Must Know! The Definition, Function, and How SWIFT Works
Have you know the definition, function and how SWIFT works in the world of finance transaction? Here's all the information you need to know.
Are you familiar with the term SWIFT in the world of financial transactions? SWIFT service is a system that has been widely used to support international trade and financial transactions. But, how does this system actually work? Let's dive into what it is and how it works.
What is SWIFT?
SWIFT, stands for Society for Worldwide Interbank Financial Telecommunications, is an organization founded in 1973 in Brussels, Belgium. The primary purpose of SWIFT is to create standardized processes and common practices for global financial transactions. The SWIFT network enables financial institutions worldwide to exchange information and messages related to financial transactions securely and efficiently.
With more than 11.000 financial institutions from 200 countries as members, the SWIFT network has become the backbone of the global financial system. SWIFT plays a crucial role in facilitating cross-border money transfers, especially in major currencies like the US Dollar.
How SWIFT Works
SWIFT plays a role as a messaging network that enables financial institutions to securely exchange payment instructions. When a transaction is initiated through SWIFT, money is transferred between countries with the involvement of intermediary banks. This multi-bank process can result in additional fees known as correspondent fees. SWIFT itself doesn't directly transfer money, but facilitates the exchange of payment instructions using unique SWIFT codes, providing a standardized platform for efficient cross-border transactions.
SWIFT Code
SWIFT code, also known as a Bank Identifier Code (BIC), SWIFT ID, or ISO 9362, is a standard format of a bank identifier used to identify a particular bank or branch. It's an 8-11 characters code that identifies the institution, country, location, and branch code of the destination bank/financial institution. The existence of this code allows for quick identification of the destination of a money transfer and ensures that payments are sent to the correct destination.
Sending Money Overseas with SWIFT
The SWIFT network is indeed extensive and secure for international money transfers. However, transactions using SWIFT sometimes encounter less favorable conditions, such as high costs that depend on the amount of transactions, relatively long processing times, uncertain exchange rates, and low transaction limits. But for those of you who want to send money abroad using SWIFT, there's no need to worry anymore, because Topremit can solve these problems. Here are the advantages of Topremit's SWIFT service.
Transfer Online Anywhere At Anytime
With Topremit's SWIFT service, you can enjoy the ease of transferring money abroad online, because you can send money abroad anytime and anywhere, directly from your smartphone.
Cheaper with Up to Date Rates & Flat Fees
With Topremit’s SWIFT service, you'll enjoy a flat transfer fee of IDR 75,000 and a correspondent fee of IDR 330,000. No matter how much you send, the transfer fee remains the same. So, you don't have to worry about any additional hidden costs.
You can also easily check the current exchange rate on the app while starting a transaction.So you’ll know the best time to send money abroad and the amount of money they will receive.
Faster Than Your Regular Method
Say goodbye to the money transfer services that take days to send your money abroad. With Topremit's SWIFT service, your money can be sent to the recipient's bank account on the same day if the transaction payment is completed before 12.00 WIB (GMT+7).
Extensive Network Across Countries
Topremit's SWIFT service enables you to send money to 80+ countries worldwide. With such a wide reach, you can rely on this service to fulfill your transfer needs.
Money Arrives on Behalf of Sender’s Name
Topremit’s SWIFT service ensures that your money will be sent to the destination bank account in your own name as the sender. So, this service is very suitable to fulfill all your transfer needs. For example, business purposes or tuition fees.
For more information, please reach out to our Customer Support team through Live Chat/WhatsApp at 0823 6196 0569. We are always ready to help!