SWIFT and SEPA are the two main international transfer systems. Learn how each works, what they cost, and which to use for different freelancer situations to minimize transfer fees.
Most international bank transfers use one of two systems: SWIFT (global) or SEPA (EU/EEA). Understanding which system applies to your transfer determines the cost, speed, and what information you need to provide.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the global messaging network used for international transfers between banks in different countries.
Key characteristics:
- Works between almost any two countries globally
- Costs: $25-50 sending fee at most banks + intermediary bank fees + receiving fees = $40-75 total cost per transfer
- Time: 1-5 business days depending on countries involved
- Information needed: SWIFT/BIC code, account number, bank name, bank address
SEPA (Single Euro Payments Area) is the EU payment system that allows cheap, fast EUR transfers between 36 European countries.
Key characteristics:
- Works between EU and EEA countries only
- Cost: Usually free or minimal fee (often free for online transfers)
- Time: Next business day (same day with SEPA Instant)
- Information needed: IBAN only
For EU-based freelancers with EU clients: Use SEPA. It is fast and free.
For EU-based freelancers with non-EU clients: SWIFT, or better, use Wise which has local receiving accounts in both regions and avoids most SWIFT fees.
For non-EU freelancers with EU clients: Ask them to use SEPA to pay a Wise EUR account. You receive EUR cheaply and convert efficiently.
Free to start. No bank connection needed. 150+ currencies, tax estimates for 20 countries.
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