It is a method of international money transfer that uses the SWIFT messaging network to securely transmit payment instructions between financial institutions in different countries.

A vast global network

The Society for Worldwide Interbank Financial Telecommunication or SWIFT, as it is more commonly known, is the world's most dominant and standardised method for sending money to cross-border recipients.

Founded in 1973, SWIFT is set up as a globally inclusive co-operative, run by and for its more than 11,500 members of banks, financial institutions and large multinational corporates. They use this vast messaging network to communicate with each other securely about cross-border financial transactions.

SWIFT's network covers over 40,000 possible payment routes, through which more than 35 million transactions are processed every day. In 92% of the world's countries and territories at least three institutions are connected to it.

How does a cross-border payment over SWIFT work?

In simple terms, when a customer makes an international payment through their app or bank platform, their bank will send a message over the Swift network to the recipient bank. The recipient bank then processes the payment and sends the money to the customer account – but exactly what the recipient bank does will depend on varying factors: where the money has come from and local regulations will all impact exactly what the bank does before crediting the customer’s account.

So, while SWIFT provides a secure messaging system for sending payment orders between institutions' accounts (using SWIFT/BIC codes), the actual transfer of funds happens through banks, fintechs, and other intermediary or correspondent institutions. And it is here that transactions can be subjected to delays.

How long will it take?

SWIFT payments usually settle in 1-5 business days. Although 75% of SWIFT payments reach destination banks within 10 minutes there are several factors which can extend settlement times, sometimes quite considerably. These include:

• The Route & Intermediary Banks: If your transfer requires intermediary (correspondent) banks to reach the final destination, each bank adds its own processing and compliance checks. SWIFT data, however, shows that very few international payments on their network pass through long chains of intermediaries before reaching their destination. In fact, 86% of all SWIFT payments are conducted directly or with only a single intermediary.
• Currency: Major currencies (like USD, EUR or GBP) process faster than those of emerging markets.
• Cut-off Times & Business Days: Transfers initiated after a bank's daily cut-off time, or on weekends and public holidays, will not begin processing until the next business day.
• Security Compliance: Anti-fraud and anti-money laundering checks can add time, especially for large transfers or if information (like the recipient's BIC/SWIFT code) is missing or incorrect.

SWIFT are actively working with stakeholders to reduce settlement times and achieve targets set by the G20 in respect of enhancing the speed, transparency, cost and accessibility of cross-border payments.

While in-flight processing times between originating and destination banks has significantly accelerated, the data reveals that more work is needed at the beneficiary leg of a payment’s journey to achieve the G20’s end-to-end speed target.

SWIFT payments with GlobalWebPay

When making an international payment through GlobalWebPay in a currency other than the recipient's bank's currency you will need to send it by SWIFT. You might, for example, wish to transfer US dollars (USD) to a family member in Australia or pay euros (EUR) to a supplier in Turkey. These would be done through the SWIFT network.

With GlobalWebPay you can send USD, EUR and GBP from the UK to recipients in various countries where these currencies are not the local currency. Use the calculator on the home page or country specific page to see whether USD, EUR or GBP are available as an alternative to the local currency.

GlobalWebPay are transparent about pricing. The "Transfer cost" you see on the calculator is the only fee they will charge you for initiating the payment.

GlobalWebPay doesn't add any hidden foreign exchange, recipient or withdrawal fees. However, additional fees may be charged by other banks in the settlement chain.

This is outside of their control and is unfortunately a feature of the international banking environment.

The smarter choice

With a low flat fee, competitive exchange rates, and no hidden charges, GlobalWebPay is the smarter choice for making personal, business and charitable cross-border payments from the UK.

So, if you are looking to send some money abroad why not SIGN UP with GlobalWebPay today and pay no fee on your first transfer by entering the FEEFREE promo code at Checkout.

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