‘International bank transfer’ is a term that you might have heard of at some point in your life. But what is it exactly? When you send money from one country’s bank account to another country’s bank account, this is known as an international bank transfer. It is the same as sending money internationally. In brief, you can utilise either a bank or a money transfer service. Once you understand the protocol, making an international bank transfer is simple.
International bank transfers are often completed within days, can be exchanged in numerous currencies, and can be conducted using both offline and online digital banking tools. In India, there are several sorts of international bank transfer services accessible, making it simple to conduct an international bank transfer from the comfort of your own home.
International Bank Transfer consists of the following elements:
- Transfer Speed: The greater the rates, the faster the pace. In most circumstances, 48-72 business hours should be deemed optimal for money transmitted out of India using proper internet methods, and a few days for checks and demand draughts.
- Exchange Rates: The foreign exchange rate is the value of one currency in relation to another. The core value is affected by fluctuations in foreign markets. It is crucial to remember that if the amount to be sent abroad is big, even a minor variance in the exchange rate might make a significant impact. You can use stock trading apps to get the required information about the exchange rates.
- Overhead Charges: When transferring money, a transfer fee is frequently added to the money order. This might be either a set sum or a percentage of the transferred cash.
Here are some of the services which you consider while making an international bank transfer:
- Bank Drafts and Cashier’s Cheques: Bank Drafts and Cashier’s Cheques are physically acquired in the currency of the place to which you’re transferring money at numerous bank locations around the country. Bank drafts and checks are less expensive than other foreign money transfer services, and they are regarded as safer since they can be traced if the cheques or drafts do not reach the target account on time. These, on the other hand, take a long time to reach the receiver and are hence suitable if the transfer is not urgent.
- International Bank Order: Prior to the introduction of online wire transfers, offline money orders were immensely common. Money orders can be placed into a bank account in this mode. They are a safe and economical solution for international bank transfers that are faster than bank draughts and checks.
- Online Money Transfer: One of the easiest ways to transfer money overseas is to do an international bank transfer online. The process requires only the destination account data, such as the receiving bank’s IBAN or SWIFT number, account holder information, and so on, and can be conducted from the comfort of your own home.
- Online Wire Transfer: An online wire transfer is a type of international bank transfer service that uses intermediate banks to move money internationally. While this slows down the procedure, it substantially minimises the amount of overhead charges for each transaction, which is why many people believe wire transfers to be an excellent alternative. A wire transfer can be booked through a variety of financial entities, including banks, authorised money exchangers, internet platforms, and others.
By now, you must be aware of what international bank transfer means, what its various types are and what are the different services available for doing it. Now let’s see how it is actually done.
Step 1: Verify the customer’s identification
When transferring money worldwide, the first step is to verify the customer’s identity, which is also legal necessity pursuant to banking rules. For first-time users, an ID check is often performed just once, however this varies depending on the agent (bank, person, etc.) or platform used.
Step 2: Secure an exchange rate
Once the customer’s ID has been verified and a desired mode of money transfer has been determined, the following step is to restrict the currency conversion rate. The latest currency exchange rate is supplied based on the currency in which you would pay in your nation. the currency in which you would like the receiver to take the money.
Step 3 – Pay for your transfer:
Once the currency conversion rate has been blocked, all information about the international bank transfer order is sent through email. You are also given a time limit, generally 1or 2 days, within which the payment must be paid.
Step 4: Your funds are converted and sent out.
The money supplied to the bank or firm will subsequently be converted in the currency you require and sent to the target bank account. Clearance periods are influenced by the bank or enterprise engaged, and also the intermediary banks. An online wire transfer made through a prominent bank in India typically takes 3-6 days for the cash to appear in the destination account.