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Currently, the most common systems in the world when it comes to international payments are SEPA and SWIFT.
The main difference between them is as follows: SEPA (or Single Euro Payment Area) – payment in European currency without any amount limit and within the Euro area, where the recipient's account number is required in IBAN format. SEPA payments are made between 28 EU countries, plus Norway, Iceland, Switzerland and Liechtenstein, which are members of the Schengen area. In turn, SWIFT (Society for Worldwide Interbank Financial Telecommunications or Society of worldwide interbank financial communication channels), in fact, is a global system, which currently has more than 210 countries and about 11,000 banks.
United Europe – unified financial transactions
In truth, for ordinary users, for example, entrepreneurs, inside Europe, if they make payments in euros, there is not much difference to work in the SEPA or SWIFT system. However, there are nuances. For example, the SWIFT system, although created under Belgian law, but since 2011 it is controlled by the US State Department, which monitors all payments. But the SEPA system is strictly intra-European, and monitoring of payments in it is carried out by European structures, for example, tax authorities.
Let's tell you in more detail. The SEPA system started working in 2008 and for a couple of years virtually all banks in the EU and the Schengen area actively used it. The European payments Council coordinated the implementation of SEPA. We created SEPA, by and large, only for one person. At that time, the Eurozone countries had different payment systems with their own standards and instruments, which often complicated the process of settlements in euros. When SEPA was introduced, the differences between payments in euros – both domestic and international-were completely eliminated within the single system.
In the process of making payments to SEPA, as a rule, large organizations use a single set of financial instruments, standards and procedures. A huge plus of SEPA: when a payment is made between organizations of European countries in this single system, banks are required to transfer the full amount to the recipient's account without additional fees. In addition, payments are made quickly: no later than one business day after the document is issued. Banks operating in the SEPA system make international payments across Europe between individuals and businesses in the same way as domestic payments.
Innovative project for the protection of "consumer rights"
Initially, the European payments Council noted that SEPA is an innovative project that includes various regulatory structures, payment service providers, banks, and, of course, consumers. From a legal point of view, SEPA is a set of common rules and standards adopted by the aforementioned European payments Council. The draft initially specified three main points: SEPA credit transfer, SEPA direct debit, and finally SEPA's own payment cards.
The world also knows other domestic payment systems, for example, in China. So, China UnionPay represents the largest payment systems in China on the world market. But most importantly, the Central Bank of China has launched an analog of SWIFT-the CIPS (Chinese International Payment System) international payment system, which helps to reduce the cost of transactions in yuan, as well as reduce the processing time of payments.
However, let's go back to SEPA and SWIFT. If we are talking about international financial transactions, it is important to understand that the SEPA system, created on the initiative of EU legislators, exists only within Europe, and not globally. But the SWIFT system works all over the world.
SWIFT: security and speed
Yes, now in the online community you can often read about the method of transferring money from one Bank account to another-Wire transfer. Literally "wire transfer" – "wire transfer". This refers to the transatlantic "banking cable", which is owned by SWIFT. It so happens that "wire transfer" is often referred to as a SWIFT transfer: the same thing. SWIFT is considered to be a secure messaging system between banks. When performing Wire transfer, the Bank transmits information about the transfer via the SWIFT system, which indicates the amount, IBAN, Bank code, and so on.
The SWIFT system provides fast and accurate transfer delivery from one Bank account to another due to the impressive number of participants. Currently, the system has over 11,000 financial corporations (usually banks) from 210 countries.
What you need to know about SEPA transfers
Holders of Bank accounts in EU countries can take advantage of the benefits provided by the Single European payment area. Within the EU area, Bank payments are fast, do not require special documents, and are subject to a fixed fee.
What is SEPA?
The abbreviation SEPA from English stands for "single payment area in Euro currency". The financial initiative was created as a result of joint efforts of the banking sector to optimize transfers between EU member States.
The idea was supported almost unanimously: both the European Commission and the local Central Bank voted in favor. The final decisions and rules for the operation of the system were fixed in a special Directive number 2007/64 / EC dated 13.11.2017.
For the first time, Europeans managed to test the possibilities of SEPA transfers in early 2008. Since then, quick and easy transfers are available in more than 30 countries of the European economic area.
The following types of financial transactions can be performed under SEPA:
Key benefits of SEPA
The main difference between this money transfer system is a fixed rate, which does not depend on the amount, destination or any other factors. The recipient's account is guaranteed to be credited with the amount that was declared when sending it.
Another advantage is standardization. To send money, you just need to know the bank account number in the IBAN (International Bank Account Number) standard and the BIC identifier of the financial institution. As a result, financial transactions are processed quickly, and transaction compatibility is ensured regardless of where the money is sent from or to.
As a result, SEPA compares favorably:
SEPA member countries. Can I use SEPA in Russia?
Using the SEPA system, it is impossible to transfer money from the accounts of domestic banks, and it is also impossible to get it in the branches of Russian banking institutions. To take advantage of this type of transfer, you must have an account with any financial institution in the following countries:
Algorithm and completion dates
There are many convenient tools for creating Bank orders for withdrawing or transferring money (cash or electronic). European banks offer to use Internet options, a mobile application, Fax or personally visit the nearest branch.
To take advantage of all the SEPA features, you must meet a number of requirements that will allow the payment to be counted as "regulated" and processed as quickly as possible. The list of requirements includes:
The term of execution of a Bank order is 1-3 days, but most often banks, trying to offer the most optimal terms of cooperation for customers, additionally speed up all procedures (up to 15-30 minutes, depending on the time of sending).
What is an IBAN and what is its role in SEPA
The abbreviation IBAN is translated into Russian as "international bank account number". In Russia, it is not used, but for" addressable " shipments using the SEPA system, it is simply necessary. Knowing the desired combination, you can send money to any account in the EU or EEA, regardless of which Bank the sender has and which one the recipient has.
The number of characters varies depending on the country, but the total number does not exceed 34 letters and numbers. The first two characters indicate the country in which the Bank is registered.
It is important to remember that in a classic transfer, the recipient's IBAN and BIC are indicated (BIC-code for identifying the financial institution to which the money is sent; from 8 to 11 numeric and alphabetic characters).
For direct debits (for example, automatic payments for consumed utilities), these details should be reported to the billing operator.
An error in the banking details caused by the client entails an additional commission (for correcting the inaccuracy). In addition, the Bank will also credit a reward to itself if the client's account does not have enough money to make the transfer (and the request for it has already been issued).
Thus, the presence of an IBAN account allows you to make Bank transfers and payments in a simplified manner, with preferential tariff rates and guaranteed security of funds.
Difference between SWIFT and SEPA transfers
Until recently, the SWIFT system was popular all over the world. Today, it has been replaced by SEPA transfers, but only in the territory of the UES. In other countries, SWIFT is still the most convenient and popular option.
What is the difference between these tools?
Payment systems and SEPA
Many services offer assistance with crediting funds both to their own accounts in European banks, as well as to the accounts of EU citizens and local companies. Moreover, you can arrange everything both in the office and using the functions of online banking.
The following documents are required for registration:
Receiving payments from abroad is complicated by the fact that Russia does not work with IBAN, which means that citizens of our country cannot get it. However, there are services that provide a virtual IBAN code.
In conclusion, it should be noted that sending and receiving SEPA in Russia entails additional costs, since the Commission for services is charged by intermediaries payment systems and services that provide virtual IBAN.
How do SWIFT transfers work?
Money transfers to different parts of the world are already firmly established in the life of a modern person. New technologies allow you to make shipments even from your home – using online banking services and applications. The SWIFT system allows you to transfer money to the accounts of foreign recipients in foreign banks – in this case, instant transfers like Western Union do not work.
With the help of SWIFT transfer, you can profitably send money anywhere in the world, pay for training in foreign countries and hotel accommodation. It is only important to correctly specify the banking details so that the money does not" hang " on the accounts of intermediary banks involved in the transaction.
What is a SWIFT money transfer?
The abbreviation SWIFT was formed from the name "community of global interbank communications". Even in the logo, which is made in the form of a globe surrounded by meridians, there is a reference to the financial channels that permeate the modern world.
The SWIFT system was formed in 1973, bringing together over 200 banks from Europe and the United States in one community. The goal of the cooperation was to speed up transactions and ensure high accuracy and reliability of banking operations.
Today, the community's head office is located in Belgium, and more than 10 thousand banks from 220 countries take part in the cooperation. They conduct more than a million transactions per day. In addition to banking institutions, the services of SWIFT transfers are actively used by securities exchanges, brokers and other financial market participants.
Each Bank in the SWIFT system is assigned a unique code (similar to the BIC in our country), formed according to ISO9362. This ensures the protection of funds and ensures the accuracy of transfers.
Advantages of SWIFT:
The disadvantages of the operator include:
Commission and rates
Compared to other operators that also provide financial services, the SWIFT system offers the most favorable rates. There are no fixed prices here – the total amount consists of Commission fees that are set by the participating banks themselves. Often, the cost of a transfer is cheaper than that of instant money transfer systems.
Depending on the bank, commissions can reach up to:
For example, Sberbank sets a rate of 2% for dollar transfers, but not less than $15. That is, it is profitable to send amounts over $75 through this Bank. Binbank will take 1.3%, but not less than $30. In MDM, the figures are $ 1% and $25, respectively.
The final cost of the transaction is calculated by the operator at the time of making the transfer. It is important to remember that the Commission fee is paid by the payee. If you need to transfer the exact amount (for example, as a payment for services), the amount of money sent is increased by the Commission amount.
SWIFT transfers from Russia
The system's rules do not set minimum and maximum limits for both the amount of transfers and their number. However, the local legislation of the participating countries comes into play, which determines how many transactions in one day and within what limits can be carried out on behalf of a single sender.
In Russia, this framework is stipulated in Federal law No. 173 "on currency regulation" if a transfer is sent to an individual to a foreign account, then no more than $5,000 is allowed to be transferred per day (the equivalent in another currency is calculated from the Central Bank's exchange rate on the day of the transaction). In case of frequent transfers, according to Federal law No. 115, the Bank's financial control service may request documents confirming the legality of the source of income.
To transfer a large amount, you must provide proof of its intended purpose – for example, an invoice for payment for educational services at a foreign University.
Let's look at the mechanism of making a transfer from Russia using the SWIFT system on the example of Sberbank – it has the most extensive network of branches among domestic banks. The Bank code looks like this: SABR RU MM XXX – the last digits identify specific branches. You can find out the exact banking details in the Bank itself or on the official website. Sberbank supports transfers in euros, dollars, rubles, Swiss francs, and British pounds.
When using foreign currency, the Commission fee is about 1% (minimum 50 monetary units and maximum 200), and for ruble transactions-2% and from 50 to 1500 rubles, respectively.
SWIFT transfer to Ukraine
To send money to Ukraine, you must:
How SWIFT transfers are made: how the system works
Features of the system allow you to transfer funds from an existing Bank account, without it, and receive, respectively, in cash or credited to the account. To perform these actions, you must have the following information:
From Russia, SWIFT transfers are most often sent from foreign currency Bank accounts.
How much does a SWIFT transfer cost?
SWIFT transfers lose out in terms of speed to instant money transfer operators (Contact, Western Union, etc.), but they win out in terms of the cost of shipments. The average time for passing money is from 1 to 3 days. In some cases, the procedure takes up to 7 days (if the chain of intermediary banks is large). However, money can reach popular destinations (large banks) in a matter of hours.
SWIFT in a currency transfer
The system works with all world currencies, but local transfer options depend on the specifics of the sender's and recipient's banks. In other words, when sending money via Sberbank, you can choose between euro, dollar, Swiss franc, and British pound sterling the bank does not have a license to work with other currencies.
It is worth remembering that all currency shipments are monitored by the relevant services for compliance with the requirements set out in the law "on currency regulation". In particular, the bank is required to report to Rosmonitoring information about all transfers exceeding the $5,000 limit. In addition, amounts above this figure must be confirmed – provide documents on the intended purpose, the legality of the source of income. Otherwise, the Bank has the right to block the account or freeze the money until the circumstances are clarified.
Urgent SWIFT transfer
On average, money transfers via the SWIFT system are carried out within 1 to 3 days. Unfortunately, there are no special options to speed up this process.
Experts advise choosing large financial institutions as the sending Bank and the receiving bank – in this case, the transaction time may be only a few hours due to the lack of unnecessary links in the chain of correspondents.
The more remote and smaller the bank branch, and the less developed the banking industry in the destination country, the more time it will take to complete the operation. Transfers to leading banks in Europe, the United States, Singapore or Hong Kong will take place within a day, but delivery to Ukraine, Eastern Europe, Latin America will take 3-5 days, and to Africa-up to a week.
Transfers within Russia are always received during the business day.
The main difference between them is as follows: SEPA (or Single Euro Payment Area) – payment in European currency without any amount limit and within the Euro area, where the recipient's account number is required in IBAN format. SEPA payments are made between 28 EU countries, plus Norway, Iceland, Switzerland and Liechtenstein, which are members of the Schengen area. In turn, SWIFT (Society for Worldwide Interbank Financial Telecommunications or Society of worldwide interbank financial communication channels), in fact, is a global system, which currently has more than 210 countries and about 11,000 banks.
United Europe – unified financial transactions
In truth, for ordinary users, for example, entrepreneurs, inside Europe, if they make payments in euros, there is not much difference to work in the SEPA or SWIFT system. However, there are nuances. For example, the SWIFT system, although created under Belgian law, but since 2011 it is controlled by the US State Department, which monitors all payments. But the SEPA system is strictly intra-European, and monitoring of payments in it is carried out by European structures, for example, tax authorities.
Let's tell you in more detail. The SEPA system started working in 2008 and for a couple of years virtually all banks in the EU and the Schengen area actively used it. The European payments Council coordinated the implementation of SEPA. We created SEPA, by and large, only for one person. At that time, the Eurozone countries had different payment systems with their own standards and instruments, which often complicated the process of settlements in euros. When SEPA was introduced, the differences between payments in euros – both domestic and international-were completely eliminated within the single system.
In the process of making payments to SEPA, as a rule, large organizations use a single set of financial instruments, standards and procedures. A huge plus of SEPA: when a payment is made between organizations of European countries in this single system, banks are required to transfer the full amount to the recipient's account without additional fees. In addition, payments are made quickly: no later than one business day after the document is issued. Banks operating in the SEPA system make international payments across Europe between individuals and businesses in the same way as domestic payments.
Innovative project for the protection of "consumer rights"
Initially, the European payments Council noted that SEPA is an innovative project that includes various regulatory structures, payment service providers, banks, and, of course, consumers. From a legal point of view, SEPA is a set of common rules and standards adopted by the aforementioned European payments Council. The draft initially specified three main points: SEPA credit transfer, SEPA direct debit, and finally SEPA's own payment cards.
It is also worth mentioning some local analogues of SEPA for local currencies. For example, in England, even before all the talk about leaving the EU, there was its own system focused on British pounds – Faster Payments Service (FPS). The creation of this system was initiated by the Merger of British banks. It is purely internal for customers of the network of British banks, in order to reduce the time of payments between customer accounts. For example, payments of up to 250,000 pounds are usually made in one day, up to a maximum of three. Banks do not charge any fee from their clients for transferring money inside the FPS system, if operations are conducted in pounds.
The world also knows other domestic payment systems, for example, in China. So, China UnionPay represents the largest payment systems in China on the world market. But most importantly, the Central Bank of China has launched an analog of SWIFT-the CIPS (Chinese International Payment System) international payment system, which helps to reduce the cost of transactions in yuan, as well as reduce the processing time of payments.
However, let's go back to SEPA and SWIFT. If we are talking about international financial transactions, it is important to understand that the SEPA system, created on the initiative of EU legislators, exists only within Europe, and not globally. But the SWIFT system works all over the world.
SWIFT: security and speed
Yes, now in the online community you can often read about the method of transferring money from one Bank account to another-Wire transfer. Literally "wire transfer" – "wire transfer". This refers to the transatlantic "banking cable", which is owned by SWIFT. It so happens that "wire transfer" is often referred to as a SWIFT transfer: the same thing. SWIFT is considered to be a secure messaging system between banks. When performing Wire transfer, the Bank transmits information about the transfer via the SWIFT system, which indicates the amount, IBAN, Bank code, and so on.
Each Bank in the SWIFT system has its own unique code. When sending a payment, funds are credited directly to the account of an individual or legal entity. The sender can choose the currency for the transfer, and regardless of which account it is made from in what currency it is.
The SWIFT system provides fast and accurate transfer delivery from one Bank account to another due to the impressive number of participants. Currently, the system has over 11,000 financial corporations (usually banks) from 210 countries.
What you need to know about SEPA transfers
Holders of Bank accounts in EU countries can take advantage of the benefits provided by the Single European payment area. Within the EU area, Bank payments are fast, do not require special documents, and are subject to a fixed fee.
What is SEPA?
The abbreviation SEPA from English stands for "single payment area in Euro currency". The financial initiative was created as a result of joint efforts of the banking sector to optimize transfers between EU member States.
The idea was supported almost unanimously: both the European Commission and the local Central Bank voted in favor. The final decisions and rules for the operation of the system were fixed in a special Directive number 2007/64 / EC dated 13.11.2017.
For the first time, Europeans managed to test the possibilities of SEPA transfers in early 2008. Since then, quick and easy transfers are available in more than 30 countries of the European economic area.
The following types of financial transactions can be performed under SEPA:
- classic transfers from one owner's Bank account to another's Bank account;
- payment of services and invoices (including automatic payment);
- Bank card payments.
Key benefits of SEPA
The main difference between this money transfer system is a fixed rate, which does not depend on the amount, destination or any other factors. The recipient's account is guaranteed to be credited with the amount that was declared when sending it.
Another advantage is standardization. To send money, you just need to know the bank account number in the IBAN (International Bank Account Number) standard and the BIC identifier of the financial institution. As a result, financial transactions are processed quickly, and transaction compatibility is ensured regardless of where the money is sent from or to.
As a result, SEPA compares favorably:
- the speed of making transfers is less than 24 hours, as penalties are charged for each day of delay (in favor of the sender);
- low fees costs are reduced by optimizing national payment systems;
- you don't need to open additional accounts with different banks all operations are performed using the ID of the financial institution itself;
- the requirements and tools are the same for all zone participants;
- extensive integration of mobile devices almost all actions can be controlled from a smartphone;
- well-developed Internet banking.
SEPA member countries. Can I use SEPA in Russia?
Using the SEPA system, it is impossible to transfer money from the accounts of domestic banks, and it is also impossible to get it in the branches of Russian banking institutions. To take advantage of this type of transfer, you must have an account with any financial institution in the following countries:
- EMU countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain;
- EU members that retained their national currencies: Bulgaria, Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania, Sweden, United Kingdom;
- the other European countries are Iceland, Liechtenstein, Monaco, Norway and Switzerland.
Algorithm and completion dates
There are many convenient tools for creating Bank orders for withdrawing or transferring money (cash or electronic). European banks offer to use Internet options, a mobile application, Fax or personally visit the nearest branch.
To take advantage of all the SEPA features, you must meet a number of requirements that will allow the payment to be counted as "regulated" and processed as quickly as possible. The list of requirements includes:
- both banks (sender and receiver) must operate in countries included in the SEPA list;
- departure currency-euro;
- the order contains the p/s number in IBAN format and the SWIFT code (BIC);
- the Commission is paid separately using the SHA system (costs are distributed equally between the sender and recipient).
The term of execution of a Bank order is 1-3 days, but most often banks, trying to offer the most optimal terms of cooperation for customers, additionally speed up all procedures (up to 15-30 minutes, depending on the time of sending).
What is an IBAN and what is its role in SEPA
The abbreviation IBAN is translated into Russian as "international bank account number". In Russia, it is not used, but for" addressable " shipments using the SEPA system, it is simply necessary. Knowing the desired combination, you can send money to any account in the EU or EEA, regardless of which Bank the sender has and which one the recipient has.
The number of characters varies depending on the country, but the total number does not exceed 34 letters and numbers. The first two characters indicate the country in which the Bank is registered.
It is important to remember that in a classic transfer, the recipient's IBAN and BIC are indicated (BIC-code for identifying the financial institution to which the money is sent; from 8 to 11 numeric and alphabetic characters).
For direct debits (for example, automatic payments for consumed utilities), these details should be reported to the billing operator.
An error in the banking details caused by the client entails an additional commission (for correcting the inaccuracy). In addition, the Bank will also credit a reward to itself if the client's account does not have enough money to make the transfer (and the request for it has already been issued).
Thus, the presence of an IBAN account allows you to make Bank transfers and payments in a simplified manner, with preferential tariff rates and guaranteed security of funds.
Difference between SWIFT and SEPA transfers
Until recently, the SWIFT system was popular all over the world. Today, it has been replaced by SEPA transfers, but only in the territory of the UES. In other countries, SWIFT is still the most convenient and popular option.
What is the difference between these tools?
- SWIFT allows you to make financial transactions all over the world, SEPA-only in 36 European countries;
- payments can be made in any currency via SWIFT, while SEPA provides for the use of only euros.;
- the terms of transactions also differ SWIFT can spend money for up to 5-7 days, while SEPA can spend money from 1 second to 1 day.
Payment systems and SEPA
Many services offer assistance with crediting funds both to their own accounts in European banks, as well as to the accounts of EU citizens and local companies. Moreover, you can arrange everything both in the office and using the functions of online banking.
The following documents are required for registration:
- passport;
- identity card, proof of registration on the territory for foreigners;
- recipient's banking details for individuals - full name, for legal entities-full name of the company (in Latin), as well as IBAN and BIC.
Receiving payments from abroad is complicated by the fact that Russia does not work with IBAN, which means that citizens of our country cannot get it. However, there are services that provide a virtual IBAN code.
In conclusion, it should be noted that sending and receiving SEPA in Russia entails additional costs, since the Commission for services is charged by intermediaries payment systems and services that provide virtual IBAN.
How do SWIFT transfers work?
Money transfers to different parts of the world are already firmly established in the life of a modern person. New technologies allow you to make shipments even from your home – using online banking services and applications. The SWIFT system allows you to transfer money to the accounts of foreign recipients in foreign banks – in this case, instant transfers like Western Union do not work.
With the help of SWIFT transfer, you can profitably send money anywhere in the world, pay for training in foreign countries and hotel accommodation. It is only important to correctly specify the banking details so that the money does not" hang " on the accounts of intermediary banks involved in the transaction.
What is a SWIFT money transfer?
The abbreviation SWIFT was formed from the name "community of global interbank communications". Even in the logo, which is made in the form of a globe surrounded by meridians, there is a reference to the financial channels that permeate the modern world.
The SWIFT system was formed in 1973, bringing together over 200 banks from Europe and the United States in one community. The goal of the cooperation was to speed up transactions and ensure high accuracy and reliability of banking operations.
Today, the community's head office is located in Belgium, and more than 10 thousand banks from 220 countries take part in the cooperation. They conduct more than a million transactions per day. In addition to banking institutions, the services of SWIFT transfers are actively used by securities exchanges, brokers and other financial market participants.
Each Bank in the SWIFT system is assigned a unique code (similar to the BIC in our country), formed according to ISO9362. This ensures the protection of funds and ensures the accuracy of transfers.
Advantages of SWIFT:
- fast sending of funds anywhere in the world;
- there are no restrictions on the maximum or minimum amounts – with the exception of those provided for by the legislation of a particular state;
- multicurrency you can send and receive money either in rubles or in yen;
- available Commission fees the amount of remuneration is less than that of other operators;
- broad territorial coverage-SWIFT works wherever there is a branch of any Bank;
- transaction execution guarantee the system compensates for all losses incurred as a result of technical errors or failures.
The disadvantages of the operator include:
- due to the number of intermediaries and the specifics of each of their operations, the delivery time may increase to 5-7 days;
- the complexity of the chain through which data is transmitted increases the probability of error;
- you need to know the exact banking details, including the unique code assigned in the system to the Bank where the money will be issued.
Commission and rates
Compared to other operators that also provide financial services, the SWIFT system offers the most favorable rates. There are no fixed prices here – the total amount consists of Commission fees that are set by the participating banks themselves. Often, the cost of a transfer is cheaper than that of instant money transfer systems.
Depending on the bank, commissions can reach up to:
- for sending money - from 0.1 to 2% of the amount, at least $10-60;
- withdrawal of a payment-from $20 to $100.
For example, Sberbank sets a rate of 2% for dollar transfers, but not less than $15. That is, it is profitable to send amounts over $75 through this Bank. Binbank will take 1.3%, but not less than $30. In MDM, the figures are $ 1% and $25, respectively.
The final cost of the transaction is calculated by the operator at the time of making the transfer. It is important to remember that the Commission fee is paid by the payee. If you need to transfer the exact amount (for example, as a payment for services), the amount of money sent is increased by the Commission amount.
SWIFT transfers from Russia
The system's rules do not set minimum and maximum limits for both the amount of transfers and their number. However, the local legislation of the participating countries comes into play, which determines how many transactions in one day and within what limits can be carried out on behalf of a single sender.
In Russia, this framework is stipulated in Federal law No. 173 "on currency regulation" if a transfer is sent to an individual to a foreign account, then no more than $5,000 is allowed to be transferred per day (the equivalent in another currency is calculated from the Central Bank's exchange rate on the day of the transaction). In case of frequent transfers, according to Federal law No. 115, the Bank's financial control service may request documents confirming the legality of the source of income.
To transfer a large amount, you must provide proof of its intended purpose – for example, an invoice for payment for educational services at a foreign University.
Let's look at the mechanism of making a transfer from Russia using the SWIFT system on the example of Sberbank – it has the most extensive network of branches among domestic banks. The Bank code looks like this: SABR RU MM XXX – the last digits identify specific branches. You can find out the exact banking details in the Bank itself or on the official website. Sberbank supports transfers in euros, dollars, rubles, Swiss francs, and British pounds.
When using foreign currency, the Commission fee is about 1% (minimum 50 monetary units and maximum 200), and for ruble transactions-2% and from 50 to 1500 rubles, respectively.
SWIFT transfer to Ukraine
To send money to Ukraine, you must:
- select the nearest bank branch;
- show the operator your passport (or other document confirming the sender's identity);
- specify the recipient's account number, full name (in Latin transliteration), and city of residence of the recipient;
- send the SWIFT code of the Bank where you plan to receive the money;
- Deposit money to Yandex. checkout: keep in mind that if it is important to transfer the exact amount, a Bank Commission is added to it.
How SWIFT transfers are made: how the system works
Features of the system allow you to transfer funds from an existing Bank account, without it, and receive, respectively, in cash or credited to the account. To perform these actions, you must have the following information:
- SWIFT code of the Bank where you plan to receive funds;
- its full name;
- Full name of the addressee (individual) or full name of the legal entity;
- Recipient's 16-digit account number (IBAN format);
- name of the Bank branch where the money will be received;
- details of intermediary banking institutions.
From Russia, SWIFT transfers are most often sent from foreign currency Bank accounts.
How much does a SWIFT transfer cost?
SWIFT transfers lose out in terms of speed to instant money transfer operators (Contact, Western Union, etc.), but they win out in terms of the cost of shipments. The average time for passing money is from 1 to 3 days. In some cases, the procedure takes up to 7 days (if the chain of intermediary banks is large). However, money can reach popular destinations (large banks) in a matter of hours.
SWIFT in a currency transfer
The system works with all world currencies, but local transfer options depend on the specifics of the sender's and recipient's banks. In other words, when sending money via Sberbank, you can choose between euro, dollar, Swiss franc, and British pound sterling the bank does not have a license to work with other currencies.
It is worth remembering that all currency shipments are monitored by the relevant services for compliance with the requirements set out in the law "on currency regulation". In particular, the bank is required to report to Rosmonitoring information about all transfers exceeding the $5,000 limit. In addition, amounts above this figure must be confirmed – provide documents on the intended purpose, the legality of the source of income. Otherwise, the Bank has the right to block the account or freeze the money until the circumstances are clarified.
Urgent SWIFT transfer
On average, money transfers via the SWIFT system are carried out within 1 to 3 days. Unfortunately, there are no special options to speed up this process.
Experts advise choosing large financial institutions as the sending Bank and the receiving bank – in this case, the transaction time may be only a few hours due to the lack of unnecessary links in the chain of correspondents.
The more remote and smaller the bank branch, and the less developed the banking industry in the destination country, the more time it will take to complete the operation. Transfers to leading banks in Europe, the United States, Singapore or Hong Kong will take place within a day, but delivery to Ukraine, Eastern Europe, Latin America will take 3-5 days, and to Africa-up to a week.
Transfers within Russia are always received during the business day.