SWIFT payments
Cross border payments are international transfers that are settled between banks that have a correspondent banking relationship. Correspondent banks typically work on a reciprocal basis whereby a bilateral arrangement is agreed for the handling of payment instructions via Nostro/Vostro accounts. Payments instructions are sent over the SWIFT network and routed according to the banks and beneficiary destinations involved.
SWIFT is the primary communications network between banks, it has world leading levels of security and reliability – it is a pre-requisite that a bank that receives or sends international payments is a member of SWIFT.
Cross border payments typically take longer and are more expensive to process than domestic payments. There is normally a need for more information to enable the transmission of international payments than would be used within a domestic payment. In addition to beneficiary information such as account number and bank details, the beneficiary bank BIC (Business Identifier Code) or IBAN (International Bank Account Number) may be essential to ensure correct routing of an international payment instruction.
SWIFT payments through the Banking Circle:
- 25 currencies
- Cut-off will vary depending on the currency
- Account configuration – DK BIC & IBAN
- Correspondent charging options
- OUR (the sender of the payment pays Banking Circle fees, plus any correspondent fees. It doesn’t include the beneficiary bank landing fees)
- SHA (the sender of the payment pays Banking Circle fees, and the beneficiary pays any correspondent and their bank fees)
