SWIFT - Bank Wire's Key To Transfer Money Overseas
When you go to the bank for transfer money overseas
with bank wire, you always ask to fill in the SWIFT code of your payee bank destination in the bank wire form.
So, what is S.W.I.F.T?
S.W.I.F.T stands for Society for Worldwide Interbank Financial Telecommunication. In 1973, banks still communicated via telex, not very secure, minimum standards and not automated. They could have received more or less 10.000 telexes a day. That's a huge for manual job. Then 239 banks from 15 countries formed a cooperative to automate the telex. S.W.I.F.T has changed the process more efficient, reliable and secure.
In SWIFT User Hand Book, they guarantee 30-minute transit time to deliver the message to its destination. Recently that transit time averages less than 20 seconds.SWIFT
is the financial industry-owned co-operative supplying secure, standardised messaging services and interface software to 7,800 financial institutions in more than 200 countries. SWIFT's worldwide community includes banks, broker/dealers and investment managers, as well as their market infrastructures in payments, securities, treasury and trade.
In order to ensure error-free identification of parties in automated systems, S.W.I.F.T.
developed the Bank Identifier Code (BIC).
The Bank Identifier Code is a unique address which, in telecommunication messages,
identifies precisely the financial institutions involved in financial transactions.
S.W.I.F.T BIC have 8 or 11 characters which represent :
B A N K C C L LPosted by Rianto, Eko
- The first 4-character code digits BANK, is Bank Code, for example : CENA
- CC, is 2-character code representing Country Code, such as US, UK, AU, ID, etc
- LL is Location Code, 2-character code which may be alphabetical or numerical, represent city, state, province or time zone where the bank office is located.
Branches which are identified by an 11-character BIC neither have a S.W.I.F.T. interface nor do they have a direct connection to the S.W.I.F.T. network. They use the S.W.I.F.T. interface and S.W.I.F.T. network connection of the institution with the corresponding 8-character BIC.
Major Ways to Transfer Money Overseas
The options for transfer money overseas are:Bank Transfer :
- Wire Transfer (cash deposit and saving account deduction),
- Bank Draft commonly known as Check
- Foreign Draft
Higher Risk options
- National Postal Mail Company, such as US Postal Service
- Western Union
Internet Payment Processor :
Posted by Rianto, Eko