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International wire transfers
Most international, country-to-country transfers are executed using the SWIFT system. The co-operative society Society for Worldwide Interbank Financial Telecommunication, or SWIFT, was founded in 1974 by seven international banks. SWIFT operates a world wide network to facilitate the transfer of financial messages. Using these messages, banks can exchange data for transfer of funds between different financial institutions. The Society's headquarters are situated in La Hulpe, on the outskirts of Brussels. S.W.I.F.T. also acts as a United Nations sanctioned International Standards Body (ISO) for the creation and maintenance of financial messaging standards.
Article 3 of S.W.I.F.T. states:
"The object of the Company is for the collective benefit of the Members of the Company, the study, creation, utilisation and operation of the means necessary for the telecommunication, transmission and routing of private, confidential and proprietary financial messages"
Each financial institution is provided an ISO 9362 code, also known as a Bank Identifier Code, BIC Code, or SWIFT Code. These codes are generally eight characters in length. [8]As an example, Deutsche Bank is an international bank; its head office is based in Frankfurt, Germany. Its SWIFT code for its primary office is DEUTDEFF:
DEUT identifies Deutsche Bank
DE is the country code for Germany
FF is the code for Frankfurt
Using an extended code of 11 digits (if the receiving bank has assigned branches or processing areas individual extended codes) allows the payment to be directed to a specific office. For example, DEUTDEFF500 would direct the payment to an office of Deutsche Bank in Bad Homburg.
European banks making transfers within the European Union also utilize the International Bank Account Number, or IBAN.
Transfers within the United States (ACH)
Banks within the United States utilize SWIFT to make payments to banks in countries outside of the United States. For bank-to-bank transfers that are conducted within the United States, the Fedwire system is used. This system utilizes the Federal Reserve System and its assignment of bank routing numbers (in a similar way to how Automated Clearing House, or ACH payments, use those numbers to effect the payment and collection of checks).
We provide details for both International and ACH wire transfers through two correspondent banks.
Verifying Receipt of Funds
The remitter who determines that the payee has not been credited should make every effort to verify the information provided to the sending bank. If this is found to be in order, he should encourage the payee to research the matter with the receiving bank, taking care to quote any reference numbers associated with the transaction.
If a payment goes awry because of incomplete or incorrect remittance instruction, or if alternate instructions must be issued, it is imperative that the sending bank be contacted at the earliest opportunity. If the payee claims non-receipt, the remitter may request a tracer.
Most banks will send one tracer without charge but impose a fee for subsequent inquiries. Before requesting a tracer, the remitter should consider the characteristics of the transfer. If is important to have realistic expectations about the length of time that similar transactions typically require for processing.
If the remitter decides to recall the funds, a request to do so may be submitted to the sending bank. However, the funds will not be returned to the remitter until they are actually received from the bank to which they have been sent. It must be noted that funds transferred outside of the United States are sent at the remitter's risk, and such transactions are subject to the commercial laws of the payee's country.
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Perfect Money Official
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