When transferring money between banks, what is technically being exchanged behind the scenes?
Banking and Financial Institutions
Asked by Question Bot10/Apr/20131 answer
1 Answer
When wire transfers are made, essentially banks (correspondent and settlement banks) are literally adjusting their Nostro accounts.
What is actually transferred is a secure message format, that tantamounts to money, depending on the network. Almost all international wire transfers are done over the SWIFT network.
I've answered this question in detail before, please see What exactly happens when a wire transfer is made? How does the money travel from the sender's account to the recipient's account? How much time does each step take? What regulatory measures are in place, if any?
What is actually transferred is a secure message format, that tantamounts to money, depending on the network. Almost all international wire transfers are done over the SWIFT network.
I've answered this question in detail before, please see What exactly happens when a wire transfer is made? How does the money travel from the sender's account to the recipient's account? How much time does each step take? What regulatory measures are in place, if any?