How to make an international wire transfer easily explained

Throughout this article, we cover the basic concepts behind international versus domestic money transfers, the key requirements for executing cross-border payments, the available methods (traditional banking, specialized providers, and fintech solutions), and the most relevant variables: fees, exchange rates, settlement times, and security measures.

The goal is to help any reader compare alternatives and optimize their international operations—whether sending remittances, paying suppliers, or scaling a global business.

An international wire transfer is a financial transaction through which a person, company, or institution sends funds from a bank account in one country to another account located in a different country. In this process, one or more financial institutions participate—traditional banks, fintechs, or specialized cross-border payment providers—acting as intermediaries to guarantee that the funds reach the final recipient safely.

Unlike domestic transfers, which are processed within the borders of the same country and typically complete within minutes or hours, international transfers involve additional challenges. These include differences in currency, financial regulations across jurisdictions, variable settlement times, and interoperability between distinct banking systems. For example, a transfer between Latin America and the United States may require currency conversion (from Mexican pesos to dollars), adherence to anti-money-laundering rules, and the participation of one or more correspondent banks.

Economic and social impact of cross-border payments

International wire transfers, or cross-border payments, are essential to the global economy, enabling the flow of money and connecting people, businesses, and governments. They directly influence economic growth, financial inclusion, and social stability.

• For companies, they are critical to paying suppliers and contractors and supporting expansion and cross-border e-commerce.
• For individuals, especially migrant remittances, they are a vital source of income that reduces poverty and improves access to services in developing countries. Technological advances have made these operations faster and more affordable.

To summarize, international wire transfers promote global economic integration, capital flows, and foreign trade—serving as a key pillar in an increasingly digital, accessible, and equitable financial system.

International wire transfers move money securely from one country to another through a global network of financial institutions. Their operation involves different intermediaries and processes that guarantee funds reach the beneficiary correctly while complying with regulations and financial standards in each country.

In most cases, these cross-border payments are handled through the SWIFT network (Society for Worldwide Interbank Financial Telecommunication), an infrastructure used by more than 11,000 banks and financial institutions in over 200 countries. SWIFT does not move money directly; instead, it sends encrypted messages containing the instructions needed to execute cross-border payments. Each participating bank—originating bank, intermediary bank, and receiving bank—uses specific identifiers (such as SWIFT or BIC codes) to locate accounts and facilitate communication.

The typical process works as follows:

• The sender initiates the transfer from their bank, specifying the amount, currency, and beneficiary details.
• The originating bank sends the payment instructions through the SWIFT network or another international messaging system.
• Intermediary banks process the transaction, convert currencies when necessary, and deduct corresponding service fees.
• The receiving bank credits the funds to the destination account once the transaction is confirmed and regulatory checks are completed.

Traditionally, these transfers could take between one and five business days, depending on the countries involved and the number of intermediaries. However, SWIFT-based correspondent banking is no longer the only operational model for cross-border payments. Today, international transfers can be executed through specialized fintech providers, local payment rails, or blockchain-based settlement mechanisms such as stablecoins. Each model introduces different trade-offs in speed, cost transparency, scalability, reversibility, and compliance.

These models reduce intermediaries and settlement friction in specific corridors, but introduce new trade-offs around reversibility, regulatory coverage, and operational complexity—making infrastructure choice a strategic, not purely technical, decision.

As a result, both individuals and businesses can choose the payment infrastructure that best fits their operational needs—balancing speed, cost, risk, and regulatory requirements depending on the corridor and use case.

Making an international wire transfer requires meeting certain requirements and providing specific information to guarantee that funds reach the recipient correctly. These requirements vary by country of origin, financial institution, and applicable regulations, but generally follow global standards.

1. Beneficiary information.

You must have the recipient’s full name exactly as it appears on their bank account, along with their account number or IBAN (International Bank Account Number). This code, widely used in Europe and other markets, uniquely identifies receiving accounts and reduces errors.

2. SWIFT or BIC code of the receiving bank.

This alphanumeric code identifies the financial institution receiving the funds. Without it, the transfer may be delayed or rejected. The SWIFT/BIC code enables secure communication between banks worldwide.

3. Amount and currency of the transfer.

The sender must indicate the amount to be sent and the currency in which the transaction will be processed. Banks may perform the currency conversion automatically, applying the exchange rate in effect at the time of the operation.

4. Purpose or description of the transfer.

Some institutions require stating the purpose of the transfer, particularly for AML/CFT compliance. This is common in high-value payments or transfers to certain jurisdictions.

5. Official identification of the sender.

To comply with KYC requirements, banks and fintech providers typically request valid government identification, proof of address, or tax information before authorizing the transfer.

6. Payment of fees and associated costs.

Most international transfers include service fees, currency-conversion costs, or intermediary charges. These costs may be borne by the sender, the recipient, or shared, depending on the selected option (OUR, BEN, or SHA).

Providing complete and accurate information helps accelerate processing and reduces the risk of delays, rejections, or holds by intermediary banks. It is worth mentioning that many fintech platforms simplify all this through automated digital forms that validate the data before submitting the transfer.

An international wire transfer can be broken into a set of clear steps that any individual or business can follow through online banking, a fintech app, or a bank branch. Beyond the technical details, the process focuses on preparing information, configuring the transaction, and monitoring delivery.

1. Choose the appropriate channel

Decide whether the transfer will be made through a traditional bank, a specialized fintech, or an international payment provider. Not all accounts or apps support international money transfers, so verifying this is essential. This choice directly affects fees, exchange rates, and delivery times.

2. Set up the transaction on the platform

Log into the online banking portal or app and select “international payment” or “Transfer abroad.” Specify the account from which the funds will be sent, the destination country, the currency, and the amount.

3. Enter and validate the beneficiary’s details

Input the recipient’s information and verify that there are no errors in the name, account number, or bank identifiers. A single incorrect character can trigger delays or rejections.

4. Review fees, exchange rate, and estimated timing

Before confirming, review the total cost of the transfer, the exchange rate applied, and the estimated settlement time. Many fintechs display this information clearly and in real time, enabling easy comparison.

5. Confirm the transfer and save the receipt

Authorize the transaction—often through a token, SMS code, or biometric authentication—and download or save the receipt with the reference number. This number is essential for tracking or troubleshooting.

6. Monitor the status of the transfer

Use the tracking features provided by the bank or platform to confirm when funds are credited to the destination account. In some cases, the sender can view the transaction’s position in the international processing chain (sent, in progress, credited).

Costs and settlement times are critical considerations when making an international wire transfer, as they affect how much money reaches the recipient and when they receive it. These factors vary by institution type (traditional bank or fintech), payment corridor, currency, and degree of intermediation.

International transfer costs

A traditional international wire transfer generally involves several types of fees:

1. Sending fee: charged by the bank or provider initiating the transfer; banks may charge anywhere from small amounts to roughly 50 dollars or more per transaction.
2. Receiving fee: the beneficiary’s bank may charge a fee for crediting incoming foreign funds.
3. Intermediary bank fees: correspondent banks may deduct additional charges as the transfer moves through the network.
4. Exchange-rate markup: many banks add a margin to the mid-market rate, increasing the cost of currency conversion.

Fintech platforms often differentiate themselves by offering lower fees, exchange rates closer to the mid-market rate, and more transparent pricing—especially for small and mid-sized transfers. This makes them attractive for personal remittances and recurring business payments.

Settlement times for an international wire transfer

In the traditional banking system, an international transfer typically takes between 2 and 5 business days to be credited, depending on the destination, currency, involved banks, and compliance checks. Even when SWIFT messages move quickly, final settlement may be delayed due to time-zone differences, bank holidays, or extended risk reviews.

Times are usually shorter when sending money through high-volume corridors (for example, the U.S.–Mexico corridor), and longer in markets with strict foreign-exchange controls or weaker financial infrastructure. By contrast, many modern fintech and payment providers use local rails and more efficient technologies to offer same-day or near-instant transfers in certain corridors.

Security in international bank transfers combines technological infrastructure, financial regulation, and fraud-prevention mechanisms. Although transactions are generally safe when processed by established banks or regulated fintechs, they do involve risks that require attention from both users and providers.

Regulatory Controls: KYC, AML, and Sanctions

Institutions handling international payments must comply with KYC and AML frameworks to verify user identity, monitor transactions, and report suspicious activity. These controls include document validation, analysis of source of funds, and checks against sanctions and watch lists at both local and international levels.

Technological Protection Measures

Banks and fintechs use data encryption, multifactor authentication, and real-time monitoring to protect transfers and prevent unauthorized access. Many modern solutions also use tokenization and secure APIs to minimize exposure of sensitive data during routing.

Fraud Risks and Best Practices for Users

Despite strong infrastructure, international money movements attract fraud attempts because they are often irreversible once processed. To reduce risks, users should verify the recipient’s identity, distrust unclear or urgent requests, review all entered data carefully, and use only recognized and regulated providers.

Prometeo simplifies international transfers by enabling companies to operate through local banking infrastructure instead of relying on traditional correspondent-bank networks. Through its Borderless Banking solution, businesses can manage cross-border payments using local accounts, API-driven automation, and built-in compliance—reducing operational friction, improving traceability, and gaining real-time visibility over international money movements.

Example: B2B supplier payment using local accounts and cross-border infrastructure

Consider a U.S.-based company paying a supplier in Mexico.

1. Local account setup and beneficiary verification
   
   The company operates a local MXN bank account under its own name. Before initiating payments, the supplier’s bank account is validated to confirm ownership and reduce errors or fraud risks—avoiding common issues associated with incorrect beneficiary data.
   
2. Payment initiation and FX handling
   Funds are sent locally in MXN, eliminating the need to initiate an international wire transfer. Currency conversion is handled upfront with transparent pricing, reducing hidden FX spreads and intermediary fees.
   
3. End-to-end tracking and traceability
   Once the payment is initiated, the company can track its status in real time—from initiation to settlement—maintaining full visibility throughout the process and removing the opacity typical of correspondent-bank routing.
   
4. Automated reconciliation and reporting
   Payment confirmations, references, and transaction data are automatically reconciled against invoices and internal records. This simplifies treasury operations, audit readiness, and financial reporting for teams handling recurring or high-volume cross-border payments.

By operating directly on local banking rails and centralizing control through APIs and dashboards, Prometeo enables companies to move money across borders with greater speed, transparency, and operational control—without the complexity of traditional international wire transfers.

International transfers have become critical infrastructure for the global economy, enabling family remittances, foreign trade, business expansion, and capital flows across regions such as Latin America, the United States, and Europe. Understanding how these cross-border payments work, their costs, requirements, settlement times, and security risks helps individuals and companies make better financial decisions, optimize operations, and reduce friction.

Financial digitalization and fintech innovation are transforming this landscape, offering faster, more transparent, and more competitive alternatives than the traditional model based solely on correspondent banks and SWIFT messaging. Infrastructure solutions like Prometeo’s Borderless Banking, show how direct connection to local banking, API-driven automation, and integrated compliance can radically simplify B2B international-payment operations.

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

Global messaging network used by banks to exchange standardized payment instructions for international transfers.

BIC / SWIFT Code

A unique identifier that specifies the receiving financial institution in an international payment.

IBAN (International Bank Account Number)

Standardized account number format used mainly in Europe to identify bank accounts and reduce routing errors.

Correspondent bank

An intermediary bank that processes international payments on behalf of the originating and receiving banks when they do not have a direct relationship.

FX spread

The margin added to the mid-market exchange rate by banks or providers when converting currencies, often representing a hidden cost.

OUR / SHA / BEN

Fee allocation options in international transfers:

• OUR: sender pays all fees
• SHA: fees are shared
• BEN: beneficiary pays all fees

KYC (Know Your Customer)

Regulatory process used to verify the identity of clients and assess risk before allowing financial transactions.

AML (Anti-Money Laundering)

Framework of laws, controls, and monitoring processes designed to detect and prevent illicit financial activity.

Sanctions

Restrictions imposed by governments or international bodies that limit or prohibit transactions with certain countries, entities, or individuals.

Traceability

The ability to track a payment end-to-end across systems, intermediaries, and settlement stages.

Can I cancel an international wire transfer once it has been sent?

In many cases, it is possible to attempt a cancellation, but success depends on the time elapsed and the transaction’s status. If the funds have not yet been credited to the recipient, the originating bank may request cancellation through the international network. This may incur additional fees and is not always guaranteed.

Are there minimum or maximum amounts for sending money abroad?

Yes. Most banks and providers establish minimum and maximum limits per transaction and per day, which vary based on account type, customer profile, and jurisdiction. Certain thresholds may also trigger enhanced compliance reviews (such as requests for documentation on source and purpose of funds).

What happens if I enter incorrect beneficiary information?

Errors in the name, account number, IBAN, or SWIFT/BIC code can lead to rejections, returns, or significant delays. In such cases, funds typically return to the originating bank, but management or intermediary fees may apply.

How can I know if a platform for sending international money is reliable?

Verify that the provider is regulated in its operating jurisdiction, holds proper licensing for payment or money-transmission services, and applies strong KYC/AML controls. Reviewing its track record, user reviews, security policies, and transparency around fees and exchange rates is also recommended.

What taxes may apply to an international wire transfer?

Depending on the country, taxes may apply to remittances, currency purchases, or specific financial transactions. Transfers may also be subject to tax reporting or capital-outflow limits. Consulting a tax advisor is advisable when handling large or recurring flows.

How can companies make international payments to suppliers?

Companies can make international payments to suppliers through traditional bank wire transfers, specialized cross-border fintech platforms, or local payment infrastructure depending on the corridor. Beyond executing the payment, businesses must consider contract currency, settlement timing, reconciliation, and supplier onboarding requirements. For recurring payments, using a infrastructure like Borderless Banking —that supports batch processing, enables local accounts, and API-based automation— significantly reduces operational overhead and errors.

What information is required for cross-border payments in business transactions?

In addition to standard beneficiary information (legal name, account number or IBAN, and SWIFT/BIC code), businesses typically need to collect supplier documentation such as tax identification, proof of business registration, and contractual purpose of payment. For certain corridors, enhanced compliance may require invoices, source-of-funds explanations, or beneficiary ownership details. Centralizing this data and validating it upfront reduces delays, rejections, and compliance escalations.

How can businesses reduce fees on international wire transfers?

Reducing international transfer costs goes beyond negotiating bank fees. Companies can optimize costs by minimizing intermediary banks, using local currency settlement where possible, avoiding unfavorable FX markups, and consolidating payment volumes. Leveraging infrastructure that provides transparent pricing, direct access to local rails, and automated reconciliation often delivers meaningful savings at scale.