Oct 292014
 

Federal Reserve Bank of New YorkQuestion:

The Federal Reserve Bank of New York, is trying to send me money through a wire transfer to my bank account and they are asking me for my banks swift code. I called my bank and they said they don’t have a swift code. The federal Reserve bank in New York, told me that I have to register the code, and to do that, I had to pay $427. I need to know if this is right.

By the way, I am in Texas. I need a response to this message ASAP please. Thank you

Cheryl

Answer:

Dear Cheryl, thanks for writing to us.

You said the Federal Bank wants to send you money and they want a SWIFT code for your bank. Do they want you to pay them $427 for registering a SWIFT code? A bank individually registers for it, it is not upon their customers to do it. If they don’t have a SWIFT code, they are not a member of SWIFT community.

If you haven’t read our article on SWIFT codes, I urge you to read it here. SWIFT is used i case of international transfers, and for local transfers within the US, you have the Fedwire network. I doubt that the Federal Bank of New York would request for a SWIFT code for sending money to Texas. They could use a local framework instead.

I advise you to be careful because scams in the name of Federal Bank are quite common these days. You could read this on the bank’s website. I’d like to quote a statement from a link on that page:

The Federal Reserve Bank of New York and other Federal Reserve Banks will never contact the public via unsolicited phone calls or e-mails asking for money or any other type of personal information. Moreover, the Federal Reserve Bank of New York and other Federal Reserve Banks will never contact the public regarding the issuance of a wire transfer.

Having said all this, even if this was a genuine case, then remember that you are not supposed to pay for registering a bank as a member of the SWIFT network. Whoever is requesting money from you maybe trying to scam you, so be alert.

Sep 172014
 

By Mohammed Waseem

Sending money internationally attracts many things including foreign exchange rates, exchange houses, fees, etc. It is important that there is control over these factors, in order to ensure that a transfer in smooth and costs low. The options that companies have are managing all these on their own or partnering with third parties to provide excellent service.

Money Move IT is a company that is registered in New Zealand and has relationships with several of the world’s leading online FX services to ensure excellent rates, lower fees and more value in foreign currency, unlike many other companies.

Money Move ITMoney Move IT guarantees lower fees, better rates, faster transactions, safety and security along with the ability to send money at any time. The service is used not only by individuals, but also organizations, merchants and developers. For individuals, fees start at $4.99 and they can send small and large amounts with ease. No receiving fees apply in most receiving countries.

Organizations can use the service to pay suppliers and receive from other parties. Small businesses, government departments, NGOs, all companies can sign up to use Money Move IT. Agents can refer customers and earn commission from the transactions referred, thus increasing their profits. Merchants and developers can accept payments on their websites with Money Move IT.

Savings per transaction may range between $40 and $60 and payments can be sent directly to bank accounts. Additional security is ensured through the usage of SWIFT network. Apart from these, great exchange rates are on offer.

To use the service, senders have to register and login, then initiate transfer to any bank account in over 40 countries. Money has to be paid into the company’s local account; they don’t accept cash payments and they don’t directly debit the sender’s account. Senders need to manually transfer the money, which can also be done through internet banking.

Individuals will be able to send up to $200 until they confirm their identity. Receivers in Tonga and Samoa can collect the funds from local agents as well. On the registration page, users can see whether their country is supported to send and receive money.

Jan 122012
 

By W.H.A.| SpeedyPay.info

I’m still getting a lot of comments and messages from people asking me what the SWIFT code is for this bank or that bank. Rather than spend all my time looking up individual SWIFT codes, let me point you to the resources you can use to find the SWIFT code for any bank or financial institution.

First of all, if you have no idea what I’m talking about, you can read here to learn a little about SWIFT codes and their uses:

SWIFT Money Transfers

Secondly, see this short article on looking up SWIFT codes:

SWIFT Code Finder

As the second article says, you can look up SWIFT codes at Swift.com’s online lookup page here:

SWIFT online directories and downloads

Other ideas for finding an institution’s SWIFT code are:

  • Determine the institution’s name and address. Find out if the company is part of the Swift network. If the business is not part of Swift it won’t have a Swift code assigned.
  • Call the bank or financial institution for which you want the SWIFT code, and ask them. The best departments to contact will be the Trading, Wire Transfers or Securities Settlement areas of the company.
Nov 272011
 
SWIFT Code Logo

Logo of the Society for Worldwide Interbank Financial Telecommunication, provider of SWIFT codes

By W.H.A.| SpeedyPay.info

I get a steady stream of messages and comments from people wanting the SWIFT code for particular banks around the world. Rather than spend my time looking up SWIFT codes for people, it would be easier to tell you how to look it up yourself.

SWIFT Code Finder

You can look up SWIFT codes at swift.com’s online lookup page here:

SWIFT online directories and downloads

You can also call the institution for which you want the SWIFT code, and ask them. They will be happy to provide you with that information.

A SWIFT code, also known as ISO 9362, is a unique identifier given to every financial institution around the world. These codes are used when transferring money between banks, and especially when conducting international wire transfers. They are also used for the exchange of messages between banks. They are sometimes included on bank statements. The easiest way to learn the SWIFT code of your bank is to ask them.

Jun 012007
 

SWIFT bank transfer system logo

What are SWIFT money transfers and how do they work?

Who are SWIFT?

A few years ago someone wanted to send me a payment for a subscription website that I was running, and he asked me for my SWIFT code. I had never heard of a SWIFT code, and had no idea how to get one.

So I did some research and I learned that SWIFT (www.swift.com) is an organization co-operatively owned by many financial institutions and basedin Belgium. SWIFT has many functions, in particular supplying secure, standardized interface software to financial institutions around the world.

In 1973, banks still communicated via telex — not very secure, minimum standards and not automated either. Imagine receiving 10,000 telexes a day. So, 239 banks from 15 countries formed a cooperative to “automate the telex”. They called it the Society for Worldwide Interbank Financial Telecommunication (no “s” at the end). S.W.I.F.T.

SWIFT are now one of the prime network providers for movement of cash between banks (the average daily value of SWIFT payment messages today is over $5 trillion!), and for many other types of transactions. SWIFT provide a financial EDI infrastructure, offering Electronic Funds Transfer (EFT) and Electronic Trade Confirmation (ETC), allowing the banks and other parties involved, the message partners, to have Straight Through Processing (STP). The idea is to substantially reduce the time taken to process a transaction from a few days (as is only possible conducting the transaction manually), to within a day.

Bottom line: the reason money can be moved so quickly from one financial institution to another today, is because of SWIFT. They key to all this? A numerical code called a SWIFT or BIC code.

SWIFT Codes or BIC Codes

One of SWIFT’s crucial functions is to allocate SWIFT codes (which have now been renamed BIC codes). The SWIFT or BIC code is a unique alphanumerical identifier that can be used to identify any financial institution worldwide. This includes brokerage firms, clearing houses, investment managers, stock exchanges, securities deposit organizations and banks. Every bank has a different code, and they use it whenever money is wired from one bank to another. So if you need to wire money to any bank, it helps if you know the SWIFT code, which you can get from the receiving bank. Of course you’ll also need the account number that you are sending to.

A SWIFT Code consists of either eight or 11 upper case alphanumeric characters. If it has eight characters it is probably an HQ or primary financial institution. If it has 11, it’s probably a branch.

  • The first four characters are the bank code (usually the first letters of the bank’s name).
  • The next two characters tell you the ISO country code.
  • Then come two characters that identify the bank’s location.
  • The last three characters (which are optional) identify a specific branch office of the bank or other financial institution.

For example, Bank of The Philippine Islands has the SWIFT code BOPIPHMM, the MM is for Metro Manila.

Nowadays, however, they call it a BIC (Banking Identification Code). So if you need to wire money to someone’s bank account, get their BIC code and account number. Keep in mind that o ne financial organisation can have a number of different BICs.

These different BICs may be for different services, and separate BICs are used for test and live, as a precaution against accidentally publishing test feeds into production.