How to make an international bank transfer
Whether you’re making a payment, sending a monetary gift or financially supporting your family, you may have to transfer money overseas from time to time.
Sending money by international bank transfer is usually everyone’s top choice. Not only is it seen as the safest and most secure way to transfer money, but it’s also the most convenient option for some.
However, what most people don’t realise is that there are other much better alternatives to international bank transfer.
What is a great alternative to international bank transfer?
There are other ways on how you can send money overseas apart from international bank transfer. The money transfer sector has become even more competitive over time, making it easier and faster for individuals to send international payments.
The best alternative to international bank transfer is an online money transfer service.
Online money transfer services are becoming increasingly more popular as they’re much faster, easier and more convenient to use. Many companies, like Kabayan Remit, now offer this type of service.
However, here’s some information about international bank transfers you might want to know.
How to make an international bank transfer
If you already have an existing bank account, you can send funds by international bank transfer through the following ways:
You can visit any local bank branch to make a transaction. The bank teller can help process the transfer, so this might be the best option if you’re not tech-savvy. However, it’s inconvenient and time-consuming to visit the bank, especially since they have limited opening hours.
You can also call your bank and make the transfer over the phone. Though it’s another option to consider if you’re not digital-savvy, you would have to wait to speak to an agent. The waiting time is quite long due to the high volume of calls banks receive.
You can also send money overseas online by wire transfer. Wire transfer is an electronic funds transfer that allows people to send money safely from one country to another.
To do this, log in to your bank’s online banking and look for “international payment” on the menu. Most banks have on-screen instructions that are relatively straightforward to follow.
If you prefer to send money overseas online on your phone, most banks have the option to make an international payment through their mobile app. It’s the most convenient option as you can make the payment in just a few taps on your phone wherever you are.
Details needed to make an international bank transfer
Before you can start your transfer, here are the details you need from your recipient:
The name of the person or organisation to whom you’re sending money. Some banks may also ask for their home address.
The name of your beneficiary’s foreign bank to whom you’re sending the payment.
The complete address of your beneficiary’s receiving bank branch.
Account number or IBAN (International Bank Account Number)
The recipient’s bank uses the account number to identify their account. Banks generally prefer to use the IBAN to accurately locate beneficiary accounts for international payments.
BIC or SWIFT Code
BIC (Bank Identifier Code) and SWIFT (Society for World Interbank Financial Telecommunication) codes often have the same function. These codes are used to indicate the bank and country the international payment is sent to.
Steps to make an international bank transfer
Making an international bank transfer is manageable as long as you have all the information you need. Once you have all the details in place, here’s a short guide on how you can make an international payment:
1. Check the exchange rate
Check the exchange rate with your bank. If you’re happy with it, you can go ahead with your transaction by letting the bank know how much money you wish to send. The exchange rate is locked in until the transfer is completed.
2. Provide the required details
Share your beneficiary’s details, including their name, address, account number / IBAN, BIC / SWIFT code and bank address.
3. Pay for the transaction
Depending on the bank, you can pay for the transfer either by debit card or credit card. After receiving your payment, the bank will deliver the money to your beneficiary.
If you’re unsure whether to use international bank transfer for your overseas payments, we’ve listed down some pros and cons to using this type of service.
International bank transfer pros
Most people send funds abroad by international bank transfer for the following reasons:
- Safe and reliable – International wire transfers are relatively safe, given the secure nature of banking systems. Banks use a robust security system that keeps the customers’ data and money protected.
- Convenient – You can easily make international payments as long as you have an existing bank account. You can also choose the most suitable option for you to process your transaction.
- Straightforward – Whether you choose to do your transfer in-branch, over the phone or online, the process is very easy to follow.
International bank transfer cons
Some people also find that international bank transfer is not the best option to send overseas payments for the following reasons:
- Expensive – Banks remain the most expensive money transfer channel, especially when sending money overseas. They don’t disclose the fees upfront, and they usually offer low exchange rates with high service charges.
- Time-consuming – If you wish to send money the traditional way, visiting your bank’s local branch can take time. You also have to take into consideration their opening hours, which can be affected by different factors like bank holidays. Additionally, telephone banking also takes time, especially when there’s a long phone queue.
- Long delivery time – It usually takes a few hours up to a few days for the money to reach your beneficiary when you send it by international bank transfer.
Why use an online money transfer service
Though international bank transfer may seem like the easiest way to send money overseas, online money transfer services like Kabayan Remit are an even better option and here’s why:
- Instant delivery – Delivery of funds can only take minutes up to a few hours.
- High exchange rates – Unlike banks that add a high markup on exchange rates, money transfer providers have little to no markup.
- Low fees – The fees offered by money transfer providers are far lower than banks.
- Wide range of services – Depending on the provider, you can choose from a variety of delivery methods and payment options.
- Safe & secure – Money transfer providers are also financial institutions regulated by the Financial Conduct Authority (FCA), so you can expect the same security levels like banks.
How to send money with Kabayan Remit
If you’re sending money from the UK, Ireland, Germany, Netherlands and Gibraltar to the Philippines, you can use Kabayan Remit.
Step 1: Create an account
Register online by entering the required details. You will need to verify your account before you can start sending money. It’s quick and easy as you can do it all on the mobile app.
Step 2: Send money
Log in to your account then add the details of the beneficiary you wish to send money to. Once added, you can start sending them money. Just enter the details required for the transfer and pay for the transaction.
Step 3: Beneficiary receives the money
If you need help with creating an account, you can always get in touch with us 24/7. Our customer service associates will happily assist you with your queries.
Your beneficiary will receive the funds within minutes up to an hour.