SWIFT Transfers Explained: Fees, Delays and Alternatives

SWIFT Transfers Explained: Fees, Delays and Alternatives

If you have ever sent money abroad through your bank, you have probably used SWIFT without knowing it. You typed in a strange eight- or eleven-character code, paid a fee that seemed to change every time, and then waited a few days wondering where your money was. When it arrived, it was often less than you expected.

SWIFT is one of the most important and least understood parts of international banking. This guide explains what it is (and what it is not), how a SWIFT transfer works step by step, why it costs what it costs, why it can be slow, how to track a payment and what you can use instead. If you want to compare every option for moving money, see our guide to the cheapest ways to send money abroad.

The short answer

SWIFT is a messaging network that banks use to send each other payment instructions. It does not move money itself. The money travels through correspondent banks, which is why international wires can pass through several banks, collect fees at each step and take days. SWIFT works almost everywhere, which is its strength, but for many everyday payments there are cheaper and faster alternatives.

What is SWIFT?

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It is a secure communication network that connects financial institutions around the world. Two points matter most:

• SWIFT is not a bank and does not hold your money. It transmits the instructions that cause funds to move between banks, and the actual movement happens by debiting and crediting accounts that banks hold with each other.
• Without SWIFT connectivity, a bank cannot easily send or receive international wires, which is why it remains the default for cross-border bank transfers.

You will also see the term “SWIFT code” or “BIC”. It is the code that identifies a specific bank so that the message reaches the right institution.

How a SWIFT transfer works, step by step

1. You instruct your bank to send money, giving the recipient’s name, account number or IBAN and the recipient bank’s SWIFT/BIC code.
2. Your bank sends a payment message over the SWIFT network to the next bank in the chain.
3. If your bank does not have a direct relationship with the recipient’s bank, the instruction passes through one or more correspondent (intermediary) banks, which hold accounts for each other.
4. Money moves by accounting entries. Banks keep accounts with each other, called nostro and vostro accounts (one account seen from each side), and they debit and credit them as the payment travels.
5. The recipient’s bank credits the account. It may deduct its own fee.
6. Your recipient sees the money, in the currency and amount after all fees and any conversion.

The number of steps depends on the route. A provider can only send in a currency where it, or a bank it works with, holds an account, so a provider that advertises dozens of currencies is really telling you about the reach of its correspondent network.

What you need to send or receive a SWIFT transfer

• Recipient’s full name, exactly as on the account, and address.
• Account number or IBAN.
• SWIFT/BIC code of the recipient’s bank.
• Bank name and address.
• Currency and amount.
• A reference, such as an invoice number.
• Correspondent or routing details, if the bank requests them for certain currencies.

When you are asking a client to pay you, put these details on your invoice clearly. See how to invoice an international client for a structure that avoids errors.

A note on the data standard

SWIFT has completed a big technical change. After a coexistence period that began in March 2023, the old message format and the new ISO 20022 format could no longer run side by side from 22 November 2025, making ISO 20022 the standard for cross-border payment instructions. The new messages carry richer, more structured data, which helps automated processing and compliance screening. For you, the practical lesson is simple: complete, accurate names, addresses and references matter more than ever, since incomplete or inconsistent data is more likely to be queried or delayed.

What it costs

A SWIFT transfer can involve several layers of cost:

Layer	What it is	Who charges it
Sending bank fee	A flat or percentage fee for the outgoing transfer	The sender’s bank
Intermediary (correspondent) fees	A fee taken by each intermediary bank on the route	Intermediary banks
Receiving bank fee	A fee for crediting the incoming payment	The recipient’s bank
Exchange rate margin	A markup on the rate if the money is converted	The bank doing the conversion

The correspondent model is the reason that fees for small transfers can be proportionally high. Reported figures from payments providers put sending fees and each intermediary fee at roughly 10 to 50 USD, though real amounts vary widely by bank and route, so check your bank’s published tariff and ask for an estimate.

The exchange rate is often the biggest cost

If the transfer involves a currency conversion, the exchange rate margin can cost more than all the visible fees together. Banks usually convert at their own retail rate. To see how it works and how to calculate it, read about exchange rate margins.

Who pays the fees: OUR, SHA and BEN

When you send a SWIFT payment you can usually choose how the charges are split:

• OUR: the sender pays all charges, so the recipient should receive the full amount. It costs the sender more up front, and intermediary fees may be collected from the sender separately.
• SHA (shared): the sender pays the sending bank, and the recipient bears the rest, including intermediary fees. It is the most common default, and the reason the amount received is often lower than the amount sent.
• BEN: the recipient pays all charges.

If you are a freelancer asking a client to pay you, ask for OUR, or add a small buffer to your price.

Why SWIFT can be slow

SWIFT messages are sent in seconds, but the money has to move through banks, and that is what takes time. Typical reasons for delay:

• Several intermediary banks, each with its own processing.
• Bank cut-off times, which differ by bank and currency.
• Weekends and holidays in any country along the route.
• Time zones, since a payment started late in one place may wait for the next business day in another.
• Compliance and sanctions checks, especially for large amounts, first-time payees or unusual routes.
• Incorrect or incomplete details, which lead to queries or returns.
• Currency conversion and rare currencies.

Even with improvements such as SWIFT gpi, fees still vary and settlement can be delayed outside banking hours, because gpi runs on top of the same correspondent banking network. For typical timelines, see how long international payments take, and if a payment is stuck, read what to do when your transfer is delayed or blocked.

How to track a SWIFT payment

SWIFT gpi was launched in 2017 to add end-to-end tracking, same-day settlement commitments and fee transparency across the correspondent chain, without replacing the underlying network. It works by attaching a unique 36-character reference, the UETR, to each payment. Participating banks use it to report the status of the payment to a central tracker as it moves. A 2026 guide says a UETR is now required for all SWIFT payments, not only those sent under gpi.

What this means in practice:

• Ask your bank for the transfer’s tracking reference (the UETR) and the confirmation of the payment.
• Use it to ask your bank, and the recipient’s bank, where the payment is, since cancellations, status reports, returns and investigations all quote the same reference.
• Tracking does not make the payment faster, but it shows where it is and where fees were deducted, so you can solve problems sooner.

Alternatives to SWIFT

SWIFT is not always the best way to send money. Alternatives include:

Alternative	How it works	Typical advantage	Typical limit
Local payment rails (SEPA, ACH, Faster Payments)	A domestic or regional transfer within the same payment zone	Fast and cheap or free	Only works inside the zone
Local account details in the payer’s currency	The payer sends a domestic transfer to your account details in their currency	No SWIFT fees for the payer; often cheaper for you	Availability by country and provider
Money transfer providers and apps	A specialist service that moves money using local accounts at each end	Transparent pricing, often cheaper	Limits, verification, route coverage
Payment platforms and wallets	Balances and payments between platform users	Convenience	Conversion and withdrawal fees
Card payment links	The payer pays by card	Convenient	Higher percentage fees

For a head-to-head comparison of banks and apps, see bank transfer vs money transfer app. If you receive money regularly, multi-currency accounts can give you local details so your clients avoid SWIFT altogether, and for US dollars see how to receive US dollar payments without a US bank account.

When SWIFT still makes sense

• Large payments where an alternative has limits.
• Countries or currencies where other options are not available.
• When a counterparty requires a bank-to-bank wire, for example for a property or a legal payment.
• When you need a bank to bank record for compliance.

Even then, compare quotes and ask about fees and exchange rates first.

If you are receiving

If a client is paying you by SWIFT:

• Give complete, correct details, including the account holder’s name exactly as on the account.
• Ask the sender to choose OUR so that you receive the full amount, or add a buffer to your price.
• Expect that your own bank may charge a fee for incoming wires.
• Ask whether you can give the client local account details in their currency instead. See the ways to receive payments from abroad for the options.

How to reduce the cost of a SWIFT transfer

1. Check for a cheaper route first: local rails, local account details or a transfer provider.
2. Choose OUR if the recipient needs the full amount, and compare the cost.
3. Compare the exchange rate with the mid-market rate, and avoid your bank’s automatic conversion if the rate is poor.
4. Send fewer, larger payments if fees are mostly fixed.
5. Give accurate details to avoid returns and repair fees.
6. Ask your bank for a quote of all fees and the expected arrival date before you confirm.
7. Calculate the total cost with our transfer fee calculator.

A step-by-step checklist

1. Confirm the currency and the recipient’s bank details.
2. Check whether a local alternative exists.
3. Compare quotes, including the exchange rate.
4. Choose who pays the fees (OUR, SHA or BEN).
5. Double-check the name, account number or IBAN and SWIFT/BIC.
6. Send the payment before your bank’s cut-off, on a weekday.
7. Save the confirmation and the tracking reference.
8. Share the reference with the recipient.
9. If it does not arrive in the expected time, ask both banks to trace it.

Common mistakes to avoid

• Sending SWIFT when a cheaper alternative exists.
• Assuming “no fee” means no cost. The exchange rate can hide the cost.
• Not choosing who pays the fees, and leaving the default.
• Giving incomplete or mismatched details.
• Sending late on a Friday or before a holiday.
• Not saving the tracking reference.
• Converting at your bank without comparing rates.
• Chasing too early, before the typical time has passed.
• Sending many small payments with fixed fees.

Frequently asked questions

What is a SWIFT transfer?

An international bank transfer in which banks use the SWIFT network to send payment instructions, while the money moves through correspondent bank accounts.

Is SWIFT a bank?

No. It is a messaging network, and it does not hold or move money itself.

Why do SWIFT transfers have so many fees?

Because the payment may pass through several banks, each of which can charge a fee, and the exchange rate often includes a margin.

What does OUR, SHA or BEN mean?

They are instructions for who pays the charges. OUR means the sender pays, SHA means they are shared and BEN means the recipient pays.

How long does a SWIFT transfer take?

Typically one to five business days, though it can be faster or slower depending on the route, banks and checks. See our timelines guide.

How can I track a SWIFT payment?

Ask your bank for the tracking reference (the UETR) and use it to ask both banks where the payment is.

What is a cheaper alternative to SWIFT?

Local payment rails, local account details in the sender’s currency or a specialist transfer provider, depending on the route.

Final thoughts

SWIFT is reliable, universal and often expensive. Understanding that it is only a messaging network, and that real costs come from correspondent banks and exchange rate margins, makes it easier to decide when to use it and when to avoid it. Compare alternatives, choose who pays the fees, give accurate details and keep the tracking reference. For regular international payments, local account details or a specialist provider will usually cost less.

This article is general information, not financial advice. Fees, timelines and rules change and vary by bank, country and route. Information reviewed October 10, 2026.