SWIFT payment definition
A SWIFT payment is an international money transfer made through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. The SWIFT network doesn’t actually transfer funds, nor is it a banking system, Rather, it sends payment orders between banks using SWIFT codes.
When you make a SWIFT payment, the money is sent from your bank to the recipient’s bank, potentially passing through intermediary banks if there’s no direct relationship between the two. SWIFT payments come, therefore, at higher costs, since banks usually charge transfer or recipient fees.
What do the digits in a SWIFT code stand for?
All SWIFT codes generally follow a similar structure, which can be described as follows:
- The first four characters represent the bank code.
The next two characters stand for the country code. - Next is the location code, which can be a mix of letters and numbers.
- Optionally, a three-character branch code may also be included.
SWIFT transaction fee structures explained
The type of SWIFT transaction (BEN, OUR or SHA) determines who incurs the fees:
- BEN: The recipient covers all costs, so the amount they receive is reduced by the fees charged by the involved parties.
- SHA: Recipient and sender share the costs, whereby each party will be charged by their respective bank.
- OUR: The sender bears all costs.
This results in a unique code that is used for international money transactions.
SWIFT payment: Good to know for SMEs
Faced with high fees and challenges in tracking funds after initiating international payments, SMEs look for cheaper and faster alternatives to send money abroad. Alternative transfer methods include local payment schemes, such as the European SEPA or the American ACH.
Send and receive funds worldwide
At amnis, we integrate various payment systems to offer SMEs optimal service. Through our local networks, we can process payments in local currencies in most countries and provide SWIFT transfers for fast cross-border transactions. You can send money to over 200 countries and receive funds from 180+ countries through SWIFT. The country list shows all countries where SWIFT transfers are available.
Explore related topics
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.
An MT103 is a standardised payment message issued by the bank within the SWIFT network, serving as an official confirmation of a completed transfer. It includes all relevant payment details, such as the date, amount, currency, and information about the sender and recipient. The MT103 document thus provides a reliable basis for transactions requiring payment confirmation, such as deliveries or services.
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.