How the SWIFT network moves your money securely across borders 

When you send money abroad, it doesn’t just teleport to its destination. Behind the scenes, a vast network ensures your funds reach the right place safely and efficiently. This network is known as SWIFT, and it’s the unsung hero of international banking. While you don’t need to be a fan of Taylor Swift to appreciate it, this system ensures your funds travel as swiftly as one of her chart-topping hits. 

So, what is SWIFT? 

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. Founded in 1973, it is a cooperative society headquartered in Belgium. It provides a standardised, secure messaging system that enables financial institutions worldwide to communicate payment instructions and other financial information. Importantly, SWIFT does not move money itself. Instead, it transmits messages between banks, ensuring that payment orders are communicated accurately and securely. 

 How does a SWIFT payment work? 

  1. Initiation: You request an international transfer from your bank and provide the necessary details, such as the recipient’s name, account number (IBAN) and the SWIFT/BIC code of their bank.
  2. Messaging: Your bank sends a SWIFT message to the recipient’s bank with the payment instructions. 
  3. Intermediary banks: If there is no direct relationship between the sending and receiving banks, the message may pass through intermediary banks, with each bank facilitating part of the transaction.
  4. Completion: The recipient’s bank receives the message and credits the funds to their account.
 
This process ensures that international payments are executed reliably and securely. 

Why SWIFT matters 

It’s everywhere: SWIFT connects over 11’000 financial institutions in more than 200 countries. So, if you’re making a payment abroad, it’s likely that SWIFT is involved. 
It’s safe: With encryption and a robust network, SWIFT ensures your money doesn’t disappear. 
It’s (usually) reliable: Transfers typically take 1-4 days, though delays can happen, especially if your bank’s network is slower than a Monday morning. 

Understanding SWIFT codes 

A SWIFT code, also known as a Bank Identifier Code (BIC), is a unique 8- or 11-character code that identifies a specific bank. The code comprises: 
  • Bank code (4 letters): Identifies the bank  
  • Country code (2 letters): Indicates the country 
  • Location code (2 letters or digits): Specifies the location 
  • Branch code (optional): Denotes the branch 
For example, the SWIFT code for Swissquote Bank (which is the same as for Yuh) is SWQBCHZZXXX:  
  • SWQB: Bank code identifying Swissquote Bank. 
  • CH: Country code for Switzerland. 
  • ZZ: Location code representing the bank’s head office. 
  • XXX: Denotes the primary office branch 

Fees and considerations 

While SWIFT facilitates international payments, it’s important to be aware of potential fees: 
  • Transfer fees: Banks may charge fees for sending or receiving SWIFT payments. 
  • Intermediary bank fees: When sending money internationally, intermediary banks may be involved, especially if the recipient’s bank doesn’t support the currency you’re sending. They may deduct these fees from the transfer amount. These middlemen often charge handling or currency exchange fees, which neither you nor the recipient can control, and these fees can add up quickly. To minimise extra costs, ensure that both your bank and the recipient’s bank support the currency and payment method you are using. Otherwise, your money may incur additional costs—or worse, be returned to you with a deduction for handling fees. 
  • Exchange rate margins: Currency conversions may include additional costs. 
In short, international transfers can cost CHF 10–50 or more, depending on the banks involved.  
Yuh tip: Payments within the SEPA (Single Euro Payment Area) in EUR and payments in Switzerland in the 13 included app currencies are free. 
SWIFT connects over 11’000 financial institutions in more than 200 countries. So, if you’re paying abroad, odds are SWIFT is involved.  
Keep your transfers smooth with Yuh
When sending money abroad, precision and planning are key. Always double-check the recipient’s BIC (Bank Identifier Code) and IBAN to ensure your funds reach the correct destination without delay. 
At Yuh, we’re committed to transparent pricing and keeping fees as low as possible. Here’s how we make your banking experience smoother: 
  • Free transfers in Switzerland and Liechtenstein: Send money in 13 currencies (CHF, USD, EUR, GBP, JPY, AUD, CAD, SEK, HKD, NOK, DKK, AED, and SGD) with no additional charges. 
  • SEPA transfers in EUR: Enjoy fee-free transfers within the SEPA area when sending euros. 
  • SEPA transfers in other currencies: A flat fee of CHF 4 applies. 
Please note that while Yuh doesn’t charge for these services, third-party banks involved in the transfer process may impose their own fees. 
Plan ahead: SWIFT transfers can take 1–4 business days, so consider this when you have to make urgent payments.