INTERNATIONAL BANK WIRES & TRANSFERS OVERVIEW: WHAT YOU NEED TO KNOW
Written By
Andrew Parker
EVP, Head of Global Treasury Management
In today’s global economy, sending and receiving money across borders has become a necessity for domestic businesses conducting international transactions.
Understanding international bank wires and transfers is essential for making safe, timely, and cost-effective payments.
This guide offers a comprehensive overview of how international wires work, the difference between wires and other transfer methods, and how to choose the right provider or banking partner.
What Is an International Bank Wire Transfer?
An international wire transfer is an electronic transfer of funds from one bank account to another across international borders. These transfers are typically routed through a network like the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and are one of the most secure and regulated ways to send money globally.
How Do International Bank Wires Work?
The process for sending a wire transfer internationally typically involves:
- Initiation
You visit your bank (online, in person, or via mobile app) to provide details about the recipient, such as:- Full name and address
- Bank name and address
- Account number or IBAN
- SWIFT/BIC code
- Bank Communication via SWIFT
Your bank communicates with the recipient’s bank via the SWIFT network or a similar secure messaging system. Intermediary or correspondent banks may be involved in routing the funds. Banc of California is a correspondent bank, which allows the organization to execute financial transactions on behalf of other institutions or companies. - Conversion and Delivery
If the currencies are different, the sending bank typically performs a foreign exchange conversion. The recipient then receives the funds, usually within two business days.
How Long Do International Transfers Take?
International wires aren’t instant. Depending on the banks and countries involved, the process can take:
- 1–2 business days for major currency routes (e.g., USD to EUR or GBP)
- 3–5 business days for less common corridors or when intermediary banks are involved
- Delays can occur due to incorrect recipient info, compliance checks, or holidays
If you need to send funds quickly, they can potentially be credited for same-day settlement depending on the currency pair and time of day.
Important Considerations Before Sending an International Wire
Double-Check Recipient Details
Mistakes can delay your transfer or send it to the wrong account. Always confirm:
- The recipient’s SWIFT code
- The correct IBAN or account number
- The name as it appears on the recipient’s account
Most banks have daily cutoff times for wire processing. Sending after the cutoff may delay your transfer by a day.
Understand the Benefits of Utilizing Foreign Currency
Determine whether it is advantageous to make international payments in foreign currency vs. USD. Often the benefits of paying in foreign currency include gaining transparency into the exchange rate, shortening the time to credit funds, and earning discounts with vendors.
Watch for Compliance and KYC Checks
Large or frequent international transfers may trigger compliance reviews for anti-money laundering (AML) or know-your-customer (KYC) regulations. Be prepared to provide ID or documentation for the source and purpose of funds.
International Banking
Securing an international banking partner is about partnering with a financial institution that supports your vision. With the right banking partner, you’ll enjoy a smoother process, more reliable disbursements, and fewer surprises along the way.
Explore Banc of California’s International Banking services to learn whether Banc of California might be right for your business.
Bonus Tip: Consider Multicurrency Accounts
If you regularly send or receive money in different currencies, consider opening a multicurrency account. Many banks offer this feature, allowing you to hold, convert, and transfer funds in multiple currencies.
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