A SWIFT payment is the common name for an international bank transfer instructed using standardized financial messages sent over the Swift network. Swift transmits payment information. The actual funds may move through correspondent accounts and several financial institutions before reaching the Recipient.
What Swift does
Swift provides secure financial messaging and standards used by banks and other institutions. It does not hold every payer’s money or operate as the bank account receiving every transfer.
A typical payment chain
- The sending bank validates the instruction.
- A Swift message identifies parties, amount, currency and routing information.
- Correspondent or intermediary institutions adjust accounts where needed.
- The beneficiary bank receives the instruction and credits the eligible Recipient account.
| Item | Purpose |
|---|---|
| Recipient name | Identifies the beneficiary |
| Account number or IBAN | Identifies the receiving account |
| BIC | Identifies a business party or institution |
| Currency and amount | Defines the instructed transfer |
| Fee instruction | Allocates certain transfer charges |
| Payment reference | Supports identification and reconciliation |
Timing and cost
Timing depends on the banks, currencies, cut-offs, screening and account relationships involved. Fees may be charged by the sending, intermediary or receiving institutions. The instructed amount can differ from the final credit under some fee arrangements.
Source: Swift correspondent banking overview
Compare a bank wire with an eligible Quotable Payments route using total debit, rate, disclosed charges, Recipient amount and tracking evidence.
