What is a wire transfer?

A wire transfer is an electronic money transfer method used to send funds between individuals or businesses. It involves the sender initiating the transfer at their bank, and providing recipient details such as name, bank, account number, and amount. The funds are then sent electronically to the recipient's account.

How is a wire transfer different from a bank transfer?

While both wire transfers and bank transfers serve the same purpose of moving money, a wire transfer typically involves an intermediary (the sender's bank) forwarding transfer information to the recipient's bank. In a bank transfer, funds move directly from one bank account to another.

What is SWIFT in a wire transfer?

SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, is a messaging network used in wire transfers. It ensures secure and accurate transmission of payment instructions and helps route funds to the correct recipient's bank.

What is an IBAN, and how is it related to wire transfers?

IBAN, or International Bank Account Number, is a standardized international numbering system that identifies overseas bank accounts. IBANs reduce errors in international payments by specifying the recipient's account. You can find your IBAN on your bank statement.

What's the difference between SWIFT and IBAN?

SWIFT and IBAN serve different roles in international payments. SWIFT is a messaging network used to identify the recipient's bank and branch, ensuring secure transmission. IBAN, on the other hand, pinpoints the specific bank account involved in the transaction. SWIFT has a broader global reach, connecting over 200 countries and territories, while IBAN is utilized in more than 70 countries. The combination of both systems enhances the efficiency and security of cross-border salary transfers.