A Guide to Receiving International Wire Transfers in 2024

In today’s world, receiving money from other countries is important for businesses and freelancers. Whether you’re getting paid for work or closing a deal, understanding how to receive international payments is key.

We've learnt from our users that they face high fees when you transfer funds internationally. And often aren’t sure where your money is delayed. In this guide, we’ll explain what wire transfers are, how they work, and how you can lower your costs when receiving money from abroad. Let’s make receiving your global payments simple and clear.

Understanding International Wire Transfers

What is an International Wire Transfer?

An international wire transfer is also known as a bank transfer. It is an electronic way to send money from one country to another. It's a reliable and secure method for cross-border payments, allowing you to transfer funds to friends, family, employees, or businesses abroad. This type of transfer uses the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network, which connects over 11,000 banks in more than 200 countries. They are unique SWIFT codes (BIC codes) that banks and financial institutions use globally to process cross-border payments.

How International Wire Transfers Work

The process of an international wire transfer involves several steps:

1. Initiation: You start the transfer through your bank, providing details such as the recipient's name, bank information, and the amount to be sent.
2. Interbank Communication: Your bank uses the SWIFT network to send transfer instructions to the recipient's bank.
3. Intermediary Banks: Depending on the route, intermediary banks might be involved in moving the funds closer to the recipient's bank.
4. Currency Exchange: If the transfer involves different currencies, your bank will convert the funds at their exchange rate.
5. Completion: Once the funds reach the recipient's bank, they're credited to the specified account.

International wire transfers typically take 2-5 business days to complete. The process is monitored by the Office of Foreign Assets Control to prevent money laundering and ensure compliance with government sanctions.

Key Information Required for Global Money Transfer

To ensure a smooth international wire transfer, you'll need to provide the following information:

• Recipient's full name and address
• Recipient's bank name, address, and country
• Recipient's account number and type (savings/checking)
• Bank's SWIFT code or BIC (Bank Identifier Code)
• Reason for transfer (optional)

It's crucial to verify all information before initiating the transfer, as wire transfers are generally not reversible.

Fees and Considerations

International wire transfers come with various fees:

• Sending Fee: This is charged by the sender's bank and typically ranges from $35 to $50 for international transfers.
• Receiving Fee: The recipient's bank may charge a fee, usually around $15, for processing the incoming transfer.
• Intermediary Bank Fees: If intermediary banks are involved in the transfer, they may also charge fees, which can vary depending on the banks and the transfer route.
• Foreign Exchange Fee or Markup: When currency conversion is involved, banks often add a markup to the exchange rate, which can significantly impact the amount received. This markup can range from 3% to 5% of the transferred amount.

Additionally, be aware that banks often add a markup to the exchange rate, which can impact the final amount received.

How can I receive international payments into my bank account in India?

Gather Necessary Information

To receive an international wire transfer, you need to collect specific details:

1. Your full name and address
2. Your bank account number
3. Your bank's name, address, and country
4. Your bank's SWIFT/BIC code
5. IBAN (if applicable in your country)

For some transfers, you might also need to provide an intermediary bank's details .

Provide Details to the Sender

Share the gathered information with the sender. Make sure they have:

• Your correct account details
• The right SWIFT/BIC code for your bank
• The correct IBAN (if needed)

Double-check all information to avoid delays or lost funds.

Notify Your Bank

Let your bank know you're expecting an international wire transfer. This can help:

• Speed up the process
• Ensure the bank is prepared to handle the incoming funds
• Address any potential issues proactively

Some banks might require additional documentation for large transfers.

Track the Transfer

Once the transfer is initiated, you can track its progress:

1. Ask the sender for the Federal Reference number or SWIFT tracking number.
2. Use your online banking platform to check for incoming transfers.
3. Contact your bank's customer service for updates.

Remember, international transfers typically take 2-5 business days to complete. If there's a delay, you can:

• Request an MT103 document for SWIFT network transfers.
• Ask the sender to initiate a wire trace using the reference number.

By following these steps and staying proactive, you'll ensure a smooth process for receiving your international wire transfer.

Fees and Exchange Rates

Common Fee Structures

When receiving international wire transfers, you'll encounter various fees. Banks typically charge between $30 to $50 for international wire transfers. This fee structure often includes:

1. A flat fee for the transfer
2. Exchange rate markups
3. Potential intermediary bank fees

Money transfer services may offer more competitive rates, charging either a flat fee or a percentage-based fee. It's crucial to understand that fees can differ based on how you initiate the transfer. Online transfers tend to be the cheapest, while branch or phone-initiated transfers can add around $10 or more to your fee.

Understanding Exchange Rate Markups

Exchange rates play a significant role in the cost of international transfers. Banks often add a markup to the mid-market (interbank) rate when converting currency for consumers. For example, if you send $1,000 to Europe and the mid-market rate is 1 USD = 0.90 EUR, you might expect the recipient to get 900 EUR. However, with a bank markup, the rate might be 1 USD = 0.85 EUR, resulting in the recipient getting only 850 EUR.

How to Minimise Costs

To reduce the expenses associated with international wire transfers:

1. Use online transfers when possible to avoid higher fees for branch or phone services.
2. Consider non-bank services, which often charge lower fees and offer better exchange rates.
3. Explore the option of setting up a local currency account in the sender's country to avoid conversion charges.
4. For recurring transfers, look into your bank's bill pay or other transfer services, which can be cheaper for amounts within the bank's limits.
5. Some banks offer discounts for sending wires online without assistance from a customer service representative.

By understanding these fee structures and employing cost-saving strategies, you can significantly reduce the expenses associated with receiving international wire transfers.

Cut Your Costs with Winvesta

Winvesta offers a cost-effective solution for receiving international payments. It provides multi-currency accounts that allow you to receive, hold, and convert foreign currencies at lower fees compared to traditional banks.

• No sign-up or maintenance fees.
• Lower transaction fees: Winvesta charges a flat fee of $3 + 0.99% for receiving payments, significantly cheaper than traditional SWIFT transfers.
• Faster processing: Payments can be received in as little as one day.

Cost Comparison: Wire Transfer vs. Winvesta

Winvesta significantly reduces the costs associated with receiving international payments, making it a viable alternative to traditional wire transfers for individuals and businesses in India.

Disclaimer: The information in this blog is for general purposes only and may not reflect the latest regulations, fees, or services for international wire transfers. Please consult your bank or financial provider for specific details. Winvesta is not responsible for any discrepancies or losses due to reliance on this information. Always verify with your financial institution before initiating any transactions.