Fast international payments, everywhere it matters

When a company wants to transfer funds to a foreign bank account - on a one-off or recurring basis - there are two types of transfers available: SEPA and international transfer (SWIFT or local rails).

SEPA transfer

When transferring money in euros to a beneficiary in another European country, your company is obliged to make a Single Euro Payments Area (SEPA) transfer. European regulations require banks within the eurozone to transfer funds via this system.

The SEPA zone comprises 36 countries and regions:

1. All 27 European Union member states, including those outside the euro zone, such as Poland and Hungary.
2. The United Kingdom.
3. The 3 member states of the European Economic Area (Norway, Iceland and Liechtenstein).
4. Andorra, the Principality of Monaco, San Marino, Switzerland and the Vatican.

How long does it take to complete a transaction? There is no difference between countries; a SEPA transfer between two French banks takes the same time to complete as a SEPA transfer between a Spanish bank and a German bank.

To make a SEPA international transfer, a manager can:

1. Go to their bank branch.
2. Use an automated teller machine (ATM).
3. Connect to their online bank account, from their computer or mobile app.

International transfer

When making a bank transfer to a foreign country, in a currency other than euros (e.g. the US dollar), you can process it using local networks or SWIFT (Society for Worldwide Interbank Financial Telecommunications).

The SWIFT system brings together more than 10,000 banks across 200 countries. 

The drawbacks of this transfer method are the expensive fees that banks charge, and the time it takes to transfer the funds. So, if you need to make foreign currency transfers on a regular basis, it’s worth considering other options. Our X card, for example, allows you to make payments in foreign currencies, commission-free. Through our partnership with Wise, Qonto also allows you to process foreign currency transfers using local networks.

The local rails transfer method leverages a country's domestic banking system. This solution is usually quicker and cheaper.

With your Qonto account, you can make transfers to over 150 countries in more than 20 currencies, using local rails or SWIFT. 

Please note that it’s mandatory to make an international transfer if you want to make an international payment in a foreign currency, even if the beneficiary's bank is located in the euro zone.

To initiate a SWIFT transfer, you have several options:

1. Visit one of your bank's branches.
2. Log in to your online bank account or on your bank's mobile app.

So that your bank can process the international transfer, you'll need to provide them with the following information:

1. Your beneficiary's details (surname and first name, or company name, and account number or IBAN code).
2. The BIC/SWIFT code of the transfer recipient's bank.
3. The address of the beneficiary's bank (in some cases).

Sending money abroad is a completely paperless process, thanks to a secure telecommunications system that connects banks to one another. In fact, each bank holds a commercial current account with the other international banks.

For example, a company based in France wants to make an international transfer of €2,000, via a French bank, to a company in the USA. This American company has a current account with an American bank.

The French bank sends a SWIFT message to the American bank. It asks the bank to credit the equivalent of €2,000 to the beneficiary's account.

To do this, the American bank debits €2,000 from the French bank's current account. It then applies the current euro/dollar exchange rate to convert the funds, before crediting them to the recipient's bank account.

Foreign currency transfers are subject to three types of fees:

1. The bank charges you a transfer fee. This may be a percentage of the transfer amount, or a fixed fee. For example, this fee is €9.50 at BNP Paribas if you make the transfer online, and at least €28.50 if you go to a bank branch.*

2. International transfers in foreign currencies are subject to an exchange commission. This corresponds to the conversion of foreign currencies into euros using an exchange rate, and the amount of this commission varies from bank to bank. For example, the maximum amount charged by La Banque Postale is €70.*

Some banks also charge a mark-up on the exchange rate. This amount corresponds to the bank's margin when converting currencies.

3. Some banks also charge fees to the recipient for receiving an international transfer. For example, BNP Paribas charges a €19 collection fee, as well as a foreign exchange commission between 0.25% and 0.5% of the transfer amount.*

It’s worth comparing different banks' rates for international transfers if you need to make a lot of them for your business. Don’t forget to check what means of payment and collection are available, too.

With Qonto, you receive your international transfers in your online business account for €5 per incoming transfer, regardless of the amount.

*Prices at the time of writing

Transfer speed can vary and is impacted by a few different elements including the transfer method used, the currency, the country it's sent from (and to), and the transfer amount. 

Thanks to Qonto's international transfers powered by Wise, transfers processed from your Qonto account using local rails can be credited in just a few seconds, or in up to 3 working days.

SWIFT transfers can take more time - approximately 4 to 5 business days for the money transferred to reach the beneficiary's account.

It can take longer for an international bank transfer to be completed, depending on the number of intermediary banks the funds pass through before reaching the beneficiary.

In addition, the time taken to process an international transfer can increase for a variety of reasons:

• The international transfer is blocked by the sender or recipient's bank.
• The bank details provided are incorrect, such as an incorrect IBAN or SWIFT code.
• The transaction is initiated online, outside branch opening hours (evening, weekend or public holiday).
• The issuer did not initiate the international transfer. To avoid waiting for money that hasn't been sent yet, ask your customer to provide you with proof of transfer from their bank.
• The transfer amount exceeds the issuer's maximum limit.
• There are insufficient funds in the issuer's account. This problem generally concerns standing orders.