Bank Wire › International bank transfers: SWIFT, fees and exchange rates
International bank transfers: SWIFT, fees and exchange rates
Sending money abroad costs more and takes longer than a UK payment. The final cost is made up of fees and an exchange rate, and the second is often the bigger part.
How the system works
Many international bank payments use the SWIFT network, a secure messaging system that connects thousands of banks. Your bank sends an instruction through SWIFT to the recipient's bank, which may pass through one or more intermediary (correspondent) banks. The money itself moves through accounts that banks hold with each other. Other providers, such as money transfer firms, use different methods and may be faster or cheaper in some cases. Any UK firm offering payment services must be authorised or registered by the FCA (check the FCA's Firm Checker).
What you need
- The recipient's full name and address.
- Their IBAN (International Bank Account Number), where used, and the bank's BIC (also called SWIFT code).
- For countries without IBANs, the account number and local bank code.
- The payment currency and purpose, if asked.
What it costs
The total cost may include:
- Your bank's fee for sending.
- Intermediary bank fees, deducted along the way.
- The recipient bank's fee for receiving.
- The exchange rate margin, the difference between the rate you get and the mid-market rate.
To compare, ask for the exact amount the recipient will receive. Compare the final figure, not just the advertised fee.
Charge options: SHA, OUR and BEN
| Option | Who pays the fees |
|---|---|
| SHA (shared) | You pay your bank's fee; the recipient pays the rest |
| OUR | You pay all charges, so the recipient should receive the full amount |
| BEN | The recipient pays all charges |
If the recipient must receive an exact amount, ask your bank about OUR, but note that it can cost more and may not guarantee the exact amount arrives.
Exchange rates
The mid-market rate is the midpoint between buy and sell prices. Most providers add a margin. Some advertise "no fee" and recoup the cost in the rate. Check the rate against a reliable mid-market source on the day, and work out the difference in pounds. Rates can change by the minute unless you agree a fixed rate. Consider whether to pay in sterling or the local currency when abroad: it is usually better to pay in the local currency and let your bank convert, though you should check your own bank's terms.
How long does it take?
Often one to five working days, but it depends on the countries, currencies, cut-off times and checks, so ask your bank. Delays happen when details are wrong or compliance checks apply. Some corridors are much faster.
Safety
International payments are harder to recover. Be extra careful with new payees, overseas investments and "buyers" who overpay and ask for a refund. Read bank transfer scams and note that the PSR's reimbursement rules do not cover international payments (see the rules).
Wrong details
If you sent money abroad to the wrong details, ring your bank at once. See wrong account steps.
Questions to ask before you send
- What is the total fee, including any taken by other banks?
- What exchange rate will be used, and when is it fixed?
- How much will the recipient receive, exactly?
- How long will it take?
This is general information, not financial or legal advice. Rules, limits and fees differ between banks and change over time, so check with your bank and the official sources listed.
Frequently asked questions
What is a SWIFT code?
A BIC, the bank's international identifier used for cross-border payments.
Why did less arrive than I sent?
Intermediary or recipient bank fees may have been deducted.
Are international transfers covered by APP reimbursement?
No. The PSR rules cover Faster Payments and CHAPS between UK accounts, and international payments are out of scope.