International Wire Transfers
The
most expedient method for transferring
funds is remittance by wire transfer. As
with a mail payment order, a wire
transfer is a message to the receiving
bank requesting them to effect payment
in accordance with the instructions
given. The message also includes
settlement instructions.
When
you send via International Wire
Transfer, there is no need for postage
and mail service.
A wire
transfer helps to move money from one
account to another account. The
convenience of not having to physically
move the funds is unbeatable. Below are
simple step by step instructions for
wiring your money.
-
Contact the
foreign bank and
collect the
following
information:
1. Name of Bank
2. Bank
Identifier Code
(BIC)
3. Full address
of the bank or
branch address
4. IBAN # if
sending to
Europe
-
Step
2
Collect the
following
information from
the beneficiary
of the funds
1. Name
2. Account
number
3. Complete
address
-
Step
3
Determine the
amount of money
you wish to
send. Ensure the
availability of
the funds in
your account.
Remember,
usually there is
a fee for each
international
wire transfer.
Shop around
credit union
banks for a good
rate.
-
Step
4
After sending
the wire, ask
for a
confirmation.
Collect
necessary
information to
track the wire
transfer. Also
ask the
beneficiary bank
for an email or
fax confirming
the receipt of
funds.
Tips & Warnings
-
Usually
there is a
cut off time
at the bank
by which
time your
wire
transfer has
to be
submitted.
Any wires
submitted
after that
will be sent
the next
day. If you
are in a
rush, plan
accordingly.
-
The BIC
(Bank
Identifier
Code) is
different
based on the
country you
are sending
to. Canadian
banks use
TRNO,
Australian
banks use
BSB, German
and Austrian
banks use
BLZ, United
Kingdom uses
UKSORT and
other
countries
use SWIFT
code.
-
In case you
get a SWIFT
code, then
also ask for
the actual
BIC code.
-
Choose a
wire
transfer
where you
can track
the wire.
International
wire
transfer
uses several
jumps and
institutions
to send the
money over
and there
are cases
where the
funds are
lost and you
will get
reimbursed
(slowly). So
ability to
track the
wire is
unbeatable.
-
Many times,
you can send
the money to
a local US
bank (like
JP Morgan or
Chase) and
they will do
the
international
wire
transfer. In
this case,
you will
need to
provide an
additional
account
number for
the US bank
to identify
the
international
bank. BUT,
your bank
CANNOT track
the wire
beyond the
local US
bank, which
can be a
huge
disadvantage.
-
Wire
transfers
can take
upto 1 week,
though the
average is
much lesser.
So plan
ahead if you
need the
money to be
there by a
certain
time.
-
Beware of
the "instant
wire
transfer"
companies.
They either
charge a
percentage
of the
amount or
some
overhead per
dollar (USD)
transferred.
This can add
up VERY
quickly when
sending
large sums
of money.
-
Stay away
from
agencies
that deliver
the money in
form of a
check to the
beneficiary.
Money
directly in
the bank is
the way to
go. It is
safer and
less
complicated.
How do I make a wire transfer?
How do I send an international wire?
What does it cost to send a domestic
wire? What does it cost to send an
international wire? What is Bank of
America's SWIFT Code # and what is it
used for? What is an IBAN number?
SWIFT MT 103 Basic Format for Wire
Transfer
Tag |
Field Name |
20 |
Sender’s Reference |
13C |
Time Indication |
23B |
Bank Operation Code |
23E |
Instruction Code |
26T |
Transaction Type Code |
32A |
Value
Date/Currency/Interbank/Settled
Amount |
33B |
Currency/Instructed Amount |
36 |
Exchange Rate |
50a |
Ordering Customer |
51A |
Sending Institution |
52a |
Ordering Institution |
53a |
Sender’s Correspondent |
54a |
Receiver’s Correspondent |
55a |
Third Reimbursement Institution |
56a |
Intermediary Institution |
57a |
Account With Institution |
59a |
Beneficiary Customer |
70 |
Remittance Information |
71A |
Details of Charges |
71F |
Sender’s Charges |
71G |
Receiver’s Charges |
72 |
Sender to Receiver Info |
77B |
Regulatory Reporting |
77T |
Envelope Contents |
What is an International Payment?
International Wire Transfer
SWIFT MT 103 Basic Format for Wire
Transfer