How to Make Fast SWIFT Transfers Through a Digital Bank?28 min read
Reading Time: 10 minutesSending money internationally is an essential part of managing personal finances and running a business across borders. Whether you are paying overseas suppliers, receiving payments from international customers, or transferring funds between accounts in different countries, understanding how SWIFT transfers work can help you make informed financial decisions.
The SWIFT network connects banks and financial institutions worldwide, allowing them to exchange standardized payment instructions securely. It supports international transactions across different currencies and banking systems, making it one of the key infrastructures behind global payments.
However, SWIFT is not a bank and does not directly hold or transfer customer funds. Instead, it provides the messaging infrastructure that financial institutions use to communicate payment instructions. The actual movement of money takes place through the institutions involved in the transaction.
In this guide, we explain what a SWIFT transfer is, how the process works, which details you need to send money internationally, what fees to expect, and how digital banking solutions such as The Kingdom Bank can support cross-border payments.
What Is a SWIFT Transfer?
A SWIFT transfer is an international bank payment initiated through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. This network allows banks and other financial institutions to exchange standardized financial messages, including instructions for cross-border payments.
Established to create a common communication standard for the financial industry, SWIFT connects thousands of institutions across more than 200 countries and territories.
It is important to understand that SWIFT does not actually move money between accounts. It securely transmits payment instructions from one financial institution to another. The banks involved then process the transaction and settle the funds through their banking relationships and payment systems.
For example, when a business in the United States pays a supplier in Europe, its bank can use the SWIFT network to send the payment instructions to the recipient’s bank. Depending on the transaction, one or more intermediary banks may also participate in the process.
In simple terms: SWIFT is the messaging network that helps financial institutions communicate and coordinate international payments.
What Is the Difference Between SWIFT and a Bank Transfer?
Although the terms are often used interchangeably, SWIFT and a bank transfer are not exactly the same thing.
Bank transfer: The actual movement of funds from one account to another.
SWIFT network: The secure messaging infrastructure used by financial institutions to exchange international payment instructions.
SWIFT transfer: A cross-border payment processed using SWIFT messaging.
This distinction matters because sending a payment message does not automatically mean that the recipient has received the funds. The receiving institution must still process the payment and credit the beneficiary’s account.
How Does a SWIFT Transfer Work?
A SWIFT bank transfer involves several stages, from the initial payment instruction to the final crediting of funds.
The exact process depends on the sending and receiving banks, the destination country, the payment currency, and whether intermediary institutions are required.
Here is how a typical international SWIFT transfer works:
- Payment initiation: The sender provides the recipient’s banking information, including their name, account number or IBAN, and the receiving bank’s SWIFT/BIC code.
- Payment verification: The sending bank checks the payment details and performs the necessary compliance and security checks.
- SWIFT message transmission: The sending institution transmits standardized payment instructions through the SWIFT network.
- Intermediary bank processing: If the sending and receiving institutions do not have a direct correspondent banking relationship, one or more intermediary banks may help route the payment.
- Receiving bank processing: The beneficiary’s bank receives the payment instructions, completes any required checks, and processes the transaction.
- Funds credited: Once processing and settlement are completed, the receiving bank credits the recipient’s account.
Not every SWIFT payment follows the same route. Some transactions are processed directly between financial institutions, while others require intermediary banks.
According to SWIFT’s published data, 86% of payments on its network are processed directly or involve only one intermediary.
What Is a SWIFT Code (BIC)?
A SWIFT code, also known as a Bank Identifier Code (BIC), is an internationally standardized identifier used to identify financial institutions involved in financial transactions.
It helps ensure that payment instructions are directed to the correct institution, reducing the risk of errors when sending money internationally.
A BIC generally contains either 8 or 11 characters, consisting of letters and numbers.
SWIFT Code Structure Explained
| Component | Characters | What It Identifies |
|---|---|---|
| Bank code | 4 | The financial institution |
| Country code | 2 | The country where the institution is registered |
| Location code | 2 | The institution’s location or operational identifier |
| Branch code | 3 (optional) | A specific branch, department, or service |
For example, a SWIFT/BIC code follows this general format:
The first eight characters identify the institution and its location, while the final three characters provide an optional branch identifier.
Is a SWIFT code the same as a BIC?
Yes. SWIFT code and BIC are commonly used interchangeably. BIC is the formal name of the international identification standard, while SWIFT code refers to its use within the SWIFT financial messaging ecosystem.
However, having a BIC does not necessarily mean that an institution is connected to or authorized to exchange messages through the SWIFT network.
What Is the Difference Between SWIFT, BIC, and IBAN?
SWIFT, BIC, and IBAN are closely related, but they serve different purposes in international banking.
| Term | Full Name | Main Purpose |
|---|---|---|
| SWIFT | Society for Worldwide Interbank Financial Telecommunication | Enables secure financial messaging between institutions |
| BIC | Business Identifier Code | Identifies a financial institution |
| IBAN | International Bank Account Number | Identifies a specific bank account |
A SWIFT/BIC code identifies the receiving financial institution, whereas an IBAN identifies the beneficiary’s individual account in countries that use the IBAN system.
For example, when sending an international payment to a European business, you may need both the recipient’s IBAN and their bank’s SWIFT/BIC code, depending on the payment route and requirements.
It is worth noting that not every country uses IBANs. In countries without an IBAN system, banks may request a local account number, routing number, or another country-specific banking identifier.
What Is an EU SWIFT Account?
The term EU SWIFT account is sometimes used to describe a bank account held with a financial institution in the European Union that can receive international payments through the SWIFT network.
However, it is not a separate account type or an official SWIFT banking product. An account’s ability to receive SWIFT payments depends on the receiving institution, its banking arrangements, and the currencies and payment routes it supports.
For international businesses, a multi-currency account can simplify receiving and managing payments in different currencies. The available transfer methods and account details depend on the provider and the customer’s eligibility.
How to Send Money Using a SWIFT Transfer
Sending money through SWIFT requires accurate recipient information and an understanding of the payment requirements set by the financial institutions involved.
Whether you are paying an overseas supplier, transferring money to a personal account, or settling an international invoice, the general process follows these steps.
1. Obtain the Recipient’s Banking Details
Before initiating a SWIFT money transfer, request the following information from the recipient:
- Full legal name of the account holder or registered business.
- Recipient’s bank name and address.
- SWIFT/BIC code of the receiving bank.
- IBAN or local bank account number.
- Payment currency and amount.
- Payment reference or transaction purpose, if required.
Additional information may be requested depending on the destination country, currency, and receiving institution.
2. Choose the Transfer Currency
Determine which currency you want to send and whether the recipient’s account can receive it.
If you send a payment in a different currency from the recipient’s account currency, a currency conversion may be necessary. The exchange rate and any applicable conversion charges can affect the final amount received.
3. Enter the Payment Information
Log in to your online banking platform and navigate to the international payments or transfer section.
Enter the recipient’s details, select the payment currency, specify the amount, and provide any required payment references.
4. Review Fees and Exchange Rates
Before confirming the payment, check the applicable transaction fees, intermediary bank charges, and currency conversion rates.
Depending on the payment arrangement, charges may be shared between the sender and recipient or deducted from the transferred amount.
5. Confirm and Track the Transfer
Review all the information carefully before submitting the transaction.
Once the payment is initiated, your bank may provide a payment confirmation or reference number. Depending on the institution and the payment service available, you may also be able to monitor its status until the transaction is completed.
Important: Always verify the recipient’s IBAN or account number and SWIFT/BIC code before confirming an international payment. Incorrect or incomplete information can cause delays, rejection, or additional processing costs.
How Long Does a SWIFT Transfer Take?
A SWIFT transfer can reach the beneficiary bank within minutes, but the time required for the recipient to receive and access the funds varies.
According to SWIFT’s published network data, 75% of payments reach the beneficiary bank within 10 minutes, while more than 90% arrive within one hour. However, this measures the payment’s journey between financial institutions, not necessarily the time until the funds are credited to the recipient’s account.
The final processing stage can take longer depending on the receiving bank’s procedures and local requirements.
Factors That Affect SWIFT Transfer Times
| Factor | How It Affects Processing |
|---|---|
| Bank cut-off times | Payments submitted after cut-off may be processed on the next business day. |
| Intermediary banks | Additional institutions may be involved in routing and processing payments. |
| Weekends and public holidays | Non-working days may delay processing and account crediting. |
| Compliance checks | Additional verification may be required before funds are released. |
| Incorrect payment details | Missing or inaccurate information can result in delays or rejected payments. |
| Currency and destination | Local banking infrastructure and foreign exchange regulations may affect processing. |
One particularly important factor is the receiving bank’s final processing stage, often called the last mile. Even if a payment reaches the beneficiary bank quickly, additional checks and local processing procedures may delay the funds becoming available.
What Are the Fees for SWIFT Transfers?
The cost of an international SWIFT bank transfer depends on several factors, including the sending bank, receiving bank, payment currency, destination country, and number of intermediary institutions involved.
There is no single universal SWIFT transfer fee. Instead, different institutions may apply separate charges throughout the payment process.
Common SWIFT Transfer Fees
| Fee Type | Description |
|---|---|
| Sending bank fee | Charged by the institution initiating the transfer. |
| Intermediary bank fee | Applied by correspondent banks involved in routing the payment, where applicable. |
| Receiving bank fee | Charged by the beneficiary’s bank for processing the incoming payment, where applicable. |
| Currency conversion fee | May apply when the payment currency differs from the account currency. |
| Exchange rate margin | The difference between the provider’s exchange rate and a reference market rate. |
Who Pays SWIFT Transfer Fees?
International SWIFT payments commonly use one of three charge arrangements:
- OUR: The sender agrees to cover the applicable transfer charges.
- SHA: The sender and recipient each pay the charges applied by their respective banks or parts of the payment chain.
- BEN: The recipient bears the applicable charges, which may be deducted from the transferred amount.
The actual availability and treatment of these options depend on the payment corridor and participating financial institutions.
How Can You Reduce International Transfer Costs?
If your business regularly sends or receives international payments, understanding the full cost of each transaction can help improve cash flow management.
Consider these practical steps:
- Compare the total cost of different international payment providers.
- Review the exchange rate margin, not just the advertised transfer fee.
- Check whether intermediary or receiving bank charges may apply.
- Use multi-currency accounts when they suit your payment needs.
- Consider consolidating recurring supplier payments where practical.
- Confirm the fee arrangement before initiating a transfer.
For businesses managing payments across multiple markets, choosing a banking provider with international payment capabilities and transparent fee information can make cross-border financial operations easier to manage.
What Are the SWIFT Transfer Regulations and Security Requirements?
SWIFT provides a secure messaging infrastructure, but every financial institution involved in a transaction remains responsible for complying with the regulations applicable to its activities and jurisdictions.
International transfers may be subject to several verification and compliance procedures before funds are released.
Key Compliance Requirements
Anti-Money Laundering (AML)
Financial institutions conduct checks designed to identify and prevent money laundering and suspicious financial activity.
Know Your Customer (KYC)
Banks may request identity documents, business registration records, ownership information, or other supporting documents to verify customers.
Sanctions Screening
Payment details and involved parties may be screened against applicable sanctions lists and regulatory restrictions.
Transaction Monitoring
Financial institutions monitor transactions to identify unusual activity, inconsistencies, or payments that require additional review.
Payment Information Accuracy
Complete and accurate beneficiary information helps financial institutions process transactions and perform the required checks.
These procedures can vary according to the transaction, customer profile, destination, and applicable regulatory framework.
How Can The Kingdom Bank Support Your International Payments?
Managing international payments requires more than simply sending money from one account to another. Businesses operating across borders need banking infrastructure that supports multiple currencies, international transactions, and day-to-day financial operations.
The Kingdom Bank provides digital banking solutions designed to support international customers and businesses with cross-border financial requirements.
As a member of the SWIFT network, The Kingdom Bank Corporation provides SWIFT payment capabilities alongside its other international banking services. Its published SWIFT/BIC code is KICPDMD2.
International Banking Solutions for Businesses
Here is how The Kingdom Bank’s services can support international financial operations:
Multi-Currency Accounts
Manage funds in multiple currencies through dedicated account solutions designed for international financial activities.
SEPA and SWIFT Payments
Access international payment capabilities through SWIFT and SEPA, subject to the relevant payment requirements and service availability.
Global Payment Network
The Kingdom Bank facilitates local and international payments in more than 80 countries, supporting customers with cross-border payment needs.
Whether you are managing international supplier payments, receiving funds from overseas customers, or coordinating transactions across multiple currencies, having the right banking infrastructure can make a meaningful difference to your financial operations.
Simplify Your Global Payments with The Kingdom Bank
Take control of your international banking needs with digital solutions designed for businesses operating across borders. Explore multi-currency accounts, international payment capabilities, and corporate banking services with The Kingdom Bank.
Open an account and discover a more connected approach to international banking.
Explore The Kingdom Bank | Discover Corporate Banking Solutions
Frequently Asked Questions About SWIFT Transfers
1. What is a SWIFT transfer?
A SWIFT transfer is an international bank payment processed using the SWIFT financial messaging network. It allows financial institutions to exchange standardized payment instructions securely to facilitate cross-border transactions.
2. Is SWIFT the same as an international bank transfer?
No. An international bank transfer refers to the movement of money between accounts in different countries. SWIFT is one of the messaging networks financial institutions use to coordinate these transactions.
3. How long does a SWIFT transfer take?
Many SWIFT payment messages reach the beneficiary bank within minutes or an hour. However, the total time until funds become available depends on the receiving bank, intermediary institutions, local banking hours, and compliance checks.
4. What information is needed for a SWIFT transfer?
You generally need the recipient’s full name, bank name, SWIFT/BIC code, IBAN or local account number, payment amount, and currency. Additional information may be required depending on the destination country and receiving bank.
5. Is a SWIFT code the same as a BIC code?
Yes. SWIFT code and BIC are commonly used to refer to the same standardized financial institution identifier. A BIC generally contains 8 or 11 alphanumeric characters.
6. Can I send money internationally without a SWIFT code?
Yes, depending on the payment method and destination. Some transfers can be processed through domestic payment systems, regional networks such as SEPA, or alternative international payment providers. However, a SWIFT/BIC code may be required for certain cross-border bank transfers.
7. Why is my SWIFT transfer delayed?
Common reasons include incorrect beneficiary details, bank cut-off times, weekends, public holidays, intermediary bank processing, currency conversion requirements, and additional compliance checks.
8. Are SWIFT transfers secure?
The SWIFT network is designed to provide secure and standardized financial messaging between participating institutions. However, the security of an individual transaction also depends on the banks involved, their internal controls, and the accuracy of the payment information provided.
9. What is the difference between SWIFT and IBAN?
A SWIFT/BIC code identifies a financial institution, while an IBAN identifies a specific bank account in countries that use the IBAN standard. Both may be required to process an international payment.
10. Does The Kingdom Bank support SWIFT transfers?
Yes. The Kingdom Bank Corporation is a member of the SWIFT network and offers SWIFT payment capabilities alongside its international banking services. Its published SWIFT/BIC code is KICPDMD2. Transaction availability and requirements depend on the relevant account and payment conditions.
Disclaimer: Originally published in February 2024 and updated in November 2026. This article is intended for informational and educational purposes only and does not constitute financial, legal, or investment advice. Information may change over time. Always verify the latest details with the relevant financial institution before making financial decisions.
About The Author
Legal Disclaimer: The Kingdom Bank is licensed and authorised by the Financial Services Unit, Ministry of Finance of the Commonwealth of Dominica, licensed as a banking institution under the International Banking Act, fully authorised to provide services to clients worldwide, under the prudential supervision of the Financial Services Unit. thekingdombank.com operates under a licence granted by the Commonwealth of Dominica and provides its services to customers under this licence.
