Despite the prevalence and popularity of international payments, not everyone today knows what swift is. So below we will talk about what is swift transfer, SEPA and how they work. After all, they are the most common systems in the world.
Features of systems
To begin with, let’s understand what the swift system is. This system is one of the most global, it includes more than two hundred countries and supports more than ten thousand different banks.
Whereas the bank transfer sepa is a payment exclusively within the euro area. Payments can only be made in the European currency. The account number is issued in the IBAN format. The association also includes Norway and Switzerland and Iceland.
For most entrepreneurs or individuals there is no difference whether to use SWIFT or SEPA payment. After all, most transfers are made in euros, so the two systems are equally comfortable to work with.
But when choosing, pay attention to the fact that the systems are controlled by completely different countries. For example, SWIFT is a system controlled by the U.S., and it is the department of this state that carries out financial monitoring. If it is more convenient and profitable for you to work with Europe, choose SEPA. Accordingly, the financial monitoring will be done by Europe. This also applies to tax structures.
Before we move on to how to send sepa transfers, let’s talk about how the system came about in the first place. It was launched in 2008, and over the next few years it became one of the most popular systems. After all, all banks in the European Union have started to use it.
The main purpose for which the sepa payment system was introduced was the need to unify all payments made within the countries of the european Union. After all, before that there were many systems that had a number of unique instruments and standards. As a result there were a lot of problems with payments. Now there are unified financial instruments and procedures for all private entrepreneurs.
So international card-to-card transfers are as simple as possible, you won’t get confused or lost in the procedures. So your current account will be used as efficiently as possible.
Another advantage is the ability to make a payment in a very short transfer time. It takes a maximum of one business day. In fact, transfers are made in exactly the same way as within one state. It is possible to work both between individuals and between businesses.
Features of SWIFT transfers
Also to entrepreneurs and individuals international money transfers SWIFT. This system also unifies the work at the international level, allows you to reduce the cost of transfers. The terms of financial transactions are minimal, so there will be no delays.
The main advantage that swift transfers have is accessibility. After all, the system works all over the world. It significantly simplifies the process of making payments and using the services of correspondent banks.
Such transfers are also among the safest. After all, each bank has a unique code, and transfers are made directly to the account of legal entities or individuals. The sender also determines the currency in which the transfer should be made.
If sepa transfer doesn’t suit you, there is an ideal option – SWIFT. With this system you can transfer money from one account to another very quickly, because there are a huge number of participants in the system. You can use this system in more than two hundred countries.
Finally, let’s talk about the advantages of the SWIFT system:
- you can make transfers to almost any country, thanks to a huge number of partners;
- transfer can be made in almost any currency, because the payment system successfully operates in a large number of countries;
- a wide range of available functions, so you can send a payment at any time;
- No restrictions in terms of amount, this applies to both individuals and legal entities;
- The cost of services is lower than with any other system.
If the transfer is less than 12 thousand euros, there is no need for additional paperwork, which is often time-consuming. You can make a transfer from your main account in any currency.
Today you can make transfers remotely, through online offices and mobile applications. So you don’t have to spend time going to banking institutions to cooperate.
As you can see, the benefits are many. If you haven’t already switched to SWIFT and SEPA payments, we recommend you do it as soon as possible.