Money transfer via SWIFT
S.W.I.F.T. (full "Society for Worldwide Interbank Financial Telecommunications", pronounced as "SWIFT") provides an international system for transfer of financial data. One of the important functions of the society is carrying out money transfers between banks through the SWIFT money transfer system.
SWIFT transfers are carried out throughout the world between those banks being the members of this society. Through the SWIFT system, money transfers of enterprises, individual entrepreneurs and individuals are carried out. When making a transfer, knowledge of the SWIFT code of the beneficiary’s bank is required.
Clearing means non-cash payments between countries, companies, enterprises for any goods, securities and services delivered, sold or provided, by means of mutual offset, based on the terms of the balance of payments.
There are several types of clearing, when working with individuals, the banking clearing is used.
Banking clearing is a system of interbank non-cash settlements carried out through clearing houses and based on a mutual offset of equal payments to each other.
For ordinary citizens, clearing will be interesting in terms of a loan repayment, when making a transfer of money from one account to another. Clearing to a large extent allows you saving on bank charges and operating expenses. Settlements on clearing are, as a rule, held on a certain date (for example, the end of the reporting period or every first day of the month).
Gross settlement system. The difference between the gross and the clearing systems is speed and volume, that is, the gross is used when an immediate final settlement is required. Payments are processed in accordance with the following specified priorities:
Payment documents and messages are processed only on the specified processing date.