Instead of transferring funds, the SWIFT network delivers payment orders between banks using SWIFT codes. It is used to send money overseas fast, accurately, and safely.
It provides a network through which 10,000 financial institutions in 212 different countries send and receive information about financial transactions to each other.
It acts as a messenger between banks. This network allows individuals and businesses to accept and send international money via online or credit card payments. This can be done even if the payer has an account in a different bank than the payee. A network is a place for secure financial messaging.
SWIFT Network User:
The majority of SWIFT network users are banks, it is also used by many other businesses like non-bank financial institutions, money brokers, security broker-dealers, clearing systems, foreign exchange and many more.
Limitations of SWIFT Network:
- SWIFT transfers may take up to 5 working days in some instances.
- Fees are often levied by correspondent and recipient banks.
- If your SWIFT transfer involves two currencies, banks can apply poor exchange rates.
- SWIFT transfer may charge a high fee to transfer a small amount of money.
- When you exchange your currency for another currency, banks can add their profit to the rate they offer you.