Most of it is pretty straightforward. So, this article focuses solely on explaining SWIFT codes because there's more to SWIFT codes than meets the eye.
What's a SWIFT code and how does it work?
A SWIFT code is a unique code with 8 or 11 characters that pinpoints a specific bank or financial organization. SWIFT is short for Society for Worldwide Interbank Financial Telecommunication, a global messaging network that facilitates communication between financial institutions across different countries.
Identifying financial institutions through unique, standardized codes ensures international payments get sent to the right place quickly and safely. When you initiate an overseas transfer, your provider will send a message to the recipient's bank via the SWIFT network. Once the message is received, the recipient's bank clears and credits the money to the correct account.
Keep in mind that SWIFT doesn't handle funds or bank accounts. It's only a messaging system to send payment orders/instructions – not money – from one bank to another. Still, the SWIFT network is highly secure and powerful enough to have revolutionized connectivity between financial institutions.
Is a SWIFT code the same as a BIC?
BIC stands for Business Identifier Code, a unique number that identifies a particular bank or business, while SWIFT refers to the entire messaging system. SWIFT codes and BICs are used synonymously since a SWIFT code is a type of BIC that SWIFT assigns for sending and receiving international payments. Other names for a SWIFT code include SWIFT ID/number/identifier and ISO 9362 code.
What does a SWIFT code look like?
SWIFT codes have a standard format that looks like this: AAAA-BB-CC-123.
AAAA – Bank code. This is usually a shortened form of the bank's name.
BB – Country code. These letters represent the country of the bank.
CC – Location code. This alphanumeric code specifies the location/city.
123 – Branch code. This identifies the branch of the bank. XXX refers to the head office.
Notice that this SWIFT code contains 11 characters (BIC11) because the branch code is added. 8-character codes (BIC8) only identify the bank, not the branch.
SWIFT code vs. IBAN code
SWIFT is short for Society for Worldwide Interbank Financial Telecommunication, while IBAN is short for International Bank Account Number.
A SWIFT code is 8 or 11 characters, while an IBAN is up to 34 characters.
A SWIFT code identifies a particular bank and its branch, while an IBAN code identifies an individual bank account.
Both IBAN and SWIFT codes ensure the smooth processing of overseas money transfers.
You usually need an IBAN if you send money to a country supporting the IBAN system. Otherwise, the SWIFT code alone will do.
How to find a SWIFT code
When transferring money overseas, you need a SWIFT code since it's used to ID your beneficiary's bank. A SWIFT code allows a bank on one side of the world to identify a bank on the other side within seconds, so getting this code right prevents delivery problems. You can find a SWIFT code by:
Checking the bank's website
Using an online SWIFT code checker
Confirming it with your beneficiary (Ask them to look at bank account statements or log into their online banking account)
Send money SWIFTLY and securely today
When you have all the banking details needed for your overseas transfer and a better understanding of SWIFT codes, it's time to consider how exchange rates and transfer fees affect your payment. Watch out for banks because they have a reputation for marked-up exchange rates and high transfer fees.
There are better ways of sending funds abroad, like MTFX. As a currency specialist, MTFX offers competitive exchange rates (3-5% better), lower transfer fees and quick turnaround times. (1-2 days).
Open an account today with MTFX for secure online transfers with the best value.
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Who can use the MTFX payment service?
Individuals and businesses who need to send money in foreign currency internationally can use MTFX’s services. The beneficiary of the transfer must have a bank account for the funds to be paid into.
Personal clients usually use our services to transfer money between their own accounts in two different countries.
Business clients usually use our services to transfer funds to suppliers, fund international operations, or repatriate overseas earnings.
Why should I use MTFX and not my own bank?
MTFX offers currency exchange rates that are 2-5% better than those offered by the banks. Personal clients usually save hundreds of dollars per transfer and for larger transfers, the savings can run into the thousands.
We also offer excellent customer service, dedicated currency specialists, and a 24/7 online platform with best-in-class technology that allows you to complete transfers from any device virtually anywhere in the world.
Business customers save with better currency exchange rates and proven solutions geared towards managing and mitigating foreign exchange risk. Our solutions include forward contracts, market orders, rate alert services, and much more - all backed by great technology and great people.
How do customers send funds to MTFX?
Funds can be transferred via wire transfer, Electronic Funds Transfer (EFT), or ACH payment services. MTFX maintains bank accounts in all major currencies with highly-rated banks. Our banking infrastructure ensures that you can transfer funds to us quickly and securely.
How long does it take MTFX to transfer funds?
Our global network of banking partners allows us to get funds to virtually anywhere in the world quickly and efficiently. Most wire transfers from MTFX will be received by your beneficiary within 24-48 hours. MTFX also offers same-day transfers that are almost instantaneous, as well as low-cost in-country payment services for your less urgent transfers. For further information please speak to one of our currency specialists.
Please read the following update before logging in to your MTFX online account
We have updated our online dealing system to provide you with better functionality, more unique tools and an overall enhanced client experience. MTFX Online 2.0 is now available for your dealing needs. You can begin using our enhanced online portal today.
Please note that the traditional portal will be available for use until MAY 30th 2021 at which point it will be decommissioned.