Bank transfers represent the fastest way to send money, regardless of the country or other criteria, being one of many electronic payment methods. The duration of a transfer from one bank to another may vary depending on several factors, as detailed in the following paragraphs.
All bank transfers involve the electronic transfer of funds, specifically, the financial mechanism through which money is sent from one account to another.
There are also bank transfers for individuals and for legal entities, with the difference between the two being the account from which the money is sent.
For individuals, a transfer can be made to another individual or to a business/company. For this type of transfer, the person wishing to send money needs the recipient’s IBAN (for individuals) and the name and account of the company (for legal entities).
For legal entities, these transfers are made from the company’s accounts to another entity or to an individual, depending on the case.
Another classification of transfers is based on the area in which they are used, so there are local and international bank transfers.
Local bank transfers can be of two types:
- Intrabank transfers – these refer to situations where two individuals/companies have accounts opened at the same bank;
- Interbank transfers – these are carried out between accounts opened at two different institutions;
International transfers are used when money is to be sent abroad. It is important to mention that these international transfers involve different fees, depending on the bank where the person/company has an account. To send money internationally, banks use the SWIFT network, the system through which financial institutions communicate to make such transfers possible.
The fastest transfer is the intrabank transfer. This is because both the payer and the recipient have accounts at the same bank. Therefore, funds are transferred directly from the payer’s account to the recipient’s account, and the transfer is made in real time. In other words, the money reaches the intended account at the exact moment it is sent, regardless of the bank’s working hours.
Compared to the above-mentioned transfers, interbank transfers are processed within a few working days from the moment the money is sent. More specifically, the duration of the transfer varies case by case, depending on the transferred amount and the time the money was sent.
As mentioned, international transfers are carried out over several days. Since the SWIFT network is used (a system for communication between banks), the duration for this type of transfer can be up to 5 working days.
Thus, the duration depends on the time the operation was initiated, the destination country, and the currency used. Most often, international transfers are not processed on weekends and public holidays.
Regardless of the type of transfer, banks can perform urgent payments, in which case the recipient may receive the money on the same day. However, these payments incur fees that vary depending on the bank.