What is the duration of an international bank transfer?

Duration of international transfers: Factors and expectations

As technology has advanced significantly, users expect everything to be done quickly. Financial transactions are no exception to this rule. If you want to make an international transfer, you want to know how long the international transfer will take. Unfortunately, there is no definitive answer to this question.

There are several factors that affect the duration of international transfers. However, the usual time for transferring funds to foreign banks ranges from one to four business days.

"Sometimes, the banks receiving the funds need to confirm the necessary information and the amount of money to prevent fraud. One drawback is that the time for international transfers is long, and the recipient may not be able to access the transfer even after two days of receiving it from the receiving bank. Larger amounts are subject to more thorough scrutiny, and this more detailed control requires more time."

Why Isn't International Transfer Time Short?

Now, in 2024, most financial transactions are conducted online. So why aren't international bank transfers instantaneous? The simple answer to this question is fraud. With the large volume of transfers through major banks, it is clear that there will be a delay from the sending bank's side during international transfers. Banks deliberately keep their speed low for these transfers and undergo a series of processes to prevent fraud and money laundering. Each country has established its own rules for transferring funds.

Sometimes, the banks receiving the funds also need to confirm the necessary information and the amount of money to prevent fraud. Although going through these confirmation processes, like translation cover letters, is beneficial for both parties involved, the drawback is that the international transfer time is long, and the recipient may not receive the transfers even after two days of receiving the funds. Larger amounts are subject to more thorough scrutiny, and this more detailed control requires more time.

International Money Transfers

What is the Role of the Intermediary Bank in This Transfer?

When the currency being sent differs from the currency of the receiving country, the assistance of an intermediary bank is required. International bank transfers are usually conducted between banks that do not have financial relationships with each other. When there is no agreement between the sending bank and the receiving bank, a third bank assumes the role of intermediary and deducts an amount as intermediary bank fees from the amount. For example, a bank in Dublin that is supposed to work with a sending bank in Thailand must establish a working relationship with this bank. When the assistance of an intermediary bank is requested, transfers are usually (but not always) conducted with a slight delay.

Common Reasons Associated with International Wire Transfers

The SWIFT international payment network is one of the largest financial messaging systems in the world. Most cross-border payments outside Europe use the SWIFT system, which employs BIC and IBAN for authentication and financial transactions in global banks.

If the timing of the international wire transfer is important, all banking information involved in the transaction must be correct. Most often, delays in international wire transfers are due to incorrect information from the sending bank, leading to the wire transfer arriving at the receiving bank with several days' delay. Occasionally, correspondence with the issuing bank to obtain the correct information and resend the funds has caused delays of several weeks during international wire transfers.

International Financial Transfers

Let's take a look at the factors involved in the time taken for international transfers:

Method of Payment

The most common way to pay international transfers is by obtaining assistance from the bank, which can be considered the easiest method due to its advantages—such as no issues with currency or distance—and also the international wire transfer time with its assistance is very short. If you want to make unnecessary payments in euros and within Europe, the SEPA payment method is the best possible way.

Currency

Common world currencies such as the euro, British pound, US dollar, and Canadian dollar are the most commonly used currencies in international transfers. This means that if transfers are made in these currencies, the process will be very quick and easy. Transfers involving rare and less commonly used currencies take longer to reach the destination bank.

Weekends and Holidays

If you make an international wire transfer during weekend closing hours, you will have to wait until the following Monday for the transfer process to be completed. If the process is initiated late during the weekend, the transfer will be delayed for two or even three days until the banks' holidays are over. When considering the international money transfer time, you should consider the business days from the time the wire transfer is sent to when it is received by the destination bank. (Add holidays and weekends to this transfer time.)

Bank Delay Time

When calculating the time required to receive your request, the duration of the international wire transfer, and the start of the payment process, be aware of the bank's delay time. Some banks have set a delay time for certain payment receipts and daily transactions, meaning the faster the transaction is made, the faster it is completed. Requests referred to the bank at the end of the business day are postponed until the next business day and may take more days for the payment process. If transfer time is important to you, be aware of the bank's delay time.

Time Difference

If there is a significant time difference between the country sending the wire transfers and the receiving country, you should expect a delay in receiving the wire transfers. For example, if a bank in Ireland requests to send a postal transfer to a bank in the United States, it must wait until the banks in the United States reopen.