The time taken for wire transfers depends on a lot of factors. Let us take a look
Let us first see what wire transfer means. Wire transfer means transferring money from one bank to another. The transfer happens electronically. Wire transfers can be both domestic and international. Mostly, people use wire transfers to send money overseas.
How do wire transfers work?
Before trying to know how fast is a wire transfer, we need to understand how they work. Most wire transfers happen through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. The SWIFT network is a messaging protocol. This network has over 11,000 banks in 200-plus countries. The SWIFT network is essentially used to send information from one bank to another. Wire transfer instructions are also sent through SWIFT. Such information may not be passed directly from one bank to another. Intermediary banks may be involved. When money is sent from one bank to another, no actual transfer of money takes place. The sender’s account is debited, and the receiver’s account is credited.
How long does a wire transfer take bank to bank?
Domestic wire transfers happen in a day or two.
But, how long does an international wire transfer take? There are quite a few steps online and offline. First and foremost, you need to jot down the necessary data. The next step is to fill up a wire transfer form. If you are doing it online, the process will take only a few minutes. The offline process takes longer.
Banks process wire transfers only on business days within the cut-off time. The normal time to complete the transfer is 24 working hours, however, we recommend you check with your bank about it.
Nowadays, most banking processes happen online. One would think that the money will reach the recipient’s bank account instantly. However, the answer to how long does a wire transfer take is not ‘an instant’.
Wire transfer instructions pass through the SWIFT network. Intermediary banks may also be involved. The money may pass through up to three intermediary banks. Then, it finally reaches the recipient’s bank in a few days’ time. Hence, international wire transfers may take up to five working days. In some cases, they may take more time.
Other factors that can affect wire transfer time: We have discussed a normal wire transfer process. Some other factors can also delay its course.
Error in entering details: This would include several details like account numbers and SWIFT codes. If these details are entered incorrectly, the wire transfer will get inordinately delayed.
Business holidays and weekends: Bank holidays tend to delay wire transfers. Different countries have different bank holidays. This, in addition to weekends, can delay the time it takes for a wire transfer. The number of intermediary banks or currency conversions may also influence the speed of a wire transfer. Hence, when you wonder how long does a wire transfer take, consider pre-planning as a part of the response.
Want to do a wire transfer? Click here to begin.
