How Does a SWIFT Payment Work?
If you’ve ever sent or received money across borders, you’ve likely used the SWIFT payment system—a global standard for secure, fast, and reliable international transactions. But what exactly is a SWIFT payment, and how does it work?
In this guide, we explain everything you need to know about how a SWIFT payment works, including key steps, fees, processing time, and how to track one.
💡 What Is a SWIFT Payment?
A SWIFT payment is an international money transfer sent via the SWIFT network, short for the Society for Worldwide Interbank Financial Telecommunication. It connects more than 11,000 financial institutions in over 200 countries, allowing banks to securely exchange payment instructions.
👉 Note: SWIFT does not move money itself. It transmits standardized payment messages between banks.
🔁 How Does a SWIFT Payment Work? Step-by-Step
Here’s how a SWIFT transfer works from start to finish:
✅ 1. You Instruct Your Bank to Send a Payment
You provide the bank with:
- Recipient’s full name and address
- Recipient’s bank account number or IBAN
- Recipient bank’s SWIFT/BIC code
- Bank name and address
- Payment amount and currency (e.g., USD, EUR)
- Payment reference or invoice number
✅ 2. Your Bank Sends a SWIFT Message
Your bank creates a SWIFT MT103 message, a secure format containing the transaction details, and sends it through the SWIFT network.
✅ 3. Intermediary Banks May Be Involved
If your bank and the recipient’s bank don't have a direct relationship, the payment will pass through one or more correspondent (intermediary) banks, especially for major currencies like USD.
✅ 4. Recipient’s Bank Receives the Funds
Once the message is validated and approved, the recipient’s bank credits the beneficiary’s account.
⏱️ How Long Does a SWIFT Transfer Take?
A typical SWIFT payment takes 1 to 5 business days depending on:
- Time zones and weekends
- Intermediary banks
- Currency type
- Compliance checks or errors
💰 What Are the Fees for a SWIFT Payment?
There are generally three types of fees involved:
- Sender’s Bank Fee: Charged by your bank to process the transfer
- Intermediary Bank Fee: If the payment goes through one or more correspondent banks
- Receiving Bank Fee: Charged by the recipient’s bank for receiving the funds
🔄 Payment cost options:
- SHA (Shared) – You pay your bank’s fee; the recipient pays theirs
- OUR – You pay all fees (sender covers everything)
- BEN – The recipient pays all fees
📦 How to Track a SWIFT Payment
Once your bank sends the MT103 message, you can:
- Request the MT103 document (like a payment receipt)
- Track via SWIFT gpi (if supported), offering real-time status updates
- Contact your bank or the beneficiary’s bank to confirm receipt
🔐 Is a SWIFT Payment Safe?
Yes. The SWIFT network is one of the most secure and trusted financial systems globally. All SWIFT messages are encrypted and validated, ensuring a high level of protection.
✅ Key Benefits of SWIFT Payments
- Supports 100+ currencies
- Used globally by banks and institutions
- Secure and standardized messaging
- Ideal for large international business payments
📈 Conclusion: SWIFT Makes Global Payments Easy
Now that you know how SWIFT payments work, you can confidently use this system for international transfers. Whether you're paying a supplier overseas, receiving funds from a client, or making personal remittances, SWIFT is a trusted method for cross-border transactions.
