How Does International Wire Transfer Work: A Complete 2025 Guide

At moneyHOP, we believe sending money abroad should be simple, transparent, and reliable. That’s why we’ve put together this guide to help you understand how does international wire transfer work so you can make smarter decisions for your global payments.

Whether you’re a student paying tuition, a family supporting loved ones, or a business managing global transactions, knowing the ins and outs of how does international wire transfer work can help you save time and money.

What Is an International Wire Transfer?

An international wire transfer is an electronic method of sending money from one country to another through banks or licensed financial institutions. The process is facilitated via the SWIFT network, a globally recognized messaging system that ensures secure and accurate transactions.

To send money internationally through a wire transfer, you must provide the recipient’s full name, bank details, SWIFT code, and other identifying information. Once submitted, the transfer follows a step-by-step global framework to ensure delivery.

This definition aligns with international banking standards, including guidelines issued under the Liberalized Remittance Scheme (LRS) by the Reserve Bank of India (RBI).

How Does International Wire Transfer Work?

Let’s walk through exactly how does international wire transfer work:

1. Initiation of Transfer

The sender provides their bank or financial service provider with the recipient’s details: name, account number, bank address, SWIFT code, and transfer amount. In India, the RBI may require stating the purpose of the transfer as part of LRS compliance.

2. Secure SWIFT Messaging

SWIFT (Society for Worldwide Interbank Financial Telecommunication) enables banks to securely exchange payment instructions. The sender’s bank sends encrypted instructions to the recipient’s bank using this global standard.

3. Use of Intermediary Banks

If a direct relationship does not exist between the sending and receiving banks, one or more intermediary or correspondent banks help route the funds.

4. Currency Conversion

When the transfer involves different currencies, the sender’s bank converts the funds using the prevailing rate. Banks may apply a markup, something we at moneyHOP aim to minimize for our users.

Check our live exchange rates here

5. Settlement and Delivery

After compliance checks, the sender’s bank debits the account and initiates fund transfer. The recipient’s bank receives the instructions and credits the account. This usually takes 1 to 5 business days, depending on the complexity of the route and local banking hours.

This process reflects standard international banking protocols recommended by SWIFT and regulated by central banks globally, including RBI in India.

What Information Is Needed for International Wire Transfer?

To ensure a successful transfer, you must provide:

• Recipient’s full legal name

• Account number or IBAN

• Recipient bank’s name and full address

• SWIFT/BIC code

• Transfer amount and currency

• Purpose of transfer (required by Indian banks under LRS)

• Sender’s bank account details

Cross-verifying this data before initiating the transfer helps avoid costly delays or failed transactions. It’s another important part of understanding how does international wire transfer work from start to finish.

Still unsure if you’re ready to hit send?

Here’s a quick checklist most people forget. Make sure you’re not one of them:

How Long Does an International Wire Transfer Take?

Typically, international wire transfers take 1 to 5 business days. Influencing factors include:

• Recipient bank processing times

• Use of intermediary banks

• Currency conversion time

• Holidays or weekends in sending/receiving countries

• Compliance verification by the banks

Timing plays a key role in how does international wire transfer work efficiently across countries and banking systems.

Know more: NOSTRO Account Explained: 7 Powerful Insights for Smarter Global Payments

Fees Associated with International Wire Transfers

Multiple fees may apply, such as:

• Outward remittance fee by your bank

• Receiving fee by the recipient’s bank

• Intermediary bank handling fees

• Currency conversion charges (often embedded in the markup)

With traditional banks, these fees can add up quickly. At moneyHOP, we minimize forex markups and eliminate hidden costs to give you better value.

Read more: How to Avoid Wire Transfer Fees: The Complete Guide for Smarter Global Payments

Can You Wire Money Internationally Without a SWIFT Code?

No. The SWIFT code is critical to routing the funds correctly to the recipient’s bank. Without it, your transfer cannot proceed. This is one of the first requirements when considering how does international wire transfer work technically.

Can an International Wire Transfer Be Reversed?

International wire transfers are typically non-reversible once processed. If a mistake is detected early, the sender must immediately contact their bank. Reversals, if permitted, require cooperation from all involved banks and are not guaranteed.

What Is the Limit for International Wire Transfer from India?

Under the Liberalized Remittance Scheme (LRS) by the Reserve Bank of India, Indian residents are allowed to remit up to USD 250,000 per financial year for permitted purposes like education, travel, maintenance of relatives, medical treatment, etc.

Also read: How To Pay University Fees In The USA From India

Alternatives to International Wire Transfer

While reliable, wire transfers may not always be the fastest or most economical. Alternatives include:

• Online Money Transfer Platforms: moneyHOP’s HOP Remit enables same-day transfers with better rates and zero hidden fees.

• Foreign Currency Demand Drafts: Rarely used today, these are slower and less secure.

• Multi-currency Accounts: Useful for businesses or frequent users who need to transact in multiple currencies.

Smarter Global Transfers with HOP Remit by moneyHOP

Tired of slow, expensive wire transfers?

HOP Remit by moneyHOP is our digital-first solution designed to make global payments easier for Indian residents. Whether it’s tuition fees, living expenses, or family support, HOP Remit ensures speed, transparency, and savings.

• Real-time tracking

• Near-zero forex markup

• Fast transfers

• RBI-compliant platform

• Lowest exchange rates

Start your transfer stress-free today.

Also read: How to Avoid TCS on Foreign Remittances in (Legally + Smartly)

Conclusion

Understanding how does international wire transfer work empowers you to make secure, informed, and cost-effective global payments. While banks offer a stable channel, they often come with high fees and hidden markups. At moneyHOP, we believe your international transfers should be efficient, transparent, and affordable.

Choose your method wisely. For those who value speed and savings, HOP Remit by moneyHOP is built to serve you better every time.