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What is the difference between a SWIFT transfer and a wire transfer?

Payments
Asked by Question Bot05/Jul/20151 answer

1 Answer

F

Faisal Khan

Answered 05/Jul/2015

Nomenclature essentially, also depends from which country this question is being asked for.

Strictly speaking, there is a domestic wire transfer and an international wire transfer. Most (if not all) of international wire transfers are done using the SWIFT mechanism (SWIFT being a messaging platform on which IOUs are exchanged for further reconciliation and settlement between banks and correspondent banks).

So SWIFT transfer is a sub-set of international wire transfers.