SWIFT & SEPA - How International Money Transfers Actually Work ?

10/31/2018 SWIFT & SEPA: How international money transfers actually work 💸
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23 FEBRUARY 2018 / REVACADEMY
SWIFT & SEPA: How international
money transfers actually work 💸
https://blog.revolut.com/swift-sepa-how-international-money-transfers-actually-work/ 1/21
Back in the ‘80s, the quickest way to send money from London to New York was to physically
take cash with you on a plane, just like in the movies. Surprisingly, this still holds true today, but
have you ever wondered why? 🛩
Last week we explained how money transfers work between two accounts held with the same
bank (intra-bank transfers), as well as transfers between two different banks (inter-bank
transfers). In case you missed that post, we recommend going back and reading it before you
move on - it will help you understand the world of SWIFT and SEPA transfers.
International Money Transfers 💸

International money transfers are basically inter-bank transfers, only in this case, the two banks
happen to be in different countries, which makes things slightly more complex. The principle of
correspondent banking still applies, which means that the two banks need to have an
established relationship in order to facilitate the transfer.
The two most common ways to transfer money internationally are known as a SWIFT and a
SEPA transfer.
What is a SWIFT transfer? 🌐

The Society of Worldwide Interbank Financial Telecommunication or SWIFT is a nancial
Revolut Blogmessaging system that runs on a network of tens of thousands of nancial institutionsShare
fromthis
around the world.
The SWIFT system enables these institutions to securely send and receive information on
nancial transactions in a standardized way. This ultimately allows money to be sent from one
bank to another, virtually anywhere in the world and in many different currencies.
But this system is far from perfect. SWIFT does not actually send money, it simply sends
messages between the banks. Because of this, other systems that require more human
intervention must be used to transfer the actual funds and this, in turn, makes SWIFT transfers
slow. What’s more, the complex nature of these transfers usually incur a fee which nearly
always gets passed on to consumers.
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How does a SWIFT transfer work? 🤔

Let’s assume John wants to send £20 from his bank account in the UK to Alice’s account held
with a bank in Singapore. Depending on the bank’s relationship, there are two ways in which this
transfer can take place:
Banks have a direct relationship ❤

If both banks have a direct relationship with each other, or in other words, if Bank 1 has a
Revolut Blogcommercial account with Bank 2 and viceversa, the transaction would look like this: Share this
John’s bank (Barclays UK) will send a SWIFT message to Alice’s bank (Lloyds Singapore),
informing them of the transfer. Once the message is received (usually within minutes), the
funds can be transferred directly between the two banks:
1. John’s bank (Barclays) will debit John’s personal bank account by £20. ➖
2. John’s bank will credit Lloyds’ commercial bank account held with Barclays by £20. ➕
3. Alice’s bank (Lloyds) will credit her personal bank account by £20. ➕
Since the banks have a direct relationship, they are able to easily moves the funds
across, which keeps fees to a minimum and makes the transfer happen quickly.
Banks have no direct relationship 💔

If the banks don’t have a direct relationship, one or more intermediary banks must be found to
facilitate the transfer.
So, John’s bank (Bank 1) will once again send a SWIFT message to Alice’s bank (Bank 2),
10/31/2018 ( ) SWIFT & SEPA: How international money transfers actually work 💸 ( )
Revolut Bloginforming them of the incoming transfer. But since neither banks hold accounts with one
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another, SWIFT will nd an intermediary where both banks have commercial accounts - let’s call
it Bank X. Once the intermediary is found, the funds can be processed at the end of the day (or
based on some other predetermined schedule):
1. Bank 1 will debit John’s personal account by £20. ➖
2. Bank 1 will ask Bank X (the intermediary bank) to debit their commercial account (Bank
1’s) by £20 ➖, and credit Bank 2’s commercial account. ➕
3. Bank X deducts a small fee for acting as an intermediary (let’s say £0.40 ➖) from the
amount being transferred, and credits Bank 2’s commercial account by £19.60. ➕
4. Bank 2 will then credit Alice’s personal account by £19.60. ➕
Since there were more operations happening behind the scenes, this transfer is more expensive
(notice the hypothetical £0.40 fee) and takes longer to complete (usually between 3 to 5
working days). In this case, there was only one intermediary bank (Bank X), but some transfers
can require two or more intermediaries, which introduces even more fees and delays. 🤨
But what if the transfer was from one currency to another? 💱 One of the banks would have
made the currency exchange, usually at a less than desirable rate, adding to the total cost of the
transfer. Adding all the different fees and marked up exchange rates reveals that SWIFT
transfers can cost around £30 to £50, simply for moving your money from A to B! 😮
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SEPA Transfers 🌍
10/31/2018
SEPA Transfers 🌍 SWIFT & SEPA: How international money transfers actually work 💸
SEPA stands for the Single Euro Payments Area and represents a new format for international
bank transfers within Europe. The SEPA zone comprises 34 countries, including 28 EU member
states alongside Iceland, Monaco, Switzerland, Liechtenstein, Norway and San Marino. It was
created to simplify cross-border money transfers in Euros, the only currency SEPA supports. 💶
In many ways, a SEPA transfer is similar to a domestic transfer. In essence, banks that support
SEPA transfers either have direct relationships established or a network of intermediary banks,
thus allowing transfers to run across country borders.
Let’s revisit our previous example and assume that John is sending Alice €20, and that both
banks are part of SEPA. If the two banks have commercial accounts held with one another, then
the ow of money is the same as our rst example in this post:
1. John’s bank (Bank 1) will debit John’s personal account by €20. ➖
2. John’s bank will credit Bank 2’s commercial account held with Bank 1 by €20. ➕
3. Alice’s bank (Bank 2) will credit her personal account by €20. ➕
If they do not have an established relationship, the transfer will pass through a central bank
account in Europe, let's just call it the European Central Bank for the sake of our example. In a
very simpli ed way, this is how the money would ow:
1. John’s bank will debit his account by €20 ➖
2. John’s bank will credit their commercial account held with the European Central Bank
(intermediary bank) by €20 ➕
3. The ECB will then credit Alice’s bank by €20 ➕
4. Alice’s bank will credit her account by €20 ➕

There is actually more that goes on behind the scenes, but for the purpose of this
article, we won’t go into more details.
More important than how it works, is what SEPA transfers have to offer:
Allows you to make cross border payments in Euros ✔
Transfers usually take 1 day to reach the recipient's account ✔
Transfers are generally free for both the sender and receiver ✔
Some banks will still charge a fee for making or receiving a SEPA transfer. Please
check with your bank before making a SEPA transfer to or from your Revolut account.
Ok, but where does Revolut ﬁt in?
Revolut supports both SWIFT and SEPA transfers to or from your Revolut account. When you
send money from Revolut to any bank account, the system automatically selects the best type
of transfer for you. 💪
This means that if you’re making a transfer in Euros to a bank located in Europe, the transfer will
most likely be a SEPA transfer. But if you’re sending money to another bank in Singapore, for
example, Revolut will make a SWIFT transfer since SEPA isn’t supported there. 🗺
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10/31/2018 y y SWIFT & SEPA: How international money transfers actually work 💸 y
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This automatic transfer selection ensures that your money reaches the recipient’s bank account
as soon as possible. It also give you the peace of mind knowing that you never have to pay
excessive fees or marked up exchange rates - #ProblemSolved 😎
But where Revolut reigns supreme is in our ability to offer instant internal transfers in any of the
supported currencies, virtually anywhere in the world. Using the app, you can instantly send
money to any other Revolut user in the world. Yes, you heard that right - Revolut transfers are
instant and completely free, from the moment you hit 'Send', because our technology takes
away the need to go through clunky and oudated banking systems such as SWIFT or SEPA -
#BeyondBanking 💪
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BlueHorizonUK • a month ago

If I want to pay for my annual Disneyland Paris tickets by Direct Debit can this be done? i.e do
you support Direct Debit SEPA and if so what details do I need to give them?
1△ ▽ • Reply • Share ›
Stephen Crothers • 5 months ago

Hi,
I recently was sent money by someone to my revolut (by bank transfer) using the SWIFT details
in my revolut account.
I dont believe I gave the person that was sending me the money the "referrence number".
Will i still get the money? It has been 5 days now and no sign of it in my Revolut, and I am
unsure what to do. I believe that the money did come out of the other persons account however.
Thanks
1△ ▽ • Reply • Share ›
Revolut Blog John Wayne > Stephen Crothers • 17 hours ago Share this
HUH? You are not serious are you?
△ ▽ • Reply • Share ›
Rob Braileanu Mod > Stephen Crothers • 4 months ago
Hi Stephen, no worries - these things happen from time to time. The other persons'
money would have gone out but we should be able to locate your lost transfer. Please
contact our in-app support who will jump on to help.
Nebai • 4 days ago

I've some doubts about the international transfers. I´m going to live for 6 months in UK and I
want to use the card of Revolut to withdraw money without bank charges.
1. Do I've to make a British Pound account or can I proceed with my Euro account?
2. Can I have in my Euro account, a part of the money in euros and the other part in pounds?
2. If I want to make a transfer from Spain (Euros) to my euro account, I have to make it to the
LOCAL IBAN? and if it is to the British account, which IBAN?
Our Little Tripes • 13 days ago

Hi,
I actually transfer to a friend's account $AUD to his Revolut account on which he should'nt get
any fees in my understanding ? I get a fee of AUD$ 8 from my Australian bank, but my friend
has only received AUD 47,5$ on the 50$ sent...Can you explain me why ?
juliet Andrew • 21 days ago

Please can anyone help me with some information my friend want to send me money from
belgium with kbc bank cheque to tbilisi Georgia but her bank told her it was thier first time of
sending money there but they need to see first if the money can be send or not
t i t j 2 th
turizemptuj • 2 months ago
Revolut Blog Today's result: Amazon 0 : Me 1. A horrible tale of clunky service in which one mistaken click by
Share this
a seller is alleged by Amazon to have landed me in the arms of German debt collectors for
money paid two months earlier, at the outset. My conclusion at this time is that SEPA and
Amazon and Unicredit Slovenia do not understand each other as well as they ought to, and this
may be an accident or it may not. Ongoing. www.a2z.si/amazon
Lorenzo Di Stasi • 2 months ago

Hello,
I did for the first time a transfer from an Euro account (from Italy) to my Revolut account with the
SWIFT mode. But I think I did a mistake: as personalized IBAN i put the one in the SWIFT
window (which is different from the Local Revolut IBAN). Are they both okay? Will i get my
money or the transfer will be rejected? Le me know, thanks
Matyas Eorsi • 3 months ago

Hi, I am wondering why I did so, but I opened three accounts with Revolut. Question 1 is
wherther Revolut will alwayís use the account which has sufficient amounts when I use my card,
or the card will use the account that was pre-set earlier?
When I arrange transfer to a country the currency I do not have, Q 2 is whether Revolut will pay
in the currency of the target country or in the currency I am paying from?
Thanks!
Helen Tallgren • 3 months ago

Hi there.
I have money in AUD in my OZ account. I want to transfer them to my revolut. I thought it should
be free, but not sure anymore. What is my best option?
Thank you!
Lila Gouache > Helen Tallgren • a month ago

Hi, I want to do the same kind of transfer, did you figure out how it works?
Revolut Blog △ ▽ • Reply • Share › Share this
Patrick Bloss • 3 months ago

I love the enthusiasm at the end but I can't help but feel unimpressed. Internal transfers are
supposed to be instant. There is no justification for them not being instant as you explained
yourself a transfer is just updating the records in a database.
What about transfers to other banks? Aren't there SEPA instant payments now? Why is a
transfer from Revolut to N26 (both supposedly modern fintechs), or vice versa, not instant? Even
Sparkasse is introducing real time transfers.
I'm just utterly baffled that in the year 2018 bank transfers are still like that.
Grigore > Patrick Bloss • 11 days ago

I'm still waiting for my money from ING BE to reach Revolut. In the statements from ING I
see they reached Lloyds, I see the commission fee Lloyds charged the same day, so the
money were transferred fast.
But to the Lloyds account behind my Revolut account, not to my Revolut account, they
still don't show up in Revolut one week after.
I had to spend time on chat with support, they finally "located" my transfer from ING BE
but still, no money in my Revolut account.
I contacted them again and now they say to wait as they are "processing" my transfer,
they will inform me when it's ready.
That was on Tuesday or so, now is Saturday and still no money.
Pucko Petrol • 4 months ago

Hi,
Can someone tell me what is it visa net account and how to open.
Juliana Lindquist • 4 months ago

Hi, is it possible that a provincial US bank refuses to transfer money to my REVOLUT account
f US d ll t ith th i b k? Sh ld th
https://blog.revolut.com/swift-sepa-how-international-money-transfers-actually-work/
b bl ith thi ?? B th th US 14/21
from my US dollar account with their bank? Should there be a problem with this?? Both the US
Revolut Blog bank account and my REVOLUT account are in my name. I have given them the REVOLUT Share this
IBAN and BIC.

asanael • 4 months ago

Hi, thank you for this post! Is it possible to receive third-party payments in USD within sepa? Eg.
the payment comes from Czech Republic but is denominated in USD. Can I still provide the
Euro IBAN details in order to receive this payment? What are my options in this case? Your help
is greatly appreciated!
Rob Braileanu Mod > asanael • 4 months ago
Hey there. You can receive payments in USD, provided the sender is wiring you the
money into your Revolut USD account. It doesn't matter what country the funds are being
sent from, all that matters is that the currency goes into to the matching currency
account, ie. USD into your Revolut USD account. You cannot receive USD into your EUR
account. If you don't already have a USD account, then open your Revolut app, go to
More, Profile, Accounts, tap Add account and select USD. Once your account is
activated, send the details provided in order to receive the funds. Hope this helps!
Torsten • 4 months ago

Hello Mr. Braileanu, I have a question about a transfer abroad. I use an own US dollar account
in Malta. There, however, only deposits are accepted, in which an IBAN of the sender is visible.
Would work Revolut make a payment to Malta? Does or use Revolut an own IBAN? Greetings
from Germany, Torsten
Rob Braileanu Mod > Torsten • 4 months ago
Hey Torsten, you can transfer money from your Revolut to your other account by simply
adding in the bank details of your bank account in Malta and making sure you run the
transfer from your USD account in the Revolut App. You can also transfer money from
your bank account into Revolut. To do so, please tap on your USD account and use the
details provided.
p
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Torsten > Rob Braileanu • 2 months ago

Hello Mr. Braileanu, meanwhile my transfer has not been accepted by the bank in
Malta. I wanted to deposit dollars into my own account in Malta. Reason: No IBAN
visible and as sender I could not be identified. :(
Torsten > Rob Braileanu • 4 months ago

Many thanks for your answer! I will try it.
Sakh Chy • 6 months ago

I like what I'm reading but I find a few things confusing with respect to the Euro accounts. I have
now opened up a euro account on my revolut.
1) If I make a normal transaction in France (EUR) using my card will the charge come out of my
EUR currency or my GBP currency?
2) If I want to receive a salary (EUR) into my revolut account, what bank account details do I
send to my employer as revolut doesn't currently give us individual IBAN account numbers.
Best regards,
Sak
Rob Braileanu Mod > Sakh Chy • 6 months ago
Hi Sakh,
1a. With Revolut, you only pay in the local currency, wherever you are in the world. Since
you have a Euro account, if you're spending in France or any other EUR country, the
balance will be deducted from that account.
1b. In case you don't have enough funds in your Euro account while spending anywhere
in Europe, we will automatically charge the account with the highest amount of funds (for
example, GBP) and convert it into Euros at the interbank rate, the moment you make the
payment
payment.
2. You can receive your salary into your Euro Revolut account as we currently support
direct debit transactions. Simply give your employer your LOCAL account details for the
Euro account.
Hope this helps!

Mario • 6 months ago

Good morning.
Could someone please inform what is the EURO CORRESPONDENT BANK BIC of your bank
REVOGB2L
AND REVOGB21?
Regards
Pete M. • 7 months ago

Ripple Ripple Ripple XRP XRP XRP use it!!!!
Lucía Morales • 8 months ago

Hi! How many days takes to transfer money from my Revolut's account to a spanish account?
Thanks in adavance
Rob Braileanu Mod > Lucía Morales • 6 months ago

Provided the transfer is in Euros, this should happen in the same day or the next day
(latest).
Erick Pessôa > Lucía Morales • 7 months ago

Normally the next day is in your bank account. At least this is how it happens here in
France.
Revolut Blog △ ▽ • Reply • Share › Share this
Arkadiusz Wlazłowski • 8 months ago

Revolut make one big mistake when send swift transfers - cut recipients name to 33 signs only.
When recipients name are longer it can be problem in some countries, because they stop
transfers with information " recipient name is incorrect" and wait for additional information. So
you have to change it.
John Thorpe > Arkadiusz Wlazłowski • 8 months ago

I don't believe that this is Revolut's mistake...
The SWIFT standard for message transfers limits the size of name and address fields. In
one variant, the limit is 33 characters. This should *not* have stopped the transaction
because this is a known restriction, it is likely that there was another reason.
— Revolut Blog —
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