Bank transfers are similar to fund transfers that are made between the accounts of several banking institutions. Today, bank transfers are electronic in nature and allow faster and more secure exchange of money that is sent from one account to another.
There are many variations of bank transfer, which are not only exercised by banks but also by other financial companies specializing in “cash to cash”. The most well-known transfer methods are SWIFT – international money transfers by banks, Western Union transfers, and FX Global Transfers which are practiced in the United States.
It is now possible to make a transfer manually or instantly from your bank account using your bank’s online service. Only your account number and its IBAN code are required in order to be able to transfer funds to the account of a third party or a merchant site. This process is made possible thanks to certain protection protocols such as SWIFT or Fedwire.
The SWIFT transfer method was initiated in 1974 by a grouping of seven global banks that have developed a computer network allowing the exchange of funds between the holders of several bank accounts. So-called SWIFT transfers include an ISO 9362 code made up of eight characters and three digits which makes it easier to identify the account holder. This ultra-secure method allows the user to read a summary that indicates the processing of his bank transfer request. Be careful, however, because bank transfers are not made immediately. Indeed, it takes several hours before the money transfer is effective.