SWIFT vs SEPA: How International Bank Transfers Work
On XMLGold, you have been able to buy e-currency and cryptocurrency with the SEPA transfer already for a long time. But let’s get to know better what SEPA payment is and how it works, how it differs from other Bank Transfers. In the next chapters we will compare SEPA vs SWIFT.
What is SEPA (Single Euro Payments Area) transfer and how does it work?
Have you ever wondered if there was the easiest way of transferring money? You can now get rid of the hectic process of IFSC additions, account number, waiting for the activation of the beneficiary, the transactions getting delayed and related issues.
Here is now SEPA (Single Euro Payments Area) available which acts as the fast at the same time low cost payment system and is created by the EU which harmonizes the way the cashless payments get transacted between the euro countries. The Bank money transfer has never been so convenient and easy.
Transferring of payments with SEPA is safer and faster than the standard bank transfers. The SEPA allows making the cross border payments easily in EUROS The European government agents, businesses and consumers that make payments through instant credit transfers, direct debit or with credit transfers, make use of SEPA architecture.
The SEPA payment is regulated and approved by the European Commission.
The SEPA transfer is the credit transfer in compliance with the standard credit transfer of European which can be used to make different Euro payments within SEPA. It includes the bank accounts of payer & payee in the format of international IBAN. This IBAN is an international bank account number.
In different ways, the SEPA payment is much similar to domestic transfer. The banks which support the SEPA transfers, have a direct relationship established or have a great network of intermediary banks, which allows the transfers for running across the country borders.
The list of SEPA countries
This list of SEPA countries involves 36 different countries which include:
Switzerland, Vatican, San Marino, Andorra, Monaco, Liechtenstein, Iceland, The United Kingdom, Sweden, Spain, Slovenia, Slovakia, Romania, Portugal, Poland, Netherlands, Austria, Estonia, Denmark, Czech Republic, Croatia, Bulgaria, Belgium, France, Finland, Greece, Germany, Malta, Luxembourg, Lithuania, Latvia, Italy, Ireland, and Hungary.
SEPA transfer time
The payment made through the SEPA transfer can take 1hour to 24 hours. An ordinary bank transfer can long from two to five days and even levies large commission. The domestic SEPA payments are quick; they get cleared a few times in a day, which means that one can easily get it transferred in a few hours.
Make sure you are making transfers on banking days. Most of the cross border SEPA payments also get credited in the following morning, if payment is done before 5 pm. (Only if both the days are banking days). There are some of the SEPA holidays which are not considered as public holidays in all the SEPA countries.
SEPA transfer costs
Commonly, you need to pay the same cost for the SEPA money transfer, no matter to whosoever banks you want to make a transfer to. It is not permissible to charge differently based on bank location.
So in case if you are the one who is in the United Kingdom and have a bank account with any of the UK bank, it will not make a difference if you want to make a SEPA transfer to another UK account or even to the German one. For more details, you can contact your bank.
SEPA transfer benefits
The SEPA is a part of the European harmonization process which has led to the common Euro currency, for example. It also promotes the freedom of trade and movement of European companies and citizens.
The payments of Euro-denominations within SEPA don’t differ from the domestic payments at all. Few of the benefits of SEPA transfer includes:
- - It allows easy bank transfers to cross the border within Euro areas.
- - The transaction costs are lower and faster.
- - The payment gets completed within the validity period of guarantee and banks are not allowed for making any deductions for the amount transferred.
- - The customers get also clear and simple information on any of the charges and costs. This means there are no hidden charges involved in the local bank.
The only demerit of SEPA transfer is its restricted access, which means it is not available all around the world. It is limited to only 36 countries listed above.
What is SWIFT transfer?
The SWIFT means society of worldwide interbank financial telecommunication. It is a system of financial messaging which runs on the network of tens of thousands number of the financial institution from across the globe.
This system enables the institutions to securely sending and receiving information on financial transactions in the most standardized way using SWIFT code for international bank transfers. This allows the money to be transferred from one bank to another, anywhere in the whole world virtually and also in various currencies.
Where can SWIFT transfer be performed?
SWIFT payment transfers can be performed anywhere around the world and also allows to make a transfer using different currencies.
SWIFT transfer time
You just need to fill in your beneficiary details like bank account number, the bank’s postal address, and SWIFT code in one form. As soon as this is done, the amount gets debited from the account and can get credited to a foreign bank account in approximately 48-72 hours.
SWIFT transfer costs
The transfer cost of SWIFT varies. These costs include the fees charged by the bank as well as the administration costs. The person making the transfers should know this that is based on the bank or country where you are located, the financial institution or even the intermediary bank can charge the recipient (the person who receives money) via SWIFT.
They might also deduct a few of their additional commissions or charges from your total amount received. As there are few hidden costs, it is your responsibility to be aware of fees that are charged by your financial institution when you receive or make SWIFT payments.
SWIFT transfer benefits
It is convenient: The SWIFT wire transfer can be made all over the world. You can send or get money through this anywhere. They are available and accessible and the best part is, you receive the money in your form of currency only.
SWIFT transfer disadvantages
Fees. These transfers charge some fees for every transaction. Usually, the sender makes the payment for such costs and the receiver then receives the money. But sometimes it also needs minimal fees from the receiver or charges a small percentage of the money they receive. This means they are costly.Non-reversible. Once you have made a transfer through Swift, it is non-reversible. The sender doesn’t get the money back in any of the cases. This is a bit risky when you make a transaction for something and you personally not aware of the receiver.
SEPA vs SWIFT bank transfer - which is better?
Well, SEPA and SWIFT bank transfer is quite different, but both of them share the same objective. They both strive forward for offering reliable, secure and seamless money transfer to the people around and for business.
This helps in enhancing the integrity of the increasing dynamic payment system. However, there are some differences in both of these systems which conclude SEPA as a better option. It is because when the experts performed a comparison between these two, they found SEPA transfers are hassle-free. It is because for making SEPA payments, you don’t need the name of the receiver, BIC, payment reference, beneficiary address, bank details, account number or other details which is not possible to collect every time. While for making SWIFT bank transfer, you have to enter all the specified details including SWIFT bank code correctly. When it comes to speed, SEPA has been found more convenient and fast as compared to SWIFT.
Buy cryptocurrency with SEPA transfer on XMLGold
In the situation when you want to buy cryptocurrency or e-currency with SEPA transfer you may visit XMLGold. XMLGold will offer you a fast and an easy way to exchange SEPA transfer for e-currencies or cryptocurrencies such as: Perfect Money, Advcash, Payeer, Litecoin, Bitcoin, Tether, PerfectMoney Voucher, C-Cex Code, Ecoin Code, XMLToken...
Besides online currency exchange at this platform, you can also use the XMLGold Affiliate program for passive income. Likewise, XMLGold offers an advanced Discount System which grows with each money transfer and can achieve a discount of up to 30%. It should be noted that XMLGold is one of the oldest e-currency exchange points and has been operating since 2006, proving itself as a reliable partner and service provider.
Presently, SEPA Transfer and SWIFT Transfer are the most widespread online banking systems for international payments around the world. The money transfer from one bank account to another is accurate and fair through these two systems. However, when their features and merits as transfer time and fees were compared by the experts, SEPA transfer was found on the winning side.