SWIFT

What SWIFT is

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It is a member-owned cooperative that provides a secure, standardized messaging network for financial institutions. SWIFT messages carry payment instructions and details between banks. The network does not hold your money or itself transfer funds.

That distinction matters when you pay an overseas supplier. Your bank sends instructions through SWIFT, while banks move the funds through their accounts. Intermediary banks can join the chain when your bank and the recipient’s bank do not have a direct connection.

SWIFT carries the payment instructions, while banks move the money and determine the fees.

How a SWIFT transfer works

You provide your bank with the recipient’s account details and bank identifier. The bank sends a payment message to the receiving bank, directly or through intermediary banks. The receiving bank then processes the transfer and credits the recipient’s account. The account number is usually an IBAN outside the United States, but requirements depend on the destination country.

International transfers through banks commonly take one to five business days. Cut-off times, weekends, holidays, compliance reviews, currency processing windows, and intermediary banks can add delays. A payment sent after your bank’s daily cut-off starts processing the next business day.

What it means for your costs

SWIFT charges participating financial institutions to use its network. Your bank decides what fees to pass on to you, and intermediary banks can deduct additional fees from the payment. US sending-bank initiation fees commonly run $15 to $50 per transfer as of 2026. Currency conversion adds another cost: a 2026 estimate puts foreign-exchange costs at 3% to 5% of the payment amount. These are bank-transfer costs, separate from your card-processing fees.

The fee option affects who pays. With OUR, you cover the transfer fees and the recipient is meant to receive the full amount. With BEN, the recipient covers fees. With SHA, you cover your bank’s sending costs and the recipient covers receiving and conversion costs. Intermediary deductions can still affect the final amount, so a supplier invoice for $10,000 does not guarantee the supplier receives $10,000.

What the SWIFT code identifies

A SWIFT code, also called a BIC, identifies a financial institution in an international transfer. The code has 8 or 11 characters: four for the institution, two for the country, two for the location, and an optional three-character branch identifier. It identifies the institution, not the recipient’s individual account. An IBAN identifies an account where that format is used.

Use the recipient bank’s exact code for the currency and destination involved. An incorrect code or account detail can delay a payment or send it for manual repair. SWIFT codes are not US routing numbers, and a transfer to or from the United States can require both types of bank information.

What you can actually change

1. 01
   Confirm the bank details. Get the recipient’s SWIFT code and account details directly from the recipient’s bank. Match the code to the payment currency and destination.
2. 02
   Compare the full cost. Before sending, check your bank’s sending fee, currency-conversion rate, and whether intermediary fees are deducted. Record whether you selected OUR, BEN, or SHA.
3. 03
   Plan around cut-offs. Check your bank’s cut-off time and allow one to five business days for delivery. Send earlier when a supplier deadline, weekend, or holiday is involved.

Frequently asked questions