How to Make a SWIFT Payment: A Step-by-Step Guide

What is a SWIFT Payment?

SWIFT, short for the "Society for Worldwide Interbank Financial Telecommunication", is a cooperative established in the early 1970s. It is owned and operated by the financial institutions that use the service.

In simple terms, SWIFT is a vast messaging system that connects banks and financial institutions worldwide and allows them to process fast and secure payments, primarily for cross-border transactions.

Think of SWIFT as a system of interconnected banks and standardised processes. When you send money to another country, it taps into this network and transfers payment orders in the form of SWIFT codes. That way, SWIFT isn't actually sending your money, but rather, it's providing a secure network through which that transaction can occur.

In addition to providing services for global banks, SWIFT services are also used by various other industries:

• Money brokers
• Non-bank financial institutions
• Foreign exchanges
• Asset management companies
• Corporates
• Clearing systems
• Depositories

How SWIFT Payments Work

SWIFT payments send payment orders using SWIFT codes. A SWIFT code is a unique identifier assigned to each bank. Also known as a bank identifier code or BIC code, this 8 or 11-digit number comprises the following information:

• The Bank Code: The first four digits represent the bank, such as HSBC for HSBC or BOFA for Bank of America.
• Country Code: The next two digits represent the country code, such as HK for Hong Kong.
• Location Code: The seventh and eighth digits denote the location of the bank's main office.
• Branch Code: If used, the final three numbers indicate the specific branch where the money is being transferred.

If you want to send money to a vendor overseas, for instance, you would need their account number, identifying information, and SWIFT code. The latter will tell your bank where to send the money, while the account number will identify the specific account within that bank.

If the banks involved in the transaction don't have a direct relationship, an intermediary bank is used to facilitate a connection and transfer the funds.

SWIFT Payment Fees and Cost

Fees may be charged to send and receive SWIFT transfers, and while they usually fall between HKD 80 and HKD 400, there are many variables at play.

SWIFT fees vary depending on the banks and countries involved, but they can include outgoing transfer fees, intermediary bank fees, recipient bank fees, and currency exchange fees.

The SWIFT network charges member institutions a one-time fee, along with membership fees that vary by the level of membership. The system generates funds based on the length of secure messages sent through the SWIFT messaging system. The more complicated the transaction, the longer the message and the higher the cost.

This is why SWIFT charges can vary so greatly, and it's why you should always check in advance to ensure you know how much a transfer will cost you.

How Long Does it Take to Send Money via the SWIFT Network?

The Society for Worldwide Interbank Financial Telecommunication claims that 90% of SWIFT payments reach the recipient's bank within an hour. It can take up to 5 business days, though, and depends on the size of the transfer, the checks involved (including anti-fraud and anti-money laundering measures) and whether any intermediary banks are needed.

Countries Connected to the SWIFT Network

The SWIFT network spans over 200 countries around the world, and it can generally be used to transfer money anywhere. But there are exceptions.

In recent years, there have been calls for some countries to be removed from the network due to sanctions. A number of Russian banks were removed from the network back in 2022, for example, and restrictions have also been placed on Iranian institutions in the past.

How to Make a SWIFT Payment

In addition to being quick and secure, SWIFT is also very easy to use. If you own a bank or business account capable of making international transfers, it should be able to make SWIFT payments and will likely provide a frictionless process through which you can make such a payment.

To make a SWIFT payment from your business account, follow these simple steps:

Prepare Necessary Information

The first step to making a SWIFT payment is to gather all of the necessary details about the recipient, including:

• Their account number
• Their full name and address
• The bank branch details
• Their SWIFT code

You will also need to calculate the amount to send and note down further details of the transaction for accounting purposes, such as the reason for the payment.

Contact Your Bank and Request a Transfer

Use your bank's online portal or phone service or visit in person to request an international payment.

Choose the "SWIFT payment" or "international wire transfer" option and then enter all of the information gathered above.

Double-check that the information is correct.

Confirm the Recipient Country and Recipient

Your bank will show you where the money is being sent, highlighting the country of origin and bank. Confirm that these details align with invoice information to make sure you are sending the money to the right place.

Initiate the Transaction

Once you have completed the above steps and double-checked all of the information, you can initiate the SWIFT transfer.

Make the Payment and Wait for Confirmation

Wait for confirmation that the money has been sent, followed by confirmation that it has arrived in the recipient's bank. As noted above, SWIFT payments usually arrive in less than an hour, but they can take longer if additional checks are needed or you're sending during a busy time.

Enjoy Low-Cost SWIFT Payments with Aspire

As mentioned above, SWIFT is an essential tool for making cross-border payments—particularly if you work with international clients or suppliers. However, relying on traditional banks for these transfers can be costly due to high FX markups and hidden fees.

For a more cost-effective solution, consider Aspire. With an Aspire Business Account, you can send global payments to over 130 countries in more than 30 currencies—enjoying market-leading FX rates that are up to three times lower than those of traditional banks. All fees are displayed upfront, so you always know exactly how much you are paying.

Aspire also lets you open multi-currency accounts in HKD, CNY, USD, EUR, and GBP, making it easy to send and receive funds in these currencies without incurring unnecessary conversion fees. You can open an Aspire Business Account in as little as one business day, with no account opening fees or minimum balance requirements.

Sign up for an Aspire account today to take control of your business finances—with all the tools and features you need to operate more efficiently.

Frequently Asked Questions

How does a SWIFT code differ from a BIC Code?

A SWIFT code is the same thing as a business identifier code, also known as a BIC code. It's the same number and is just given different names by different financial institutions. If you're requesting information from a vendor and they can't find their SWIFT ID, try asking them for their BIC code instead.

Where do I find a SWIFT code for my business?

You can check your bank or business account, as well as your statements. You can also search for it online, use this SWIFT code finder for Hong Kong banks, or simply ask a representative at your bank. Bear in mind that a SWIFT code is unique to your branch and not your account, so it should be easy to find online.

Are SWIFT payments safe?

Yes, it is very safe to send and receive money using SWIFT. It's a trusted and established global payment system that has been used for decades, and after migrating to a new standardised format known as ISO 20022 (a process that began in 2023), it has become even safer.

It's worth reiterating that the SWIFT network itself doesn't actually handle or process the money. That's the job of the financial institutions involved in the transaction. SWIFT merely provides a secure messaging system through which the associated institutions can make the transfer.

What is the difference between ACH and SWIFT payments?

ACH stands for Automated Clearing House. It is a payment system primarily used for domestic payments within the United States. SWIFT, on the other hand, is a global payment network used by over 200 countries around the world for cross border wire transfers.

What are the benefits of SWIFT as a payment method?

SWIFT was designed to facilitate faster and easier payments using a large network of correspondent banks. Its speed is one of its main selling points, as it means that businesses can send money to vendors, freelancers, and other service providers around the world in a matter of hours.

SWIFT payments are also secure thanks to its advanced messaging system, one that has been updated in recent years to provide even more safety.

Additionally, the interconnected nature of the SWIFT system means that most bank accounts and business accounts can process such a transfer. Of course, there are fees associated with SWIFT payments, but these may be lower than many alternative money transfer options.

Are SWIFT payments the same as wire transfers?

A wire transfer is a general term used to describe electronic money transfers, including SWIFT payments. They are not exactly the same thing.

What should I do if my SWIFT transfer is delayed?

If you have waited a sufficient amount of time and the money has not yet cleared, contact your bank to inquire about the transaction. The recipient can also contact their bank, as the issue might be on their end. They should be able to tell you if/why the transfer has been delayed and if there is anything they need from you to speed it up. Bear in mind that SWIFT payments can take up to 5 business days to clear.