How to Send Money to an IBAN for International Transfers

An International Bank Account Number (IBAN) serves as a standardized global system for identifying bank accounts across borders. Its primary purpose is to streamline and secure international money transfers, minimizing errors that can occur with various national account numbering schemes. This article will guide you through the process of sending money to an IBAN, covering essential details, available methods, execution steps, and how to track your funds. Understanding these aspects will help ensure your international transfers are both efficient and successful.

Understanding Required Transfer Details

Initiating an international money transfer to an IBAN requires more than just the account number itself. Gathering all necessary information from your recipient beforehand helps prevent delays or failed transactions. The full recipient name, exactly as it appears on their bank account, is a primary detail needed for verification. Additionally, the recipient’s complete address is required for compliance and identification purposes.

You will also need the full name and address of the recipient’s bank. This information helps in routing the funds correctly through the international banking network. The SWIFT/BIC (Society for Worldwide Interbank Financial Telecommunication / Bank Identifier Code) code, an 8-to-11-character alphanumeric code, uniquely identifies banks and financial institutions worldwide and works with the IBAN to direct funds.

The IBAN uniquely identifies the recipient’s bank account. Some banks or money transfer services may also ask for the purpose of the transfer, such as “family support” or “payment for services,” to comply with regulatory requirements.

Choosing Your Transfer Method

When sending money to an IBAN, you have two main avenues: traditional bank transfers or specialized online money transfer services. Traditional bank transfers, often referred to as wire transfers, involve initiating the transaction directly through your own bank. This can be done via online banking portals, mobile apps, or by visiting a physical branch location. Outgoing international wire transfer fees from banks can range from approximately $5 to $75, with an average around $45, and may also include exchange rate markups.

Online money transfer services, such as Wise or Remitly, specialize in international remittances and provide competitive alternatives. These platforms can offer lower fees or more favorable exchange rates compared to traditional banks. For example, some services may charge less than 1% of the transfer amount if funded via a bank account, though credit card payments might incur additional fees.

When selecting a method, consider factors such as the associated fees, which can vary significantly between providers and payment methods. Exchange rates are also important, as some services offer the mid-market rate while others apply a markup. Transfer speed is another consideration; while bank wires take 1 to 5 business days, some online services can complete transfers within minutes or hours, especially for certain corridors or payment types. Be aware of any daily or per-transaction limits imposed by the service or your bank, which might affect large transfers.

Executing the Transfer

Once you have gathered all the necessary recipient details and chosen your preferred transfer method, the next step involves initiating the transaction. This process begins by logging into your chosen platform, whether it is your bank’s online banking portal or the website or mobile application of an online money transfer service. Most platforms feature an option to “send money abroad” or “initiate international transfer.”

Upon selecting the international transfer option, you will be prompted to enter the recipient’s details. This includes the IBAN, the SWIFT/BIC code of their bank, the full recipient name, and their bank’s name and address. Carefully input each piece of information, ensuring there are no typos or discrepancies, as even a minor error can cause delays or misdirected funds.

Next, you will specify the amount you wish to send and select the correct currency for the recipient. The platform will display the total cost of the transfer, including any fees and the applied exchange rate, along with an estimated arrival time for the funds. Before finalizing the transaction, review all the entered details one last time. Confirming everything is accurate helps prevent errors.

Finally, you will proceed to authorize the transfer, which involves a security step like two-factor authentication. Once authorized, the funds will be debited from your account, and the transfer process will commence. The platform will usually provide a confirmation number or transaction ID, which is retain for your records and for tracking the transfer’s progress.

Tracking Your Funds

After initiating your international money transfer, you will receive a confirmation, often via email or within the platform itself. This confirmation usually includes a unique transaction ID or reference number. This identifier is for monitoring the progress of your funds.

Most banks and online money transfer services offer a tracking feature, allowing you to check the status of your transfer using the provided reference number. You can access this through your online account, where updates will be available. Statuses include “processing,” “sent,” or “delivered.”

It is beneficial to inform your recipient that the transfer has been sent and provide them with the transaction ID. This allows them to monitor the incoming funds and notify you once the money is credited. While many international transfers are completed within 1 to 5 business days, factors such as banking hours, time zones, and intermediary banks can influence the exact arrival time. You will know the funds have been delivered when the status updates to “completed” or “delivered” and your recipient confirms receipt.