GLOSSARY

Bank transfer

What is a bank transfer?

A bank transfer refers to the electronic transfer of money from one bank account to another. Such transfers can take place either within the same bank or between different banks and are among the most commonly used methods worldwide for processing payments between individuals and companies.

Types of bank transfers

Broadly speaking, there are domestic and international transfers.

Domestic transfers are executed through local payment systems such as SEPA in Europe, ACH in the United States, or Faster Payments in the UK. These transactions are usually faster and less expensive than international transfers.

International transfers, by contrast, are generally processed via the SWIFT network and often involve higher fees, longer settlement times, and intermediary banks along the way.

How a bank transfer works

The process of a bank transfer is largely the same everywhere. The sender provides details such as IBAN, amount, currency, and payment reference. The bank checks the information and routes the payment through the relevant network to the recipient’s bank, which credits the funds to the account. Depending on the network, this may happen in real time with SEPA Instant or Faster Payments, or it can take several hours to days with traditional SWIFT transfers.

Challenges of traditional bank transfers

Traditional transfers are not always ideal for businesses. International payments are often costly, with SWIFT fees reaching several percent of the transaction. Settlement can be slow, intermediary banks add further expense, and limited transparency in exchange rates and conversions creates extra financial strain.

Bank transfer: Good to know for SMEs

SMEs are especially vulnerable to the downsides of traditional bank transfers. High fees and long settlement times can quickly impact their liquidity, while reliable and transparent processes are essential for planning security. Fintech solutions offer a clear advantage by lowering costs, accelerating payments, and easing the administrative burden.

Fast, low-cost transfers with amnis

Whether domestic or international, you can send and receive payments in over 20 currencies with local IBANs in CHF, EUR, GBP, CZK and DKK – at lower costs and higher speed than traditional banks. Real-time tracking, fewer intermediaries, and automated workflows make your transfers as easy as sending an email. amnis gives you full control and flexibility, so you can focus on growing your business instead of chasing payments.

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ACH

ACH, or Automated Clearing House, is a local payment route in the United States that facilitates electronic money transfers between banks. It requires a local bank account or the use of local payment providers. ACH payments enable financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard. It’s commonly used for direct deposits, bill payments and other bank-to-bank transfers within the United States.

ACH payment

ACH payments are processed through the local ACH network in the United States, requiring a local bank account or the use of local payment providers. This method allows financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard.

Balance of payments

The balance of payments is a financial statement that summarizes all economic transactions between a country and the rest of the world over a specific period. It records trade in goods and services, cross-border investments, and financial transfers. A positive balance indicates that a country exports more than it imports, while a negative balance shows the opposite.

BIC (Bank Identifier Code)

The Bank Identifier Code (BIC) is an internationally valid bank sort code defined by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Since the BIC code is issued by SWIFT, it is often also referred to as the SWIFT code.

Cashless payment

A cashless payment refers to any financial transaction where no physical cash is exchanged. Instead, the payment is processed using digital or electronic methods such as bank transfers, payment cards, mobile apps, or online platforms. It allows money to move from one account to another without the need for coins or banknotes.

FPS (Faster Payment System)

The Faster Payment System (FPS) is a UK payment scheme that enables businesses, individuals, and institutions to send and receive sterling payments in near real time, 24/7. Transactions are typically processed within seconds, making FPS one of the fastest domestic payment systems in the world.

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About amnis

amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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