You may need to send money overseas today, tomorrow, or anytime for various reasons such as, purchasing a vacation property, sending a one-time payment to a loved one overseas, or routinely transferring your pension due to relocation.
Therefore, an international wire transfer could be your best option for an overseas money transfer.
What is an International Wire Transfer?
An international wire transfer is an electronic money transfer between a sender and a recipient in different countries. They function similarly to domestic wire transfers if you’re familiar with them.
An electronic transfer between national or international banks is called a wire transfer. In the past, banks used telegraph wires to communicate, and that’s why it is called wire transfer. Although wire transfers internationally have undergone modernization, not much has changed. Banks that are part of the wire transfer network can get in touch with one another quickly to verify that the recipient of the payment truly has the money. This assurance provides peace of mind to the recipient, knowing that their money is secure.
How International wire transfers work
The international wire transfer needs some paperwork and functions similarly to a regular bank transfer. Let’s understand how to do international wire transfers.
Step 1: Submitting Sender Request for International Wire Transfer
The first step is that the sender will submit a request for an international wire transfer, and depending on your bank, you can do this online, by visiting the branch, over a phone call, or by faxing a form. Your bank may limit the maximum amount of money you can send in a single transfer. If you can provide proof of your need for a higher limit and have a history of accounts, most banks will increase this limit. The purpose of the limit is to stop fraudulent activities.
Step 2: Pay a wire transfer fee
There is a wire transfer fee that you must pay. Additional currency conversion costs might be incurred if you convert your cash into foreign currency. A confirmation that you can send it to the recipient will be sent to you.
Normally, your recipient’s bank will release the funds to them as soon as it receives them. Banks may have different policies regarding the availability of funds.
Step 3: Using Wire Transfer Services
You can use wire transfer services like Western Union or Cheqly banking services in addition to a bank wire transfer. An international wire transfer typically requires upfront payment with a debit card or your bank balance. Most money transfer services do not accept credit cards, and instead, if they do, it is likely that the charges in the form of cash advance fees and interest on your credit card shall apply.
How to do international wire transfers?
Here are the steps to follow that can help you perform an international wire transfer:
1. Choosing your money transfer provider
A multitude of banks and special services provide wire transfer services. The majority of these services are offered online. Regardless of your provider, you can access your dashboard or visit their website to choose the wire transfer option.
2. Get the details properly
The following details are required to send money internationally:
- The number of your bank account
- The recipient’s name
- The recipient’s address and bank name
- The bank account number of the recipient
- SWIFT code of the recipient bank
- Any additional data needed for wire transfers that your service provider requests
3. Choose the currency correctly
You must complete a form after you have all the information required to make the wire transfer available. You can complete this step online or offline, depending on your transfer service provider. In most cases, the home currency is displayed automatically when you enter the recipient’s bank details, but you always have the option to select it manually. You must pay the international wire fee after completing the form.
4. Paying the Transfer fee
While you are performing the money transfer, there are fees associated with international wire transfers. While most providers do not impose any remittance fees, there is always a flat foreign exchange charge. However, there may occasionally be a flat fee.
A remittance fee must be paid if a bank acts as an intermediary in the foreign money transfer. You will also be required to pay a service tax on the transfer of funds, which will vary based on the amount transferred.
5. Track it Properly
Keep the receipt with you after the foreign transfer process is finished. International Wire transfers typically take 24 to 48 hours. The status of the foreign money transfer is easy to follow, and the process is considered finished when the funds are successfully transferred to the intended recipient. Sending money abroad is typically accomplished through wire transfers.
What are the costs associated with international wire transfer fees?
Forwarding an international wire transfer by any bank might become pretty expensive. The cost of such a wire transfer usually lies in the channel through which you are sending the money. All banks and international money transfer service providers have different structures, and all the institutions charge different margins on the daily exchange rate. Based on the size of your transfer, you would be able to save a significant amount by comparing prices in different institutions.
In addition, when customers convert currencies, banks mark their prices higher than the mid-market rate. Banks typically charge this as a percentage of the entire wire transfer amount. Customers using non-bank transfer services, where certain companies charge the going rate, can save money by avoiding these costly markups.
How long do international bank transfers take?
Any domestic transfer is finished in one or two days. However, the timeframe for international money transfers, whether conducted online or offline, can vary significantly. Online processing is generally faster than offline processing for both domestic and international transfers. The bank only performs wire transfers within a certain time and on business days. Inquiring about the anticipated transfer duration from the non-bank institution or your bank is advisable. The SWIFT network processes all instructions for wire transfers. Up to three intermediary banks may be involved in the wire transfer process. It eventually reaches the recipient’s account after this. Therefore, money transfers for business purposes abroad may take up to five working days.
International Wire Transfers Made Easy with Cheqly!
Cheqly offers a secure platform for transferring money internationally. Whether you need to send or receive funds across borders, Cheqly is here to assist you. We prioritize excellent customer service, providing transparent pricing with no hidden fees.
If you are in search of an international wire transfer solution, Cheqly can help you save time and money while making it simple and easy. Stop waiting; Sign up for a Cheqly account today and begin using it.