An international wire transfer is a safe and efficient way to send and receive money abroad. If you do business with clients across borders, the fastest way to do it is to use an international wire transfer.
This article will help you understand the different types of international wire transfers, know what information you need to have on hand before making one, and how much you can save on costs by opening a business account.
What is an international wire transfer?
An international wire transfer is a banking service that electronically transfers money from one bank account to another in a different country. It is also a service that allows making and receiving international payments. These transactions do not require conversion to local currency before reaching the destination account. Lastly, the average transfer time for these movements is 1 to 5 business days.
What information is required to make an international wire transfer with Bancoli?
To make an international wire transfer with your Bancoli Global Business Account, you should have the following information ready:
- Recipient. The recipient’s full name and mailing address, including city, zip code, and country. Also, the professional or business email address.
- Recipient’s Bank. Name of the bank, country, and city.
- Bank Details. IBAN Code: the beneficiary’s account number; and SWIFT/BIC Code: an alphanumeric number identifying banking institutions and branches.
- Transaction Amount. It is essential to know the limit imposed by each banking institution involved.
It is crucial to know about international transfer fees, currency conversion fees, and the exchange rate for international payments. With Bancoli’s fees, you can get rates as low as $0. Even more, understanding these variables helps to optimize the cost of international payments.
How does an international wire transfer work? Types of international transfers
There are several ways to make an international wire transfer, the most common being SWIFT and SEPA.
- SWIFT transfers. The Society for Worldwide Interbank Financial Telecommunication, better known as SWIFT, is a financial institution that allows money transfers between banks worldwide. The SWIFT code is vital for businesses to send and receive international payments efficiently, securely, and conveniently. Each banking institution in the SWIFT network has an alphanumeric code of between 8 and 11 characters. The SWIFT code is also known as the Bank Identifier Code (BIC).
The SWIFT code identifies the receiving bank of an international transfer to ensure the security of the transaction.
- SEPA transfers. The Single Euro Payments Area (SEPA) facilitates bank transfers in euros within the eurozone: countries that are part of the European Union (EU) and nine other European countries that use the euro.
Understanding the fees, exchange rates, and processing times associated with international wire transfers is essential. These can vary significantly between different methods and providers. Additionally, double-check all the details to ensure a smooth transfer, as errors can lead to delays and additional fees.
What is the difference between “currency” and “foreign currency”?
The difference between “currency” and “foreign currency” is that “currency” refers to the official legal tender of a country, usually in the form of coins or paper money that a government or central bank issues and regulates.
In contrast, foreign currency refers to money that is not the official legal tender of the country. For example, if you are in Mexico, the official currency is the Mexican peso, and any other currency, such as US dollars or euros, is foreign.
How to Make an International Bank Transfer on Bancoli?
The most convenient way to make an international transfer is through the Internet, using a banking platform. For instance, with Bancoli, making and receiving international wire transfers is very safe. Consider the following:
- Bancoli is a platform for making business transfers for Business and Solopreneurs.
- Create a user and verify your business on Bancoli: After creating a user, complete the sign-up process by initiating the verification flow to create an account. Once the verification process has been completed, businesses gain access to their Bancoli USD business currency account, the first active account of their Global Business Account. With a verified account, companies can access Bancoli’s banking service, allowing them to accept payments from verified Bancoli users and external sources.
- If you already have a verified account with Bancoli, any external entity can transfer to your account. However, to carry out commercial transactions between two Bancoli accounts, both parties must have completed the verification process.
- When both parties have verified accounts with Bancoli, instant transactions can be made with maximum benefits and fees lower than any commercial bank offers.
- When the initiating account is a verified Bancoli account, the associated funds can be transferred to external accounts at a lower rate than commercial banks charge. It is vital to know that the account that initiates the transaction (i.e., the Bancoli account) is verified by the Bancoli platform.
Steps to follow to make an international wire transfer with Bancoli:
- Create an account with your email address.
- Complete the verification process to obtain your Bancoli USD business bank account, the first account of the Global Business Account.
- Activate 5 sub-accounts with local details for MXN, EUR, GBP, HKD, and SGD that are included in the GBA.
- Send and receive streamlined international payments with Bancoli GBA, supporting 6 currencies with local details and the best exchange rates and conversion fees for 10+ in 200+countries.
Different Ways to Transfer Money Globally with Bancoli
- Payment: This type of movement is always associated with an invoice or a payment request.
- Transfer: It includes money withdrawals and movements to external accounts without an invoice or payment request.
- Deposit: It refers to incoming funds from any account other than Bancoli and where there is no invoice in between. Bancoli deposits are considered transfers; this definition is to facilitate the understanding of the type of movement.
As a Bancoli user, the most common cross-border banking movements are payments and transfers. The most frequent scenarios are:
- I am a Bancoli user with a verified account. I want to pay for goods or services purchased from a beneficiary who does not have a Bancoli account.
- I am a Bancoli user with a verified account. I want to pay for goods or services purchased from a beneficiary with a verified Bancoli account.
Things to Know About Bancoli International Bank Transfers
You might wonder how long it takes to do an international transfer with Bancoli, the destination country, the destination bank, and any intermediary banks.
Fees and Rates for International Bank Transfers
Our rates are in USD; visit our membership plans for more details.
To know the payment methods Bancoli accepts and the currencies you can send money in, see “Currencies.”
For more details on making each type of payment or transfer or setting up a destination account, please log in to your Bancoli account at app.bancoli.com, where you can visit the Help Center or request a service session.