- Total information
- SWIFT system is not only money transfers
- Advantages of using SWIFT translation
- What are the disadvantages of a SWIFT system?
- What is necessary to translate the system SWIFT?
- Who can use the SWIFT transfer system?
- Who pays for the transfer?
- Cost of transfers in the SWIFT system
A lot of people in our time like to go abroad to earn money. Such a concept as a remittance, for a long time and seriously entered into the everyday life of citizens of different countries. In most cases, the question of money transfer becomes acute. The choice of the transfer method, the payment of commissions - all this falls on the shoulders of working abroad. That is why the average person has a lot of questions. One of the most popular networks for transferring money today is the SWIFT transfer system. But what is it and how to use it? SWIFT - what is it?
SWIFT Translation System - what is it? What is the history of this network? The word SWIFT is an abbreviation, which must be understood as the Community of financial interbank world telecommunications. The system of transfers SWIFT is an international system for transferring information and making payments. It was founded in the early seventies of the twentieth century in Belgium. The headquarters is located in the city of Brussels. According to official data, this network includes two hundred and twelve countries and more than ten thousand institutions. More than twenty million different transactions go through this system in one day. Among them are interbank payments, financial messages, money transfers and others.
SWIFT system is not only money transfers
Sending transfers and transferring any data has become much faster thanks to a system such as SWIFT. Accordingly, the transaction cost has decreased. It takes only twenty minutes to deliver a message, and for an additional fee you can do it in five minutes. For comparison: the transfer of information through the telegraph takes more than two hours.
SWIFT - what is it? This is the largest network of international transmission of information. This is an absolutely reliable, efficient, secure and perfect transfer of messages, money transfers through the system. The participants of this network include brokerage firms, banks, stock exchanges, central depositories, dealing centers, securities companies, and investment mutual funds. On the territory of the Russian Federation there is an association "RossSvift", which includes almost six hundred users. Large credit organizations make up thirty percent of this amount, and they carry out almost eighty percent of all their settlements using this system.
Advantages of using SWIFT translation
Transactions using the system described above are beneficial if the amount is more than one hundred United States dollars, since the fixed commission already begins above. If the transfer is planned for less than one hundred dollars, then it is recommended to use other variants of instant transfers: MoneyGram or Western Union, for example. SWIFT system - what is it? What are the benefits? The main striking difference between this network and other alternatives is the choice of the widest range of currencies, the targeted translation. All this together makes working with finances much safer.
What are the disadvantages of a SWIFT system?
Naturally, any, even the best, system will have its negative sides. But if we talk about SWIFT, what are these disadvantages?
First, it is necessary to say about the increased commissions in individual banks and countries. For the transfer of funds in certain countries, some banks set an additional commission. The chain of intermediary banks can even increase the cost of the transfer if the currency of the procedure differs from the national currency into which the transaction enters. Secondly, there are commissions that are charged to the recipients. Since the funds are credited to the beneficiary’s account at his bank, there is a certain payment for the cash withdrawal procedure. I would also like to add that SWIFT (translation) takes much more time (up to several days) than many other types of payments (which take an average of half an hour to a day).
What is necessary to translate the system SWIFT?
To transfer money using this network abroad, it is necessary to have with you an identification code, a passport and the following documents:
- Code - SWIFT Bank, in which the transfer will be made.
- The code of the international bank account format (IBAN), or the number of the account in whose favor the transaction takes place.
- The name of the company, company or name of the recipient, in whose favor the transfer of funds will be made.
- The name of the banking institution to which the money will go.
- The SWIFT code and the name of the correspondent bank, in case the currency in which the transfer is made differs from that which is considered to be national in the recipient country.
This type of transfer today offers all more or less large banks.
Who can use the SWIFT transfer system?
Despite the popularity of international money transfer systems such as Unistream, MoneyGram, Western Union, in some cases it is much more convenient to use SWIFT as an exchange network. All money transfers using this system are much cheaper and more convenient to pay for a whole range of services, be it medical care, study, booking rooms or orders, payment for purchases. SWIFT transfer is actively used to transfer money to relatives, pay for various events (participation in conferences, tours).
Who pays for the transfer?
The peculiarity of the phenomenon of the SWIFT transfer system is that the transfer is made at the expense of the recipients. The main consumers of such transactions are regular customers who make regular transfers. That is why a number of advantages have been developed in the form of a choice of currency of transfer, the absence of any limits on the amount (if this does not violate the laws of the country from which the transfer is received, and the one where the funds go). As mentioned above, the main positive aspects are based on the fact that the SWIFT system is designed to carry out transactions with large amounts. Hence, low tariffs, and payment at the expense of the recipient, which significantly distinguishes this network from competitors and even more so from fast transfer systems that are oriented to work with small amounts.
Cost of transfers in the SWIFT system
Compared with competitive international money transfer networks, SWIFT offers much cheaper transactions. However, this is really well seen only when sending large sums, as the progressive scale of commission charges is in effect. For example, sending one hundred dollars to the United States of America through any other system of international transfers will cost from ten to twenty dollars. And transfer of the same amount through the SWIFT network will cost several times more expensive - up to fifty conventional units. By the way, a lot depends on the bank that performs the transaction.
But when transferring thousands of US dollars through major MSDPs, the commission will be up to fifty dollars. Here the SWIFT money transfer system looks advantageous, which charges a commission of only ten to fifteen conventional units for a similar amount of money. The most noticeable is the difference when the sums pass for ten thousand. Here, the commission in major MSDPs will already be in the range of one hundred to three hundred and fifty dollars of the United States of America. But if a client would like to transfer money to a relative abroad, pay for a purchase or study, pay for a guided tour using a network such as the international transfer system SWIFT, he will have to pay a hundred dollars for a transaction of ten thousand.