How International Wires Work?

An international wire transfer is one of the most reliable ways to send money across borders. It allows businesses to securely transfer funds between banks in different countries. Whether paying overseas suppliers, sending salaries to remote workers, or managing global investments, wire transfers make international payments simple and traceable.

For Canadian businesses, understanding how these transfers work helps reduce costs and avoid delays. Knowing the process, required details, and potential fees can improve efficiency and strengthen international relationships. 

What is an international wire transfer?

An international wire transfer is an electronic way to send money between banks in different countries. It’s a reliable method to move funds quickly and securely across borders.

Businesses use cross-border wire transfers for many reasons. These include paying overseas suppliers, buying business properties abroad, or managing global investments. Canadian businesses often rely on international wires to settle invoices, pay contractors, or manage cross-border operations.

Each international wire passes through several systems and intermediaries. The process may involve the SWIFT network, currency conversion, and multiple banks before reaching the recipient. That’s why accuracy, timing, and proper details matter when sending money internationally. 

How international wire transfers work: Step-by-step guide

International wire transfers involve several stages that ensure money moves safely across global banking systems. Each step helps verify details, route funds correctly, and complete the payment efficiently.

Step 1: Provide recipient and transfer details

The sender begins by entering the recipient’s information, including name, bank name, account number, and IBAN or SWIFT code. The currency, transfer amount, and purpose must also be included. Any incorrect detail can delay the payment or cause rejection. For smooth cross-border wire transfers, always double-check information before submitting. Accurate details ensure funds reach the intended destination without extra costs or complications.

Step 2: Sending bank initiates the transfer

After verification, the sending bank processes the request and initiates the transfer through the SWIFT network. This system connects financial institutions worldwide to exchange secure payment instructions. Banks confirm account legitimacy, check compliance rules, and apply any necessary exchange rate conversions. The sender may also incur international bank wire fees at this stage. Using a trusted service helps reduce costs and ensures faster delivery compared to traditional banking channels.

Step 3: Intermediary banks process and relay the funds

When banks do not have a direct relationship, one or more intermediary banks in international wire transfers step in to facilitate the process. These correspondent banks act as links between the sending and receiving institutions. They ensure funds are routed through the proper channels and currency networks. Each intermediary may charge a small handling fee, which can slightly reduce the received amount. Fintech platforms often simplify this step, minimizing extra charges and delays.

Step 4: Recipient bank receives and credits the account

Finally, the recipient’s bank accepts the transferred funds, performs necessary checks, and deposits the amount into the recipient’s account. If currency conversion is needed, the exchange rate at the time determines the final value received. Depending on the country, this step may take one to three business days. For example, sending CAD from Canada to EUR in Europe involves currency conversion and verification steps. 

International wires for Canadian businesses benefit from using platforms like MTFX for faster, lower-cost settlements. MTFX also offers bank-beating exchange rates so that businesses can save money on every transfer. To get an idea of the rates of your desired currency pair, you can check the currency converter below. 

How long do international wire transfers take from Canada?

International wire transfers from Canada usually take one to five business days to complete. The exact time depends on the countries involved, the banks’ processing systems, and the type of currency sent.

Typical timeframe for cross-border wire transfers

In most cases, transfers to major destinations like the US or Europe clear within one to three business days. Transfers to Asia, Africa, or smaller financial networks may take longer. Domestic verification and foreign bank approvals can also affect timing.

Traditional banks often process cross-border wire transfers more slowly due to multiple intermediaries and manual checks. Each step can add a day or two to the process.

Factors that affect transfer speed

Several factors influence how quickly funds move:

• Bank cut-off times: Transfers made after business hours are processed the next working day.
• Destination country: Transfers to countries with less integrated banking systems take longer.
• Currency type: Converting between rare currencies adds extra time for exchange and settlement.
• Compliance and security checks: Banks perform anti-fraud and AML verifications before approving transfers.

These checks ensure security but can delay delivery slightly, especially for first-time transactions.

Banks vs. fintech providers like MTFX

Traditional banks rely heavily on manual systems and multiple intermediaries. Fintech providers like MTFX use automated processes and direct banking networks to complete transfers faster.

While a bank wire might take three to five days, MTFX can deliver international payments within one to two business days in many cases.

For businesses sending frequent cross-border wire transfers, choosing a digital FX provider can mean faster delivery, transparent fees, and real-time tracking. You can get all without the usual banking delays.

What information do you need for an international wire?

To complete an international wire transfer, you need a few key details. Providing accurate information helps your money reach the right account without delays or errors.

1. Recipient’s full name and address

Start with the recipient’s legal name as it appears on their bank account. Add their complete address, including city and country. These details help banks confirm identity and prevent fraud. For cross-border wire transfers, accuracy is critical to avoid rejected payments.

2. Bank name and address

Include the recipient’s bank name and branch address. This helps identify the correct financial institution during processing. Some countries have multiple banks with similar names, so double-check this step before submitting.

3. IBAN or account number

The IBAN or account number tells banks exactly where to send funds. An incorrect number can cause long delays or failed transactions. Use IBAN Checker before confirming your payment. It ensures the structure and length of your IBAN are valid and reduces costly errors. You can use the free IBAN checker on the MTFX website to verify your details.

4. SWIFT or BIC code

The SWIFT/BIC code identifies the recipient’s bank internationally. It acts like a global routing number that connects banks across borders. Without it, your transfer might not reach the right institution. Check the code carefully with the SWIFT code checker to avoid processing issues.

5. Payment amount and reason

Some countries require you to mention why you are sending the funds. It can be for investments, invoices, or any other reason. Adding a clear payment reason helps banks process your transfer quickly and stay compliant with international regulations.

How much do international wire transfers cost?

The cost of an international wire transfer depends on several factors. Each step in the process may include a fee. Knowing what affects the total helps you compare providers and choose the best option for your needs.

1. Sending bank fees

Most banks charge a fixed fee to send an international wire. The amount can vary based on destination, transfer speed, and currency. Some banks also add administrative costs. Fintech platforms often offer lower or zero transfer fees for cross-border wire transfers, making them a smarter choice for frequent senders.

2. Intermediary bank charges

When a transfer passes through other banks before reaching the recipient, it is called an intermediary wire transfer. Each intermediary may deduct a small fee from the total amount. These charges are often hidden and can reduce what the recipient receives. Choosing a provider with direct payment routes, like MTFX, helps avoid unnecessary intermediary fees and keeps transfers transparent.

3. Receiving bank fees

The recipient’s bank may also charge a fee to process the incoming wire. This is more common with international accounts or smaller regional banks. Fees vary depending on the country and currency involved. Always check with the receiving bank to understand the total cost before sending funds abroad.

4. Exchange rate markup

The exchange rate determines how much foreign currency your recipient gets. Many banks add a markup on top of the real market rate. This can quietly increase costs without clear disclosure. Comparing live rates from different providers helps you get a better deal. MTFX offers real-time conversion, ensuring you receive competitive rates and complete transparency.

5. How costs vary by provider and currency

Each currency pair has different transfer costs. Common currencies like USD, EUR, and GBP often move cheaper and faster. Exotic currencies or countries with stricter regulations may cost more. The total cost depends on the number of intermediaries and the conversion rate applied.

6. Compare rates before sending money abroad

Before sending an international wire transfer, review total fees, exchange rates, and delivery times. Platforms like MTFX provide full cost breakdowns and better pricing than traditional banks. With transparent fees and faster cross-border wire transfers, you can move money globally without surprises.

Common issues with international wire transfers

International wire transfers are reliable, but small errors can cause delays or extra costs. Understanding the most common problems helps businesses avoid frustration and unnecessary fees.

1. Delays caused by incorrect details

Incorrect recipient names, IBANs, or SWIFT codes are leading causes of wire transfer delays. Banks must verify every piece of information before releasing funds. Even a minor error can trigger a compliance hold or rejection. Businesses sending international wires for Canadian businesses should always double-check details before approving a transfer.

Tip: Use MTFX’s IBAN and SWIFT validation tools to confirm banking information before sending money.

2. Lost or returned payments

A transfer can be returned if the IBAN or SWIFT code is invalid. This leads to wasted time and added fees. Some banks also charge service fees for unsuccessful wire transfers. If the account number doesn’t match the recipient name, the transfer may get flagged for manual review. Keeping information accurate reduces the risk of reversal.

3. Unexpected deductions from intermediary banks

When payments move through multiple banks, each intermediary may take a small fee. These deductions are often not visible at the start of the transfer. An intermediary wire transfer may also face extra handling costs or delays. Choosing providers with fewer intermediaries helps avoid such issues and ensures your recipient gets the full amount.

4. High or unclear wire transfer fees

Many banks include hidden costs in their exchange rate markups. These can make international bank wire fees more expensive than expected. The total cost often includes sending, intermediary, and receiving bank charges. Businesses that send regular payments should compare providers to find better value.

Tip: Platforms like MTFX specialise in SWIFT international wires that are fast, transparent, and cost-effective.

5. Avoiding hidden charges and payment errors

You can reduce risks by verifying details, tracking transfers, and using trusted payment platforms. Always confirm fee structures before sending funds. Selecting the right partner is key to avoiding hidden charges on international wire transfers.

With MTFX, Canadian businesses enjoy faster, traceable, and lower-cost international transfers. Each payment moves securely through a regulated network with full transparency from start to finish.

How to set up an international wire transfer for Canadian businesses

Setting up an international wire transfer is simple when you know what details to prepare. Canadian businesses use this method to send or receive payments abroad through secure banking networks.

Start by gathering key information. You’ll need the recipient’s full name, bank name, account number or IBAN, and SWIFT or BIC code. Always double-check these details before sending funds. A single error can delay the transfer or cause extra fees.

Here’s how to set up your transfer step by step:

• Log in to your online banking or preferred money transfer platform.
• Select the option for international wire transfer.
• Enter the recipient’s bank details, including IBAN or account number and SWIFT/BIC code.
• Choose the transfer amount and currency.
• Add a payment reference or purpose if required.
• Review and confirm the details before sending.
• Track your transfer until the funds arrive in the recipient’s account.

Many payments pass through an intermediary wire transfer system. This means the money moves between several correspondent banks before reaching the destination account. Each intermediary may apply a small fee or add to the transfer time.

To simplify the process, international wires for Canadian businesses should use trusted foreign exchange providers. Platforms like MTFX offer competitive exchange rates, lower fees, and faster delivery compared to traditional banks. This ensures smooth, cost-effective transfers for global business payments.

How MTFX simplifies international wire transfers

MTFX makes sending and receiving money across borders simple, fast, and affordable. Designed for both individuals and businesses, it helps you manage every international wire transfer with confidence and ease.

1. Competitive exchange rates and low fees

MTFX offers better exchange rates than most traditional banks. You save more on every transfer, especially for large payments. With lower fees and no hidden markups, you keep more of your money. Whether sending funds to suppliers or clients abroad, MTFX makes cross-border wire transfers more cost-effective and transparent.

2. Real-time tracking and full visibility

Transparency matters when moving money globally. MTFX provides clear tracking for each transfer from start to finish. You can see when your payment is sent, processed, and received. This helps businesses stay organized and manage international transactions more efficiently.

3. Smart digital tools for accuracy and speed

MTFX tools make your transfers secure and precise. The live exchange rate calculator helps you check the latest rates before confirming any payment. The IBAN and SWIFT validation tools reduce the risk of failed transactions by verifying recipient details instantly. These features make every transfer faster and more reliable.

4. Secure online platform for global payments

The MTFX online payment platform allows you to send money safely from anywhere. Built with strong encryption and compliance systems, it ensures each transaction meets global security standards. For international wires for Canadian businesses, this means peace of mind and faster delivery every time.

5. A smarter solution for global success

With MTFX, you gain access to better rates, faster transfers, and full transparency. Businesses can manage cross-border payments more efficiently, saving time and money.

Rethink how you move money globally

Understanding how international wire transfers work helps you make better financial decisions. It allows you to plan ahead, reduce fees, and avoid unnecessary delays. By knowing what details matter and which platforms offer real value, you can send money with greater confidence.

Traditional banks often charge high fees and take longer to process cross-border wire transfers. Modern solutions like MTFX make the process faster, more transparent, and cost-effective. You get real-time rate tracking, secure payment handling, and access to a global network built for business efficiency.

Open an MTFX account today to send and receive international payments securely with better exchange rates. It’s the smart way to move your money globally.

FAQs

1. What is an international wire transfer?

An international wire transfer is a secure way to send money electronically between banks in different countries. It’s commonly used for cross-border payments, supplier invoices, and other global transactions.

2. How do international wires work?

International wires move through a network of banks, often using the SWIFT system. The sender’s bank sends the payment to one or more intermediary banks before it reaches the recipient’s account.

3. What are intermediary banks in international wire transfers?

Intermediary banks help process payments between banks that don’t have a direct relationship. Each intermediary wire transfer step may include small processing fees or extra time for delivery.

4. How long do international wire transfers take from Canada?

Most international wires from Canada take one to five business days. The time depends on factors such as destination country, currency type, and the number of intermediary banks involved.

5. What are international bank wire fees?

Fees vary by provider and may include sending fees, intermediary fees, and receiving bank charges. Traditional banks often add hidden costs through exchange rate markups. Using trusted FX platforms can help avoid these extra charges.

6. What’s the difference between SWIFT and local payment networks for wires?

SWIFT international wires use a global messaging system that connects thousands of banks worldwide. Local payment networks, such as SEPA in Europe or ACH in the US, are used for domestic or regional transfers and are usually faster and cheaper.

7. How can Canadian businesses avoid hidden charges on international wire transfers?

To avoid hidden fees, businesses should compare exchange rates, check for intermediary costs, and use transparent providers like MTFX that offer upfront pricing and live FX rates.

8. How to set up an international wire transfer for Canadian businesses?

Gather recipient details such as IBAN, SWIFT/BIC code, and bank address. Enter them on your online platform and confirm all details before sending. MTFX helps Canadian businesses streamline cross-border wire transfers with lower costs and faster processing.

9. Are international wires for Canadian businesses secure?

Yes, international wires use encrypted banking channels and global compliance checks. Platforms like MTFX also offer real-time tracking and secure verification to ensure safe and transparent transfers every time.

Open an MTFX account today to send and receive international payments securely with better exchange rates. It’s the smart way to move your money globally.