

• What “good” looks like: You know the transfer will meet your recipient’s needs and timeline.
• Common mistake: Exceeding daily or per-transaction limits, or the transfer arriving too late.
• How to avoid it: Clarify these details with your chosen provider before initiating.

6. Initiate the Transfer: Log in to your bank’s online portal, use a money transfer app, or visit a branch to start the process.

• What “good” looks like: The transfer is successfully initiated with all correct details entered.
• Common mistake: Entering incorrect information during the online or in-person submission.
• How to avoid it: Review every field carefully before submitting.

7. Confirm and Track: After initiating, you should receive a confirmation, often with a reference number.

• What “good” looks like: You have a confirmation and tracking number.
• Common mistake: Not saving or noting down the confirmation or tracking details.
• How to avoid it: Take a screenshot or write down the reference number immediately.

8. Notify the Recipient: Inform the recipient that the transfer has been sent, providing them with the reference number and expected arrival time.

• What “good” looks like: The recipient is aware and can monitor their account.
• Common mistake: Assuming the recipient will automatically know or check their account.
• How to avoid it: Send a follow-up message or email.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Incorrect recipient account number	Funds may be delayed, returned, or sent to the wrong person, incurring additional fees for correction or retrieval.	Verify the account number multiple times with the recipient. If sent incorrectly, contact your bank immediately to initiate a recall, though success is not guaranteed.
Wrong SWIFT/BIC code	The transfer will likely be rejected by the recipient’s bank or sent to an intermediary bank and delayed.	Double-check the SWIFT/BIC code with the recipient and use official lookup tools. If rejected, you’ll need to resubmit with the correct code, incurring potential fees.
Misspelled recipient name or address	Banks may reject the transfer due to a mismatch in identity verification, causing delays and potential fees.	Ensure the recipient’s name and address are spelled exactly as they appear on their official identification or bank documents.
Not comparing transfer fees	You end up paying more than necessary due to higher fees or less favorable exchange rates.	Always compare fees and exchange rates from multiple providers (your bank, online services, wire transfer specialists) before sending.
Ignoring exchange rate fluctuations	The recipient may receive less money than intended due to unfavorable currency conversion.	Monitor exchange rates. Consider using services that offer rate-locking features or send a slightly larger amount to buffer against unfavorable movements.
Not understanding transfer limits	Your transfer may be rejected or split into multiple transactions, incurring additional fees.	Check the sender and receiver limits of your chosen provider before initiating the transfer.
Failure to track the transfer	You won’t know if the money has arrived or if there are any issues, leading to potential disputes.	Save the transaction reference number and use the provider’s tracking tool. Follow up with the recipient to confirm receipt.
Sending too little to cover fees	The recipient might receive less than expected, or the transfer could be rejected if fees aren’t covered.	Always factor in all known fees (sender, intermediary, receiver) when calculating the total amount to send. It’s often better to overestimate slightly.
Not verifying the recipient’s bank details	The transfer may be rejected or delayed if the recipient’s bank is not correctly identified.	Confirm the recipient’s bank name and location directly with them or by referencing their bank statement.
Using an outdated method	Slower processing times, higher fees, and less convenient user experience compared to modern options.	Research current money transfer services that offer faster speeds, lower costs, and better online/mobile platforms.

Decision rules (simple if/then)

• If the amount is small and the timeline is flexible, then consider using a money transfer app because they often have lower fees and better exchange rates for smaller sums.
• If the amount is large and speed is critical, then check your bank’s wire transfer service or a specialized international money transfer provider because they are typically faster and handle larger sums, though potentially at a higher cost.
• If you are sending money regularly to the same recipient, then research providers that offer discounts for recurring transfers because this can save you money over time.
• If the recipient’s bank requires an IBAN (International Bank Account Number), then ensure you obtain this specific format, as it’s common in many European countries and replaces the traditional account number and SWIFT/BIC for some transactions.
• If you are unsure about the recipient’s bank details, then ask them to send you a copy of their bank statement (with sensitive information redacted) because this will provide all necessary information accurately.
• If the exchange rate offered by your bank seems unfavorable, then look for online money transfer services because they often provide more competitive rates due to lower overhead.
• If you need the money to arrive on a specific date, then confirm the estimated delivery time with the provider and add a buffer of at least one business day because unforeseen delays can occur.
• If you are sending money to a country with currency controls or specific regulations, then research these rules beforehand because non-compliance can lead to rejection or penalties.
• If the transfer amount is significant, then consider using a service that offers rate-locking or guarantees the exchange rate at the time of booking because this protects you from currency market volatility.
• If you are sending money for a business transaction, then ensure you have all necessary documentation and comply with any reporting requirements because business transfers often have different regulations than personal ones.
• If you receive an unexpected request for an international bank transfer, then be highly suspicious and verify the request through a separate communication channel because this could be a scam.

FAQ

What is a SWIFT/BIC code?

A SWIFT (Society for Worldwide Interbank Financial Telecommunication) code, also known as a BIC (Bank Identifier Code), is an international code that identifies a specific bank. It’s like an address for banks globally, essential for routing international wire transfers correctly.

How long does an international bank transfer take?

Processing times can vary widely, typically ranging from 1 to 5 business days. Factors like the countries involved, the banks used, and the time of day the transfer is initiated can affect the speed.

Are there limits on how much money I can send internationally?

Yes, most banks and money transfer services have daily, weekly, or per-transaction limits. These limits can differ based on your account type, the provider, and the destination country. Check with your provider for specific details.

What fees are involved in an international bank transfer?

Fees can include a sending fee from your bank or provider, potential fees from intermediary banks, and sometimes a receiving fee charged by the recipient’s bank. Exchange rate markups also represent a cost.

Can I track my international bank transfer?

Yes, most legitimate international money transfer services provide a tracking number or a link to monitor the status of your transfer online. It’s always a good idea to keep this reference number handy.

What’s the difference between a wire transfer and an online money transfer service?

Wire transfers are typically handled directly by banks and are often faster and more secure for large amounts, but usually come with higher fees. Online money transfer services are often more affordable, especially for smaller amounts, and offer more competitive exchange rates, but may take slightly longer.

What happens if I enter the wrong bank details?

If you provide incorrect recipient details, the transfer may be delayed, returned to you (often with fees), or sent to the wrong account. It’s crucial to double-check all information before submitting.

How do I ensure the best exchange rate?

Compare exchange rates from your bank against those offered by specialized online money transfer services. Some services offer better rates than traditional banks, especially for larger sums or if you can lock in a rate.

What this page does NOT cover (and where to go next)

• Specific regulations for sending money to particular countries (e.g., sanctions lists, reporting requirements). Research the financial regulations of your destination country.
• Legal advice on international business transactions or tax implications of sending/receiving funds. Consult a legal or tax professional.
• Detailed comparisons of every available money transfer service. Conduct your own research based on your specific needs.
• Options for sending physical currency or checks internationally. Explore postal services or courier companies for these methods.
• Cryptocurrency transfers. If interested, research the specific platforms and risks associated with digital assets.