SWIFT Payments: The Frenemy of the Banking World
Ah, SWIFT payments. They’re like that one friend you can’t live without, but also drive you a little nuts. On the one hand, SWIFT connects the global banking system, so we can send money all over the world. On the other hand, it feels like they’re still using a fax machine from the 1970s to do it. It’s a love-hate situation, trust me.
A Quick History Lesson (Don’t Worry, It’s Short)
SWIFT was born in Brussels in 1973 (yes, it’s been around that long). It’s basically a messaging system for banks and financial institutions to tell each other that money’s been sent. Think of it like a bank-to-bank group chat, but no, the actual money doesn’t move through SWIFT—it just gives the “Hey, cash is on its way!” heads-up.
What’s It Like Sending a SWIFT Payment?
The Smooth Sailing Scenario:
When everything goes right, which is about 90% of the time, it’s a dream. You set up the payment, click send, and two days later—boom!—your recipient has the funds. Everyone’s happy. No stress. Just good vibes all around.
The “Where’s My Money?!” Scenario:
Now, for the other 10% of the time… it’s not so dreamy. You hit send, wait a couple of days, and then your customer knocks on your door asking, “Umm, where’s my money?” The good news: the money isn’t lost. It’s probably just chilling at a correspondent bank somewhere, waiting for clearance. You see, as payments zigzag through different banks, there can be delays, compliance checks, or even sneaky little fees taken along the way. It’s frustrating, but rest assured—thanks to the trusty MT103 receipt (fancy name for a SWIFT receipt), you know the funds will get there… eventually. In other words, SWIFT happens.
What Do We Recommend?
Honestly, SWIFT is perfect for big, less frequent B2B payments. But if you’ve got lots of smaller, more frequent transactions, it might not be your best bet. That said, if you’re constantly battling fraud claims like “I didn’t get the money!” SWIFT’s got your back with that MT103 receipt as proof.
In the end, it’s your call. We’re just here to help you figure out what works best for you and your customers—and, of course, we’ll help you make it happen. SWIFT or not, we’ve got you covered!
Got questions? We love talking shop, so don’t be shy. Hit us up!