SWIFT and SEPA - what are they, how to make payments and save money on commissions... How long does the transfer take, what is the SWIFT code and what are the advantages that set these systems apart from the existing ones at the moment. You'll learn about these and other peculiarities of the international payment systems "SWIFT" and "SEPA" from this article.
You can discern which of these payment systems is more suitable for solving your financial problems. Here we go.
The rapid progress in global trade has required the introduction of new tools for international payments. Just a few years ago we couldn't imagine that anyone would be able to sell goods internationally.
With the advent of marketplaces, affiliate programs and various online trading platforms, every entrepreneur can trade in any of the international markets.
In this case, the seller may not even have the goods - purchase and storage is carried out by specialized organizations, and all the movement of transactions the person carries out online at home or in the office.
Such changes required a common inter-bank system, which would increase the speed of financial transactions between foreign banks.
SWIFT is a system of money transfers for which a set of rules and standardization are applied. It unites more than 10,000 banks and 200 countries around the world. It is worth mentioning that SWIFT does not work in all banks of the countries.
SWIFT-payments are used to make transfers between organizations and individuals. For international personalization a swift-code of the bank is used.
SWIFT-code - how do I know it and what does it mean? The recipient bank's SWIFT code contains information about the type of institution and its location. It is used to identify banks and financial institutions. It is essentially a code of 8 or 11 digits that tells the user's country, locality and bank, including the branch number.
You can find out the swift code of the bank in the bank itself and in special directories of swift codes. In online banking you can ask for details or find out the SWIFT code in the online chat from an employee of the bank.
It's worth mentioning that SWIFT codes are only used for international transfers and guarantee high security and speed of transactions. To send a SWIFT transfer, you need to know the SWIFT code of the recipient's bank.
What does a SWIFT transfer provide? Swift-transfer makes it possible to make transactions in foreign currency anywhere in the world in favor of individuals and legal entities. Entrepreneurs use it to sell goods and provide services in the international market, while individuals transfer money to their relatives and friends.
Swift-transfer makes it possible to make transactions in foreign currency anywhere in the world in favor of individuals and legal entities. Entrepreneurs use it to sell goods and provide services in the international market, while individuals transfer money to their relatives and friends.
Swift payments is convenient not only for transfers and receiving payments, but also for payments. This is a universal system, which currently offers the most favorable conditions for international online trade.
Swift transfers make it convenient to pay for hotel rooms, restaurant bills, transportation tickets, medical treatment, etc. Large geography of presence of a SWIFT international money transfers allows making purchases and paying for services in almost any civilized world corner.
SWIFT-transfer in the majority of banks can be sent in working days in case it is executed till the end of the bank day. The time of crediting of the electronic transfer depends on the specific banks involved in the transaction.
The standard period of time a SWIFT transfer can go from 1 to 5 working days, but in most cases, crediting is carried out within 24 hours.
The cost of each SWIFT transfer is determined at the time of execution and averages $10-20. At this moment this is the most favorable rates among all international payment systems.
In contrast to SWIFT, the system of SEPA allows individuals and entities to make international transfers in the Single European Financial Area. The system was launched in 2008, when the need arose for international money transfers in the currency EUR.
The main advantage of the European system "SEPA" is minimum transfer fee or no fee at all. Transaction duration is from 1 to 24 hours, which makes SEPA ideal for carrying out transfers in EUR on the territory of Europe.
SEPA stands up for consumer rights The concept of SEPA international money transfer system from the very beginning is based on the care for the consumer. High security level of the transactions and simplicity of contesting problematic situations for the user characterizes SEPA system as the most convenient one for making money transfers in the EU countries. It is possible to transfer money in SEPA system between 36 European countries.
Each of the remittance systems described above has its advantages and disadvantages. SWIFT is ideal for transfers, payments and making payments around the world, while SEPA is the best option to transfer money within the European Union. Which payment system to choose depends on each specific task of a person or company.
One thing that SWIFT and SEPA have in common is that they are a reliable and fast way to transfer money to family members, as well as to conduct financial transactions in business.