How long do international bank transfers take?

Whether you’re an individual sending money to a relative abroad, or you’re a business using overseas suppliers - if you’ve sent an international payment, the chances are you’ve had questions about international bank transfer times.

Cross-border payments are a staple requirement for many businesses today, especially those trading internationally, but they can take longer than domestic bank transfers. In a digital world where we’re used to sending and receiving payments almost instantly, many people ask “How long do international bank transfers take?"

There’s no universally true answer to this question, but keep reading to find out more about the approximate timeframes for international payments, as well as how they work and the most common reasons they get held up.

How do international bank transfers work?

To the sender, international bank transfers might seem very straightforward, but behind the scenes, there’s a multi-step process taking place in order for the recipient to access the funds.

Here’s an overview of how it works:

1. The sender initiates the transfer. If you’re the sender, you initiate the transfer via mobile app, website, telephone banking or visiting a branch. You’ll need a number of details to do this, including the recipient’s full name and address, the name and address of their bank, their account number and account type, and lastly their routing number or SWIFT code.

2. Bank-to-bank communication. Once your transfer is initiated, your bank will typically communicate with the recipient's bank through the Society for Worldwide Interbank Financial Telecommunications (SWIFT) network. SWIFT is a secure messaging system that assigns unique codes to banks worldwide, facilitating cross-border transactions. For transfers within the Single Euro Payments Area (SEPA),a simpler process may be used, as SEPA countries have standardized payment systems. However, even within SEPA, intermediary banks can be involved, which may add complexity and potential delays to the transfer process.

3. Currency exchange. If the currency being sent is different to that used by the recipient, then at this point, your bank will convert the funds using their exchange rate. With most banks, you should have the opportunity to check the exchange rate before you confirm the transaction.

4. The payee receives the funds. After the currency exchange, the money will be deposited in your payee’s account, so they should be able to access them.

International bank transfer delays

International bank transfer delays can be frustrating, but given the complex nature of overseas payments, they’re not uncommon. Here are some of the most likely reasons for international bank transfer delays:

• Fraud prevention and due diligence. Banks and financial institutions are legally obligated to conduct rigorous Know Your Customer (KYC) and Know Your Business (KYB) checks. These procedures help prevent fraud and money laundering. If any unusual activity is detected during these checks, your payment may be delayed or even blocked. Additionally, to comply with Anti-money laundering (AML) regulations, additional checks and screening procedures are carried out to prevent illegal activity.

• Bank holidays and time zones. It sounds obvious, but if you’re trying to send an international payment on a weekend or bank holiday in your country - or the country the recipient is based in - your transfer could take a little longer than it would on a working day. Similarly, you can sometimes avoid a delay by sending an international bank transfer at a time that’s during the working day for your recipient.

• Incorrect bank details. Perhaps the most common cause of delay (and one that’s easily fixed) is that a mistake has been made when entering the recipient’s details. Double-check each line of information you add when setting up the payment to avoid needless delays with international bank transfers.

• Currency exchange. You might also experience a delay if your recipient needs to receive the funds in a different currency to those it’s sent in, due to the time required for the currency exchange process.

How long do international bank transfers usually take? 

The standard time for an international bank transfer is between one and five business days, depending on the variables outlined above. With that in mind, if you need to send an international bank transfer quickly, we recommend taking all the possible steps to avoid delays, or leaving a generous window before the payment deadline to ensure it reaches the payee in good time.

Multi-currency accounts with Muloot

If you need to send international bank transfers regularly, Muloot’s multi-currency account could be the ideal solution. With unlimited international payments, and maximum control over when you convert your currency (and at what rate), our multi-currency accounts are designed for the specific needs of businesses trading abroad.

To find out more or set up an account, get in touch with our team of UK-based experts.