Sending money to another country through your bank is one of the most common ways to pay someone internationally. Whether you are paying a contractor overseas, sending money to family, or settling an invoice from a foreign supplier, an international bank transfer moves funds directly from your bank account to a recipient’s bank account in another country.
Bank transfers are reliable, widely accepted, and work between almost every country. But they also come with fees, exchange rate margins, and processing times that vary depending on the banks and currencies involved. Understanding the steps and the costs before you start helps you avoid surprises and compare your options.
This guide walks through every step of an international bank transfer, explains the key codes and numbers you need, and shows you where the hidden costs can add up.
What Is an International Bank Transfer?
An international bank transfer is an electronic payment that sends money from a bank account in one country to a bank account in another. In most cases, the transfer moves through the SWIFT network, a global messaging system that banks use to communicate payment instructions to each other. Your bank does not physically move cash. It sends a series of messages that instruct the recipient’s bank to credit the recipient’s account.
Because the money may pass through intermediary banks before reaching the destination, the process can take anywhere from one to five business days. Each bank in the chain may deduct a small fee, which is one reason the recipient may receive less than the amount you sent.
International bank transfers go by several names depending on where you live. In the United States, they are often called wire transfers. In Europe and the UK, they may be called SEPA transfers (within the eurozone) or international payments. The core process is the same: your bank sends instructions, and the recipient’s bank receives them.
What You Need Before You Start
Gather the following information before initiating the transfer. Having everything ready prevents delays and reduces the chance of a failed or returned payment.
Recipient Information
- Recipient’s full name exactly as it appears on their bank account
- Recipient’s bank name and branch address
- Recipient’s bank account number
- Recipient’s bank identifier code (SWIFT/BIC or IBAN)
- Recipient’s residential address (required by some banks for compliance)
Your Information
- Your full bank account number
- Your bank’s routing number or sort code
- A valid government-issued ID on file with your bank (most banks verify this before allowing international transfers)
- The reason for the transfer (banks are required to ask under anti-money-laundering rules)
Payment Details
- The amount you want to send
- The currency you want the recipient to receive
- Whether you or the recipient will pay the transfer fees (explained below)
- Any reference or invoice number to include with the payment
Key Codes and Numbers Explained
SWIFT/BIC Code
A SWIFT code, also called a Bank Identifier Code or BIC, is an 8 to 11 character code that identifies a specific bank worldwide. It tells the sending bank which receiving bank to route the payment to. The format is: 4 letters for the bank, 2 letters for the country, 2 characters for the city, and an optional 3-character branch code. For example, a SWIFT code might look like BNPAFRPP or DEUTDEFF.
IBAN
An International Bank Account Number or IBAN is a standardized format for identifying a bank account internationally. It is used primarily in Europe, the Middle East, and parts of Africa and the Caribbean. An IBAN starts with a two-letter country code, followed by two check digits, then a long string of numbers that includes the domestic bank code and account number. A typical IBAN might look like FR1420041010050500013M02606.
If the recipient’s country uses IBANs, you will need it. If the recipient is in the United States, you will typically need their account number and their bank’s SWIFT/BIC code instead, since US banks do not use IBANs.
Routing Number vs SWIFT
A routing number identifies a bank within the United States. It is used for domestic transfers. A SWIFT code identifies a bank internationally. For an international transfer from a US bank, you may need both: your routing number for your account and the recipient’s SWIFT code for their bank abroad.
Step-by-Step: How to Make an International Bank Transfer
Step 1: Log In to Your Bank’s Online Portal or App
Most major banks allow international transfers through their online banking platform. Log in and look for a section labeled “Transfers,” “Wire Transfers,” “International Payments,” or “Send Money Abroad.” If you do not see this option, you may need to visit a branch or call your bank to enable international transfers on your account.
Step 2: Enter the Recipient’s Bank Details
Add a new payee or recipient. Enter the recipient’s full name, bank name, account number, and SWIFT/BIC code or IBAN. Double-check every character. A single wrong digit can delay the transfer or cause it to be returned. Most banks display the recipient bank’s name and country after you enter the SWIFT code so you can confirm it matches.
Step 3: Enter the Amount and Select the Currency
Enter the amount you want to send. Choose whether you want to send in your home currency or the recipient’s local currency. If you send in your currency, the recipient’s bank will convert it. If you send in the recipient’s currency, your bank converts it before sending. The conversion method affects the exchange rate you receive and the fees applied.
Use a currency converter to check the current exchange rate before you confirm the transfer, so you know whether the rate your bank offers is competitive.
Step 4: Choose Who Pays the Fees
Most banks offer three fee options:
- OUR (you pay all fees): You pay your bank’s transfer fee and all intermediary bank fees. The recipient receives the full amount sent. This is usually the most expensive option for you but guarantees the recipient gets exactly what you intended.
- SHA (shared fees): You pay your bank’s transfer fee. Intermediary banks deduct their fees from the amount. The recipient receives the amount minus intermediary fees. This is the most common option.
- BEN (beneficiary pays all fees): All fees are deducted from the transferred amount. The recipient receives the amount minus all fees. This is the cheapest option for you but the most expensive for the recipient.
For most personal transfers, SHA is the standard choice. For business payments where the recipient needs to receive an exact amount, OUR may be preferable despite the higher cost.
Step 5: Enter the Purpose of the Transfer
Your bank will ask why you are sending money. Common options include personal transfer, gift, payment for goods or services, salary, or living expenses. This is a regulatory requirement under anti-money-laundering and counter-terrorism financing laws. Be honest and specific. If you are paying an invoice, include the invoice number in the reference field.
Step 6: Review and Confirm
Before you submit, review every detail: the recipient’s name, account number, SWIFT or IBAN, the amount, the currency, the fee option, and the exchange rate your bank is offering. Check whether the rate includes a margin above the mid-market rate. Most banks add a markup to the exchange rate, which is an additional cost on top of the stated transfer fee.
Once you confirm, the bank will process the transfer and give you a confirmation number. Save this number. It is your proof of payment and your reference if anything goes wrong.
How Long Does an International Bank Transfer Take?
Transfer times depend on the currencies, the countries, the banks involved, and whether intermediary banks are needed. Here is a general guide:
- Within the eurozone (SEPA): 1 business day, sometimes same-day
- From the US to Europe: 1 to 3 business days
- Between major currency pairs (USD, EUR, GBP, JPY): 1 to 3 business days
- To or from countries with less developed banking systems: 3 to 5 business days
- Transfers involving exotic or less-traded currencies: up to 5 business days or longer
Weekends and bank holidays in either country can add delay. Transfers initiated after the bank’s daily cutoff time are typically processed the next business day.
How Much Does an International Bank Transfer Cost?
The total cost of an international bank transfer usually includes three components:
1. Your Bank’s Transfer Fee
This is the upfront fee your bank charges to send the transfer. In the United States, outgoing international wire transfer fees typically range from $40 to $50. Some banks charge less for online transfers than for branch-initiated transfers. Premium account holders may get reduced or waived fees.
2. Exchange Rate Margin
This is the difference between the mid-market exchange rate and the rate your bank offers. Banks add a markup, typically 2% to 4% above the mid-market rate, as a profit margin on the currency conversion. On a $1,000 transfer, a 3% margin costs you an extra $30. This is often the largest hidden cost of an international bank transfer.
3. Intermediary Bank Fees
When a transfer passes through one or more intermediary banks, each may deduct a fee, typically $10 to $25 each. You may not see these fees in advance. They reduce the amount the recipient receives. Choosing the OUR fee option means you pay these upfront instead.
Receiving Bank Fees
The recipient’s bank may also charge an incoming international transfer fee, typically $10 to $15. This is deducted from the received amount.
Total Cost Example
Sending $1,000 from the US to Europe, with typical fees:
- Bank transfer fee: $45
- Exchange rate margin (3%): $30
- Intermediary bank fee: $15
- Receiving bank fee: $10
- Total cost: $100, or 10% of the transfer amount
For larger transfers, the exchange rate margin becomes the dominant cost. On a $10,000 transfer, a 3% margin costs $300. Comparing your bank’s rate against the mid-market rate before sending can reveal whether a specialist money transfer service would be cheaper. See our guide on how to send money internationally for a comparison of bank transfers versus other methods.
International Bank Transfer vs Other Money Transfer Methods
Bank transfers are not always the cheapest option. Depending on the amount, the currencies, and the speed you need, alternatives may save money:
- Online money transfer services (Wise, Revolut, Remitly): Often offer rates closer to the mid-market rate with lower fees, especially for smaller amounts. Transfer times can be faster.
- Digital wallets (PayPal, Payoneer): Convenient for small amounts but may have higher fees and less favorable exchange rates.
- Cash pickup services (Western Union, MoneyGram): Useful when the recipient does not have a bank account, but fees can be high.
- Travel money cards: Useful for spending abroad but not designed for person-to-person transfers. See our travel money card comparison for options.
For large transfers above $5,000, bank transfers may still be competitive because the flat fee becomes a smaller percentage of the total. For smaller transfers under $1,000, specialist services are often cheaper due to lower exchange rate margins.
Common International Bank Transfer Mistakes
Entering a Wrong SWIFT or IBAN
A single incorrect character can cause the transfer to be rejected or sent to the wrong bank. Most banks validate the format but cannot verify the account exists. Always confirm the code directly with the recipient.
Ignoring the Exchange Rate Margin
The stated transfer fee is visible upfront. The exchange rate margin is not always clearly disclosed. Ask your bank for the exchange rate they will apply and compare it to the mid-market rate to see the true cost.
Not Accounting for Intermediary Fees
If you choose SHA (shared fees), intermediary banks will deduct fees from the amount. The recipient may receive less than expected. If the exact amount matters, choose OUR and pay all fees upfront.
Sending on a Weekend or Holiday
International transfers are only processed on business days in the sending and receiving countries. Sending on a Friday evening means the transfer starts processing on Monday.
Not Keeping the Confirmation Number
If the transfer is delayed or does not arrive, your bank will ask for the confirmation or reference number. Without it, tracing the payment is much harder.
Tips for a Smooth International Bank Transfer
- Verify all recipient details directly with the recipient, not from memory or an old email.
- Check the exchange rate and total cost before confirming, not after.
- Initiate transfers early in the week to avoid weekend delays.
- Use the OUR option when the recipient must receive an exact amount.
- Keep your confirmation number and receipt until the recipient confirms receipt.
- For recurring transfers, ask your bank about batch or scheduled international payments to save time.
- Compare the total cost (fee plus exchange rate margin) against a specialist service before sending large amounts.
Frequently Asked Questions
What is the difference between a SWIFT code and an IBAN?
A SWIFT code identifies a bank. An IBAN identifies a specific bank account at that bank. For transfers to countries that use IBANs, you need both the recipient’s IBAN and their bank’s SWIFT/BIC code. For transfers to the United States, you typically need the recipient’s account number and their bank’s SWIFT code, since US banks do not use IBANs.
How long does an international bank transfer take?
Most international bank transfers arrive within 1 to 3 business days for major currencies. Transfers to countries with less developed banking systems or involving less-traded currencies can take up to 5 business days. Weekends and bank holidays add delay.
Why did the recipient receive less than I sent?
Three things reduce the received amount: the exchange rate margin your bank adds, intermediary bank fees deducted along the way, and the receiving bank’s incoming transfer fee. Choosing the OUR fee option ensures intermediary fees are paid upfront, but the exchange rate margin still applies.
Is an international bank transfer safe?
Yes. Bank transfers are one of the most secure ways to send money internationally. The SWIFT network uses encrypted messaging between banks, and banks verify sender identity before allowing international transfers. The main risk is sending to the wrong account due to incorrect details, so always verify recipient information directly.
Can I cancel an international bank transfer after sending it?
It depends on how far the transfer has progressed. If the recipient’s bank has not yet credited the account, your bank may be able to recall the transfer. Once the funds are credited, a reversal requires the recipient’s bank to agree to return the funds, which is not guaranteed. Act quickly and contact your bank immediately if you need to cancel.
What is the cheapest way to send money internationally?
It depends on the amount and the currencies. For transfers under $1,000, online money transfer services are often cheaper than banks because they charge lower fees and offer exchange rates closer to the mid-market rate. For large transfers above $5,000, bank transfers can be competitive because the flat fee is a smaller percentage. Always compare the total cost, not just the headline fee.
Takeaway
An international bank transfer is a reliable way to send money across borders, but the total cost goes beyond the stated transfer fee. Exchange rate margins, intermediary bank fees, and receiving bank charges can add up to 5 to 10 percent of the transfer amount. Before you send, gather the correct codes, compare your bank’s rate against the mid-market rate, choose the right fee option for your situation, and keep your confirmation number. For larger or frequent transfers, comparing a specialist money transfer service against your bank can save a meaningful amount.