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?
International wire transfer is a term for transferring money across the border electronically – so there is no physical cash involved in the transaction. You only share the bank account details with your client to send money from their bank account.
Today most international wire transfers happen through SWIFT – Society for Worldwide Interbank Financial Telecommunications. SWIFT is a communication network designed for banks to transfer money using a standardised code system. The code contains 8 to 11 alphanumeric characters consisting of the bank code followed by its country, location, and branch code.
Documents Required for International Wire Transfer?
Here’s a list of information required for international wire transfer:
If you’re receiving an international wire transfer:
- Share your name and address with the sender
- Give them complete bank details like bank name, address, account number, account type, and SWIFT code
If you’re sending an international wire transfer:
In addition to the receiver’s information you need to furnish the following details
- Your complete information including full name, address, and bank account number
- Transfer details: Amount, currency type, and reason for transfer
Depending on the volume of the transaction, you may also be asked to share a few documents:
- Identification proof: Any government-issued ID card with your name and address will be accepted
- Additional documents: The bank might ask for more documents, especially in case of a large transfer. For example, if you’re transferring educational fees, the bank might demand University offer letter and fee structure document.
How Long Does Wire Transfer Take?
International wire transfer can take 1 to 5 business days to complete. For example, HDFC Bank takes 5 business days to process international wire transfers. However, it could be more if a higher number of intermediary banks are involved.
How to Make an International Wire Transfer?
There are three ways you can wire transfer money through your bank. We have explained all the ways here and covered an alternative method of transferring money using a third-party service provider.
Transferring money using online banking services
This is the best option if your bank has online international wire transfer facilities. 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 or Fedwire, for example, to the recipient’s bank
- The recipient’s bank will credit the money to their account and settle the transaction with your bank.
Since an international wire transfer happens via SWIFT, here’s how you can make overseas transfers using SWIFT:
- Log in to your online bank account and share the recipient details along with the SWIFT code, transfer amount and currency.
- Your bank will charge you a SWIFT fee. You can find the SWIFT fees of some of the popular Indian Banks right here.
- Once you pay the fee, your bank will verify the details and check your account for sufficient balance.
- After verification, the money will be sent to the recipient’s bank account via SWIFT. The recipient’s bank verifies the transfer and credits the recipient’s account if everything is proper
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 wire 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
Banks 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?
International wire transfers are usually safe because they are conducted over secure networks like SWIFT. The transactions are encrypted and monitored to safeguard against unauthorized access.
Having said that, there are certain inherent risks like sending money to the wrong account. Once a wire transfer has been executed, it’s impossible to reverse it. This can be avoided by confirming the bank account details with the recipient before sending them.
Information exposure or phishing attacks might occur at the recipient’s end if their bank account details fall into the hands of fraudsters.
What Are the Compliance Regulations Around International Wire Transfers?
The Reserve Bank of India (RBI) monitors wire transfers in India. 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 a wire transfer payment.
International Wire Transfer Fee: What You Need to Know
Banks charge various fees for international wire transfer. 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?
| SWIFT Fee | INR 500 for amount upto USD 500 |
| Service Tax | Varies between 0.1 to 1% depending on the transaction amount |
| FIRC fee | INR 200 |
| GST | 18% of the amount paid as fees. GST is also levied on the amount of currency exchanged at 0.18% if the amount is up to INR 1 lakh. |
| Transfer fee | INR 750 if done through internet bankingINR 1000 if done through other channels |
| GST | For up to INR 1 lakh, 1% of the gross amount exchanged |
| Inward wire transfer charges | INR 300 + applicable taxes |
| Outward foreign currency wire transfer | 0.3% of the value + INR 200 cable charges |
| Cancellation charge | INR 100 |
| GST | For up to INR 1 lakh, 1% of the gross amount exchanged |
In addition to the above charges,
If you’re curious about how much you must pay while receiving a wire transfer, check our FX calculator to easily get accurate information.
Which Banks in India Support International Wire Transfer
Following is the list of popular AD Cat I banks in India that support international wire transfers:
- State Bank of India
- HDFC Bank
- Punjab National Bank
- ICICI Bank
- Bank of Baroda
If you want to check the entire list of AD Cat I banks, here’s the link to the RBI website.
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?
International wire transfers usually take 5 business days to complete. However, it depends on the number of intermediary banks involved
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?
