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International Bank transfer

Posted 2020-03-06

How to transfer money between Brazil and foreign countries ?

 

An international bank transfer involves transferring money from your account to the beneficiary account. The duration of an international bank transfer is very variable depending on the specifics of the issuing and beneficiary accounts, the geographical area of ​​the banking establishments of the two parties, the number of intermediaries, the type of transfer and, finally, the possible change currency.

You’re based in Brazil and dealing financial transfers with international partners ? As an international business player, you have to send money to your brazilian partners ? In both cases, you should know how to proceed to a secure international bank transfer.

In this new article, we will provide a global idea of each type of international banking transfers.

How is an International Bank transfer conducted ?

 

To make an international transfer, you will need to provide a number of information to your bank:

Your account number;

The amount you wish to transfer;

The date on which the transfer must be made (if it is a regular transfer);

The IBAN (International Banking Account Number) code of the beneficiary account;

The BIC code of the bank of the beneficiary account (for Bank Identifier Code). You can also find it under

The code term SWIFT (for Society for Worldwide Interbank Financial Telecommunication, which is the name of the company that registers international banks);

This SWIFT code therefore makes it possible to facilitate international banking exchanges, and to securely make transfers, payments, purchases or sales between two banks that are not in the same country or do not have the same quote.

The cost of International bank transfers

 

When you transfer funds abroad, several commissions increase the price of the transaction :

Exchange rate surcharge : most banks and payment platforms such as Western Union or PayPal apply a surcharge on the exchange rate from which they benefit. They make a profit on each foreign currency transaction. With an increased rate, for the recipient to receive an amount X, you will therefore be obliged to pay the transaction more expensive than if the conversion was made at the market rate.

Transfer fees : transfer price charged by the bank. In most cases, this is a proportional commission on the amount sent. The amount collected covers the fees that the bank must pay to use the SWIFT network.

Correspondent fees : depending on the country where the recipient is located, the amount you send may pass through different banks before arriving on their account. This will incur an additional cost, which will be impossible to predict if you have never sent him money before.

Distribution of costs : as a general rule, sending commissions are shared on transfers in foreign currencies. The sender pays a transfer commission and the recipient pays the reception costs. However, in some cases, the sender may have to pay the entire cost.

How to make bank transfers between Brazil and foreign countries ?

 

You need to send money from Brazil to your foreign Brazil ? Based in the US or in the UK, you need to proceed to a bank transfer to your brazilian partner ? Select your banking transfer solution among the following ones.

Once you have retrieved the recipient’s contact details, all you have to do is choose the transfer mode. Each of them has advantages and disadvantages. 

Here are the options you have :

At the counter of your bank : ideal if you do not master new technologies. Let the agency advisor handle the transaction. However, be aware that bank transfer is probably the most expensive option among those discussed in this article.

Online with your bank: transfer from your online account. Just as fast, but cheaper than if you went to the counter. Problem: the recipient’s bank details must be pre-approved by the bank before you can make the transfer. So it’s a solution that lacks flexibility.

PayPal: simple and efficient payment solution… for commercial purchases. PayPal is not suitable for transactions between individuals, as the shipping and receiving costs are quite high. The beneficiary will have to transfer the amount to his bank account, which will incur costs. In addition, there are some countries where you cannot send money.

Western Union: suitable for sending cash from one country to another. It is possible to make transfers from account to account, but this is relatively expensive. In addition, the transfer times are quite long.

TransferWise: a good solution for international transfers. Conversion at market rate. The fees are 0.41% for a transfer in pounds sterling. No additional commission is charged.

 

 

Author's post: Europartner Accounting

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