Ever found yourself staring at your screen, wondering if there's a better way to send money overseas for your business? You're not alone.
Wire transfers have long been one of the most common methods for international payments — but how do they actually work?
In this guide, we'll break down everything you need to know about sending international wire transfers. We'll cover the essential information you need from recipients (beneficiaries), what you should expect to pay in fees, and whether wire transfers with your bank are your best option for cross-border payments.
What is an international wire transfer?
An international wire transfer is a secure method of electronically moving money between banks in different countries, typically involving currency conversion.
When you send a wire transfer, your funds are like a package travelling to your recipient's front door. Just like when you send a package overseas, there are some additional considerations:
- Like a parcel, the wire transfer may require additional information to get it to where it needs to go.
- The recipient's bank account is the final destination but it may not be a direct A to B connection. This depends on whether your bank has a relationship with theirs.
- Intermediary banks are the ports and customs your package may pass through to help it reach its destination if no relationship exists.
- Payment networks like SWIFT and SEPA provide the directions, including each stop along the way.
International vs domestic wire transfers
Domestic wire transfers move money between banks or accounts in the same country. They typically process through local clearing networks or systems specific to that country, like CORE in France or the Faster Payments Service in the UK. These transfers are straightforward because they don't cross regulatory boundaries or involve currency conversion.
The result? Domestic transfers are typically faster than sending internationally since there aren't any stops along the way or time zone differences to take into account (more on this below).
International wire transfers are more complex beasts. When you send money across borders, your transfer typically moves through the SWIFT network — a messaging system connecting over 11,000 financial institutions worldwide. Here's how it works:
- Your bank sends a message to the recipient's bank, instructing them to credit your recipient's account.
- If your banks don't have a direct relationship with one another, the message passes through intermediary banks.
- Each intermediary bank in the chain processes the instruction and passes it along.
- Money doesn't physically move — the banks settle these transactions through pooled accounts they hold with each other.
This multi-step process is why international transfers often take 2-5 business days rather than hours (like a domestic transfer). It's also why they cost more. Each bank involved generally charges a processing fee and currency conversion adds another cost.
Here’s what you can expect your international fees to look like:
- Fixed transfer fees from the sending bank
- Exchange rate markups (often 4-6% above the mid-market rate)
- Processing fees for each intermediary bank involved
- Receiving fees charged by the beneficiary bank
Coming back to our package analogy, domestic transfers are like local deliveries with one driver going from A to B. International transfers involve multiple couriers, customs checks and need to be repackaged (currency conversion) along the way — naturally taking more time and money.
What information do you need to send an international wire transfer?
For most international wire transfers, here’s what you’ll need:
- The recipient's full name or business name exactly as it appears on their account
- The recipient's bank name (often the specific branch information)
- The recipient's IBAN (International Bank Account Number) or account number if IBANs aren't used in their country
- The recipient's bank's SWIFT/BIC code (Bank Identifier Code)
- The currency and amount you are sending
- The purpose of your payment, often required this for regulatory compliance
Depending on where you're sending money to and which currency you're using, you might also need:
- The recipient's business address
- The recipient's bank address (not just the name)
- Additional country-specific codes like sort codes in the UK or routing numbers in the US
Missing or incorrect information can cause your transfer to be delayed, returned or even lost in the system. Each rejected transfer might incur additional fees, so it's always worth double-checking every digit before you hit ‘send’.
How to send an international wire transfer
Once you have all of the information to hand, it's time to actually send your funds. The process itself is fairly straightforward, but your experience will vary greatly depending on the type of provider you choose.
Let's break down your two main options.
Option 1: Send with a traditional bank
Assuming you already have at least one account open with a traditional bank, this will likely be your first call. The process for sending international wire transfers with a bank typically looks like this:
- Log in to your online banking portal or visit a local branch.
- Look for a "payments" or "transfers" option to find wire transfers.
- Enter all of your recipient details, the amount you wish to send and the currency details.
- Review the exchange rate and fees (if they share this information).
- Confirm and authorise the transaction.
While using a traditional bank may seem convenient since you already have an account there — for most SMBs, it likely won't be the best option. Why are traditional banks not ideal for international payments, you ask?
While you can send money internationally with most traditional banks, it's typically just a supplementary service they support — not the core focus of their business. This means that while they can get the job done, you'll likely be able to get better rates and experience faster processing times elsewhere.
With a traditional bank, you'll typically pay a fixed wire transfer fee plus an exchange rate markup that can range from 4-6% above the mid-market rate. For larger and more frequent transfers, the costs of sending money internationally can add up quickly.
Option 2: Send with a cross-border payment provider
And then there are cross-border payment providers (like iBanFirst) that specialise in international payments. These providers are often specifically designed to help businesses move money across borders, rather than being one of many services they offer. Here's what that means for you:
- More competitive exchange rates
- Lower (or zero) fixed fees for sending payments
- More transparency around the total cost of your transfer
- More control over how and when you convert currencies
Why 10,000+ SMBs use iBanFirst to send cross-border payments
Why are thousands of small and medium-sized businesses switching to iBanFirst for their international payments? Simple: our tools and services are specifically designed for growing SMBs who regularly move money across borders.
Hold, send and receive funds in multiple currencies
With an iBanFirst multi-currency account, you can hold, send and receive funds in 25+ currencies. No more juggling multiple bank accounts and scattered balances. Your euros, dollars, pounds and any other currency you work with all live side by side, ready whenever you need them.
Track international payments in real-time
Want to know where your money actually is after you send an international payment? When you send international payments via the SWIFT network, the iBanFirst Payment Tracker shows you timestamped updates at every stage of the journey — just like a parcel! And you can share tracking links with your suppliers so they can follow along too, which means no more anxious emails asking when the payment will arrive.
Real (human) experts who support your business needs
Here's where iBanFirst really shines brightest — human FX experts. Instead of relying on chatbots or endless support tickets, you can speak to one of our dedicated account managers about all things FX, such as when and how to potentially lock in exchange rates with forward payment contracts and which risk management strategies are best for you. They understand the markets and your business.
Commonly asked questions about international wire transfers
Still got questions about international wire transfers? We've got answers. Let's tackle some of the most common questions we hear from SMBs trying to send money overseas.
Can you cancel a wire transfer after sending?
Yes, cancelling a wire transfer is possible, but it all depends on the timing.
If your transfer hasn't been fully processed yet, it's possible to submit a cancellation request, although the process can be complex. If you're working with iBanFirst, we can help you submit the request.
However, once the funds have reached the recipient's bank, cancellation becomes much more challenging and requires cooperation from the receiving institution.
This is why we always recommend double-checking all recipient details before confirming your payment. Getting a single wrong digit in an IBAN can send your payment to the wrong destination and recovery isn't always guaranteed.
Are wire transfers secure?
Wire transfers are generally a safe, reliable way to move money internationally. They use secure payment networks with strong security and compliance measures in place.
The real security risk isn't the system — it's the verification. Most occurrences of wire transfer fraud happen before the payment is sent, such as sending money to the fraudster’s account. And since wire transfers can be difficult to cancel or reverse, recovering the funds isn't always possible.
It's critical that you check the beneficiary's details before sending funds. Be cautious with unexpected messages about changing payment details — these are common red flags for potential fraud.
How long does an international wire transfer take?
International wire transfers typically take 2-5 business days to arrive with your beneficiary, but the exact timing depends on the countries, currencies and banks involved.
Why the wait? Most international wire transfers use the SWIFT network and often pass through several intermediary banks before reaching their final destinations. Each bank needs time to process and verify the payment details before sending it on to its next destination. When you initiate the payment also makes a difference. Payments made late in the day or on weekends may not start processing until the next business day, and then there are time zones and local bank opening hours to consider.
Since domestic transfers move through local payment networks like SEPA, they can often be processed same or next day.
