International Wire Transfer: All You Need to Know
International wire transfer is one of the most popular methods of cross-border payments. Rapid growth in India’s exports and globalization of the economy are two main driving factors for its popularity. In addition, it’s faster and safer compared to risky options like cash, checks, and demand drafts.
So if you’re curious about how international wire transfer works, the documentation process, duration, and fees, this blog is the right guide for you.
What is International Wire Transfer?
An international wire transfer is just a way to send money across borders electronically—no physical cash involved. All you need is to share your bank account details with the sender, and the money moves directly from their account to yours.
Most of these transfers happen through the SWIFT network (Society for Worldwide Interbank Financial Telecommunications). Think of SWIFT as a global messaging system for banks, helping them send money securely using unique SWIFT codes.
If you’re in India, you’ll need your bank account details and a SWIFT code to receive international payments, whether it’s for personal reasons or business..
How do International Wire Transfers Work?
Wire transfers operate by sending a secure message from the sender’s bank to the recipient’s bank, instructing them to deposit the specified funds into the recipient’s account. The sender pays for the transaction upfront, and the funds are transferred electronically.
Upon receiving the message, the recipient’s bank deposits the funds into the recipient’s account. The two banks then settle the payment on the back end, ensuring a secure and efficient transfer process. This method ensures that the funds are transferred quickly and safely, making wire transfers a reliable option for sending money.
What Documents and Information Do You Need for an International Wire Transfer?
If You’re Receiving an International Wire Transfer: Provide the following details to the sender:
- Your Name and Address: Ensure they match your bank records.
- Bank Details: Bank name and address, account number and account type (savings or current), and SWIFT Code: This unique identifier ensures the transfer reaches your bank in India.
If You’re Sending an International Wire Transfer: In addition to the receiver’s details, you’ll need to provide accurate details about the recipient's bank:
- Your Information: Full name, address, and your bank account number.
- Transfer Details: Amount, currency type, and the reason for the transfer (e.g., education fees, medical expenses, or family support).
Additional Documentation Requirements: Depending on the transfer amount or purpose, your bank may ask for additional documents:
- Identification Proof: A government-issued ID with your name and address, like a PAN card or Aadhaar.
- Purpose-Specific Documents: For educational transfers, you might need to submit the university’s offer letter and fee structure. For medical transfers, you may need hospital bills or related paperwork.
How to Make an International Wire Transfer?
After having discussed the required documents, let’s see the different ways through which you can make an international wire transfer. One popular method is using an international money transfer service, which partners with digital wallets to facilitate secure and efficient cross-border transactions.
Transferring money using online banking services
This is the best option if your bank has online international wire transfer facilities or if you use a money transfer service. It saves your time from visiting the branch and you can do it from anywhere using an internet connection
- Find out the wire transfer payment option on the online banking webpage
- Enter the recipient’s bank account details like account number, type, and SWIFT code
- Fill in the amount and currency type
- Pay the charges for the wire transfer which will be between INR 500 - INR 1000 or more for most leading Indian banks
- After you have filled out all the details, your bank will share the recipient information, their bank account particulars, and the transfer amount with the recipient’s bank
- Once the details are confirmed, your bank will send a secure payment message via SWIFT to the recipient’s bank
- The recipient’s bank will credit the money to their account and settle the transaction with your bank.
These are current fees for some of the popular Indian Banks:
| Bank | International Transfer Fee — Outgoing in INR |
| ICICI | Upto 1500 |
| HDFC | Upto 1000 |
| PNB | 500 |
| Yes Bank | Upto 750 |
Keep in mind that while your bank may charge a single fee, additional costs can arise from one to three intermediary banks and the recipient’s bank. Additionally, the recipient may receive a reduced amount due to forex markups commonly applied by banks.
International wire transfer using a banking app or phone services
A banking app works like an online banking service. After downloading the app, you can log in and follow the same steps above.
Few banks also offer phone banking services for wire transfers. In this method, you must call the call centre and share personal and banking details with the phone banking staff. They will guide you with the remaining steps.
International wire transfer by in-person visit to your bank
If your bank doesn’t offer online services for international transfers or you’re more comfortable with in-person visits, you can visit your nearest bank branch and follow the below steps:
- Share the recipient information like name and address
- Give their bank account details like bank name, address, and BIC or SWIFT code
- Share your bank account details from where the amount will be deducted
- Mention the transfer amount and the currency
- Pay the fee for the wire transfer to the bank’s official
International wire transfer using a third-party service provider
International money transfer service providers are not the only option to make international wire transfers. Several stand-alone platforms like PayPal and Wise also allow you to make and receive international wire transfers and more often than not they can do it faster than banks. However, it is important to be aware of the charges that these platforms levy on international wire transfers including the exchange rate that they are offering.
Through Skydo, you can receive international wire transfers via SWIFT from over 150 countries that too at live forex rate.
Is International Wire Transfer Safe?
Yes, international wire transfers are generally safe as they use secure networks like SWIFT, which rely on encryption and monitoring to protect transactions. However, there are some risks to be aware of. Once a wire transfer is completed, it cannot be reversed, so it’s essential to double-check the recipient’s bank details, including the SWIFT code, before you send money overseas. Additionally, while the transfer process is secure, phishing risks can arise if the recipient’s details are compromised. Verifying all information beforehand can help ensure a smooth and secure transaction.
What Are the Compliance Regulations Around International Wire Transfers?
The Reserve Bank of India (RBI) monitors wire transfers in India, ensuring compliance for sending money abroad. RBI implements compliance requirements based on the Foreign Exchange Management Act (FEMA), 1999.
Some of the compliance regulations are as follows:
- Only Authorized Category Dealer I (AD Cat I) banks are allowed to deal in wire transfers
- If you receive a wire transfer from a client abroad, you need to collect the Foreign Inward Remittance Certificate (FIRC) from your bank as proof of payment
It’s mandatory to mention the purpose code whether you’re sending or receiving an international wire transfer
What Are the Fees Charged by Indian Banks for International Wire Transfers?
Banks charge various fees for international money transfers. Here’s an overview of the different categories of fees and how much you will end up paying if you choose to wire transfer via popular banks in India:
SWIFT Fee
These charges are associated with using the SWIFT network to wire funds. SWIFT fee can be charged as a flat fee or a certain percentage of the transaction value. Either way, the fee ranges between INR 500-1000.
Forex markup
Most banks don’t offer live forex rates and instead apply a markup. For example, say you’re receiving an international wire transfer of USD 2,000 from your U.S.-based client, with the current exchange rate at 1 USD = INR 84. Instead of INR 84, however, your bank might apply a lower exchange rate, such as INR 82, reducing your effective income from INR 168,000 to INR 164,000—meaning you lose out on INR 4,000.
Intermediary bank fee
The calculation of this fee depends on the intermediary banks that facilitate the transaction. Therefore it cannot be calculated upfront.
FIRA charge
This is applicable when you receive a payment from overseas via an international wire transfer from an international client. You need to procure FIRA for every international payment, however, most banks charge a fee for providing the same, For example, Axis Bank charges ₹250 for issuing a FIRA
Service tax
Service tax is not fixed and differs from one bank to another
Cancellation charges
This does not apply to every bank, but a few might do it. For example, HSBC charges INR 100 plus tax if you cancel a wire transfer
How much do popular banks charge for wire transfers?
| International wire transfer fee (Outward remittance) | Upto INR 1000 |
| GST | 18% of the amount paid as fees. |
| International wire transfer fee (Outward remittance) | Upto INR 1500 |
| GST | GST is further levied on the fees paid |
| International wire transfer fee (Outward remittance) | 0.3% of value (min INR100, max INR1,500) + cable charge of INR200 for same currency wire transfer + applicable taxes |
| International wire transfer fee (Inward remittance) | INR300 + applicable taxes |
Note that these charges do not include intermediary bank charges.
Note that these charges do not inclAt first glance, most banks seem to offer free inward remittance services, but the reality is different. Banks often charge a forex markup fee, meaning the exchange rate they offer is lower than the actual market rate.
For example, if your international client sends you USD 5000, and the prevailing exchange rate is INR 84 per USD, you would expect to receive INR 420,000. However, due to the bank's forex markup, you might get a lower rate, say INR 82 per USD, leaving you with only INR 410,000—a loss of INR 10,000.
Additionally, for international payments, clients often pass on the SWIFT fees to the receiver, further reducing the amount you receive. These hidden costs can significantly impact your earnings, especially for freelancers and businesses receiving payments from abroad. Banks also charge additional fee for ancillary services like issuing FIRC and FIRA
If you're curious about how much you must pay while receiving a wire transfer, check our FX calculator to easily get accurate information.
How Long Does It Take to Receive an International Wire Transfer?
The time it takes to receive an international wire transfer typically ranges from 1 to 5 business days depending on bank processing time, intermediary banks, currency conversion and more.
How to Reverse an International Wire Transfer?
Reversing a wire transfer can be challenging, but it is possible in certain situations. If the sender realizes an error has been made, they should contact their bank immediately to request a reversal. However, if the funds have already been deposited into the recipient’s account, reversing the transfer becomes more difficult. In such cases, the sender may need to contact the recipient directly and request the return of the funds. Acting quickly is crucial, as the chances of recovering the funds are higher if the issue is addressed promptly. Always double-check the recipient’s bank details before initiating a wire transfer to minimize the risk of errors.
Alternatives to International Wire Transfer
While international wire transfers are a popular way to send and receive money across borders, they’re not always the best option. Thankfully, there are other platforms with unique advantages and drawbacks.
PayPal: PayPal is a well-known platform that lets you send and receive international payments for both personal and business purposes. However, it comes with some limitations:
- It’s not available in all countries.
- Even in supported countries, not all services are accessible.
- Cross-border transfers via PayPal can be expensive, so it’s important to carefully check their fees and charges before using the platform.
Payoneer, Wise, and Skydo: For businesses, platforms like Payoneer, Wise, and Skydo offer a smarter alternative. These platforms provide international virtual bank accounts, making cross-border payments faster, easier, and more affordable compared to traditional wire transfers. They eliminate many of the hassles, like high fees and delays, often associated with wire transfers, while also simplifying the process for business owners.
Receive fast and secure International Payments with Skydo
When receiving international payments, getting paid quickly and minimizing fees are top priorities. While banks are often the default choice, they fall short in both speed and cost-efficiency.
Virtual accounts offer a smart alternative, connecting directly to your real bank account while bypassing costly SWIFT fees and delivering funds faster. Skydo makes this easy, providing international virtual accounts where your U.S. clients can pay you locally. With Skydo, you’ll benefit from flat fees, live forex rates without markups, and free FIRAs with every transaction.
Switch to Skydo to experience faster, more affordable payments that put more money in your pocket.
How Long Does International Wire Transfer Take?
eceiving an international wire transfer in India usually takes 1 to 5 business days. However, the exact time can vary based on several factors including currency conversion, public holidays etc
Is International Wire Transfer Safe?
Is wire transfer the same as NEFT?
Is IBAN the same as wire transfer?
Is wire transfer the same as SWIFT?
Which Banks in India Support International Wire Transfer
