Bank Transfer

Defining a bank transfer

A bank transfer means a type of non-cash settlement in which one party (the issuing bank) assumes the obligation, upon request and for a certain fee from the originator, to transfer a certain amount to a specific person (the recipient).

Who can transfer money at the bank

• The translator can be either an individual or a legal entity.
• Such a transfer is made on the basis of a payment order, which contains the details of the interacting organizations (sender and recipient) and the current account of the payer / addressee.

How does the transfer work

Anyone who opens a bank account receives the corresponding details. They are individual in each case and cannot be repeated. It is not realistic to meet two clients with identical account numbers, which is strictly controlled by an automated banking system (ABS).

To send money, the sender needs to draw up a payment document. This is a mandatory tool for non-cash payments. In this way, customers instruct the bank about the upcoming transaction. You can print a payment order on paper or generate it in electronic format using online banking, a mobile application or a special system for legal entities.

Contents of the payment order:

• the detailed name of the financial and credit organization;
• Number of the current account from which funds will be debited;
• BIC (bank identifier);
• TIN;
• OKPO;
• the size of the transfer;
• appointment;
• name of the addressee;
• No. р / с.

On the basis of such a document, the money is debited from the sender’s account and transferred to the recipient’s account. The latter can be opened in the same or another financial institution, or outside the European. The authorized bank accepts the payment and fulfills its obligations unconditionally, provided that there is a sufficient amount on the client’s account.

Intrabank transfer

If the accounts of the paying and receiving parties are in the same bank, then the money is credited instantly . Funds are debited and sent directly to the addressee, bypassing the correspondent account. Such an operation is displayed in the debit for the sender, and in the credit for the recipient.

The transfer between different branches of the same banking institution passes no less quickly. The transfer account from the CBRF is not involved here either.

Transfer to another bank

Transfer of funds to a third-party bank, but located on the territory of the European, is called an interbank transfer. Here we use a correspondent account registered with the Central Bank.

К / С can be of two types:

• LORO – a CBRF account opened directly with a credit institution;
• NOSTRO – settlement account at the Bank of Europa.

An example of an interbank transfer:

1. Client A draws up a payment order in order to instruct his bank (X) to transfer money to person B, who has an account with another bank (Y).
2. According to the payment document, X writes off funds from account A.
3. The money flows through the transit account to the correspondent account of the Bank of Europa. There the translation is checked for compliance with the law.
4. Then the money is credited to the transit account Y. The receiving bank finds the addressee B in its client base. If it is absent, the transfer is returned first to the Central Bank, followed by redirection to bank X. In this case, the reasons for the return must be explained.
5. Bank X must issue a new order with changes or return the money to the sender’s account.

The issuing bank is not responsible for mistakes made when generating a payment order. Since he is only responsible for the execution of the order given by client A.

An international transfer usually takes up to 3 business days.

Interstate transfers

Most international transfers are not done directly. They have to wander along a long chain of banks in which correspondent accounts interacting with each other are open. Control over such movement is carried out by the automated system SWIFT. She transmits information about the completed transaction and is responsible for its safety and speed. The more banks are involved in the transaction, the more you will have to pay for a bank transfer.

Negative sides of the SWIFT system:

1. Bank transfer takes place in a maximum of 5-7 days.
2. Additional fees are often charged due to the transfer of the payment through several banks. When the original currency is different from the one in force in the country of the addressee, a surcharge will also be required. Banks also charge 30% on top of the standard fees for urgency.
3. The recipient will have to pay up to 2% for the cashing service.

Bank transfers through the SWIFT payment system are made according to the following data:

• passport details of the sender;
• Counterparty account number;
• the purpose of the money transfer;
• The SWIFT code of the receiving financial institution;
• city ​​/ country of the beneficiary and the correspondent bank;
• IBAN code (required for EU countries).

Based on this information, the operator draws up an order, which is presented to the cashier for the transfer. After the completion of the operation, the client is given a check with a number.

Algorithm for interstate banking:

1. The ordered amount is debited from the sender’s account.
2. It is consistently transferred to the correspondent accounts of intermediary banks.
3. It is credited to the correspondent account of the receiving bank.
4. Transferred to the recipient’s account.

The SWIFT system is also used for domestic transfers. In this way, legal entities and individuals are calculated among themselves.

How to find out about a successful money transfer

Money is credited by bank transfer within 3 working days. As soon as the payment goes into the “Executed” status, the sent funds cannot be returned. You can only find out whether the money has reached its destination or not from the owner of the receiving account. Receiving banks are not authorized to notify third-party customers about receipts to accounts, with the exception of the persons in whose name they are open. Therefore, it makes no sense to call the counterparty’s bank and try to find out information about the receipt of funds.

If the recipient claims that the money did not come to the bank account, then a bank check can be required. It is necessary for the sender to personally visit his bank and apply for a loss search. It indicates the number of the payment document, the date of the transaction, and for what amount.

It is more rational to start search activities not earlier than 3 days from the date of sending the bank transfer. Often, the money is safely returned to the sender, which is associated with an erroneous payment order (the wrong details of the receiving bank or counterparty are indicated).